LG Claims No Layoff Plan in Indonesia
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President Director of PT LG Electronics Indonesia Jaeyoung Lee has confirmed that there is no plan for layoff (PHK) at its two factories in Indonesia. “The economy is stabilizing and has shown signs of improvements and we will survive,” he said on Tuesday evening during the 2016 LG InnoFest Asia, at Grand Hyatt Hotel, Seoul.
Lee’s statement was made in response to the decision of two Japanese electronic manufacturers, Panasonic and Toshiba who recently have been restructuring and merging their factories in Indonesia. “We have other strategies, one of them is by strengthening our brand and entering non-conventional markets, such as ultra premium market.”
Lee is also optimistic that, to date, the company is still dominating the domestic market of electronic sales. “LG Indonesia’s contribution to global market is around 4-5 percent. It’s substantial,” he said.
In Indonesia, LG produced refrigerators, washing machines, air conditioner, televisions and audio-video devices as well as monitors. “Products from the factory are exported,” Lee noted.
Toto, one of the sales representatives of LG products in Medan, is optimistic that the phenomena occurred in Panasonic and Toshiba would not happen in LG. “See, we can hold an event [LG InnoFest] of this magnitude,” he said to Tempo.
Toto added that, LG’s step to make innovation by launching new products which targets ultra premium consumers also shows that the company’s performance is good. “The logic is that layoffs would not happen if the company is still performing.”
Questions & Answers
Q.Which specific strategies does LG plan to use to avoid layoffs, unlike its competitors?
Which specific strategies does LG plan to use to avoid layoffs, unlike its competitors?
LG intends to strengthen its brand presence and enter new, non-conventional markets. The company specifically mentioned targeting the ultra-premium market as one such strategy.
Q.What percentage of LG's global market contribution comes from its Indonesian operations?
What percentage of LG's global market contribution comes from its Indonesian operations?
LG Indonesia contributes between 4% and 5% to the company's global market. This figure is described by the President Director as substantial.
Q.Which products does LG manufacture in its Indonesian factories?
Which products does LG manufacture in its Indonesian factories?
LG produces a range of household appliances and electronics in Indonesia. These include refrigerators, washing machines, air conditioners, televisions, audio-video devices, and monitors.
Q.Where does LG export the products manufactured in its Indonesian facilities?
Where does LG export the products manufactured in its Indonesian facilities?
The article states that products manufactured in LG's Indonesian factories are exported. However, it does not specify the particular countries or regions to which they are exported.
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