LG Electronics Establishes First Global R&D Center in Indonesia

August 2023

In July 2023, LG Electronics Inc., the South Korean household appliance giant, launched its inaugural international research and development (R&D) center in Indonesia. The objective is to expedite TV manufacturing and sales across Asia. Situated in Cibitung, the R&D center is located 3.5 kilometers away from LG’s TV production sites and 40 kilometers to the east of its Jakarta sales office.

LG intends to strengthen its presence in Indonesia through the operation of its laboratory, manufacturing plant, and sales office within the area. The primary objective of the R&D center is to create innovative television models that cater to international markets while improving cost-effectiveness through localized strategies. Furthermore, the laboratory has plans to expand its workforce to 500 employees by 2025 and enhance local recruitment efforts by collaborating with academic and industrial partners in the region.

In recent times, the company extended its operations in Indonesia. In 2020, it transferred two of its six primary TV manufacturing lines from Gumi, located in North Gyeongsang Province, South Korea, to Cibitung. With the exception of certain flagship lines like StandbyME, the majority of the company’s television production occurs in Indonesia. These products are subsequently marketed and sold across various Asian nations. Since initiating its inaugural Indonesian branch in 1990 with a capital injection of USD 4.6 million, LG has consistently expanded its influence in the region year by year.

(Source: KED Global)


Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.