Global Business Guide Indonesia

Panggung Electric Citrabuana Panggung Electric Citrabuana Panggung Electric Citrabuana Panggung Electric Citrabuana Panggung Electric Citrabuana Panggung Electric Citrabuana Panggung Electric Citrabuana Panggung Electric Citrabuana
Panggung Electric Citrabuana | Mr Ali S. Oentaryo
Mr Ali Soebroto Oentaryo

Indonesia offers numerous investment opportunities including for consumer electronic goods and other market segments which we are excited to continue developing

Mr Ali Soebroto Oentaryo, President Director

Established in 1970, PT Panggung Electric Citrabuana has a long history as a leading electronics manufacturer in Indonesia. What more can you tell us about the company’s background and its strategies going forward?

The early days of our establishment was our golden time with high market demand complemented by knowledge sharing of technological advancements as part of our partnership with JVC Kenwood (JVC). Once we finalised the partnership with them, we began construction work of our factory which served as the foundation from which we were able to grow as a business. To date, we specialise in electronics and electronic-related products, and employ approximately 1,800 staff members.

In line with progress in Indonesia, the government has imposed new and updated regulations on foreign stakeholders, but we have survived the current market characterised by the growing presence of international brands. Our company and Polytron are local brands that have thrived despite tougher competition and our success in this regard can be attributed to strong research and development centres as well as a dedication to taking advantage of new opportunities for growth.  Consumer demand is expected to rise by 10-20% and we strongly support alliances and cooperation with multinational companies to elevate our brand name. Indonesia recently issued new regulations in support of manufacturing technology products locally and taking into consideration Indonesia’s large number of mobile users, we view this as having considerable potential for new business ventures.

Indonesia has in recent years seen an unprecedented rise of the middle class as well as a significant increase in consumer purchasing power. What is your outlook for the electronics goods industry and how does Panggung Electric Citrabuana plan to maintain competitiveness in a market dominated by international corporations?

Consumer demand for electronics has remained relatively consistent in Indonesia since 2013 despite occasional slowdowns these past few years. Currently there is an overwhelming presence of Korean and Japanese companies in the market, but local electronic brand names still have room to succeed in selected countries. Partnering with overseas companies is a key strategy to remain afloat in the electronic goods industry while also strengthening our brand name.

Moreover, Indonesia has seen a massive growth in demand for telecommunication services projected to overtake the purchase of electronic gadgets and products. As such, our company has diversified its capabilities to include ICT product manufacturing to keep up with rising international competition.

The presence of the ASEAN-China Free Trade Agreement and the upcoming ASEAN Economic Community is set to bring about increased trade interactions between Indonesia and other countries. What is your outlook for the company’s export activities?

We have a good background in exports dating back to our launch and production of magnetic tapes and wooden television stands, for which we found significant success distributing to clients in Japan, Australia, and several European countries.

In 2005, our import-export ratio individually reached about 50% with the domestic market maintaining a slight lead.

Due to the on-going depreciating Rupiah and high labour costs, export activities have become more challenging for our company, however, we remain optimistic in stimulating additional trade growth by redefining our strategy and expanding our product market into other segments such as wooden television stands. In doing so, our business will not have to rely on one specific product hence sustaining a strong level of competitiveness. In the future, we will continue to focus on our company’s key markets including Japan and Australia for improving exports.

What can you tell us about your company’s new products and future product innovations?

Since the 1990s, we have ushered several technological advancements incorporated within our television products. Throughout our company’s progression, we have installed distinct features to our TV products including an SMS feature capable of exchanging text messages among peers with SMS feature TVs, to fixed line phones with a similar SMS feature, as well as with mobile phones. Other innovations include a television which can indicate regarding Indonesia’s often unstable voltage and power flow capacity and alert users when the safety threshold for a rise or decline in voltage has been surpassed. Following on from the occurrence of a blackout, this product via an on-screen command suggestion also reminds the user to check other electrical equipment in the house after the outage.

Indonesia is projected to witness exponential growth of foreign investors in the country, and the electronics industry is a highly appealing market for investment. How is Panggung Electric Citrabuana positioned towards working with international investors and foreign entities seeking an experienced local partner in Indonesia?

Our company is pleased to have successfully navigated past the 1997 Asian financial crisis and has since then focused on becoming a world class company. We maintain good corporate governance, solid management and productivity management in order to achieve that goal. The company’s capabilities with regards to imports, procurements, incoming inspection processes, manufacturing capacity, distribution chains, and after-sales services has enabled us to work with companies such as Unilever in the past. They used our after-sales services after the launch of their Pureit product where we also offered our distribution services in our 15 branch offices.

Going forward, as previously mentioned, our company is open to forming partnerships with multinational electronics brands to strengthen our brand name in the local and international markets.

As a final message, what would you like our readers at GBG Indonesia to remember about Panggung Electric Citrabuana?

Indonesia offers numerous investment opportunities including for consumer electronic goods and other market segments which we are excited to continue developing. The country is in the midst of active projects to repair its infrastructure thus this is the time to start investing in Indonesia.