PT LG Electronics Indonesia (LGEIN) saw March exports drop 19 per cent to U.S. $1.7 million, citing the impact of the U.S.-led coalition forces' invasion of Iraq since last month.
"The decline was due to the fact that most of LGEIN's exports were shipped to the Middle East," Young Ha Kim, LGEIN president director, said Tuesday.
He said that this month his company's refrigerator and TV set exports to the Middle East were also expected to fall by 8 percent and 18 per cent to $191,000 and $1.6 million, respectively.
"The war is hampering the shipment of our goods. Even our exports to a number of Gulf countries such as Iran and Iraq were totally stopped," he said.
Mr. Kim said LG's TV exports to Europe also were down 40 percent. "Europe as a big market has been very cold and even almost dead to our products," he said.
The recent hike in the world oil price had caused an increase in production costs and commodity prices, and this is feared to reduce the purchasing power of local and international consumers, according to Mr. Kim.
LGEIN's electronics products have a high local content, namely 70 percent, he said adding that 30 percent of the content was imported from South Korea, China, Malaysia, and other Asian countries.
In the face of the war, Kim said his company would expand its market to countries remote from the war zone such as Russia, South Africa, Nigeria, Kenya, and other Asian countries. (Antara)
LG Elec Indonesia Sees Drop in March Appliance Exports
Apr 10, 2003
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