Alfian, The Jakarta Post, Jakarta | Mon, 07/19/2010
Global giant DuPont expects its sales and investment in Indonesia to at
least double by 2015, citing positive progress in the local economy.
DuPont, an industrial materials producer, has been operating locally for
35 years and has invested more than US$100 million in Indonesia during
that time.
The company estimates its sales in Indonesia will reach around US$200
million this year, DuPont Asia Pacific Limited president Carl J. Lukach
said.
“My hope is to more than double our business [in Indonesia] within five
years. More than double in terms of sales, employment and investment,”
Lukach told The Jakarta Post during a recent interview.
He added that the company had set an optimistic target for its
Indonesian operations, because of the positive outlook in the local economy.
“The government policy seems to be going well. I am very pleased to see
the government’s focus on the removal of corruption from the system.
This is a very important thing for DuPont in doing business,” Lukach
said, adding that Indonesia was also ideal for DuPont to grow its
business because it was nearly self-sufficient in terms of raw materials
and energy, and less dependent on global economic factors, and also had
a growing skillful labor force.
According to the company’s reports, DuPont’s sales in emerging markets
grew by 80 percent over the past five years.
In 2008, DuPont booked $9 billion in sales in emerging markets,
accounting for nearly one-third of its total sales for 2008, which
totalled $30.5 billion. Because of the global crisis, DuPont sales in
the emerging market dropped by 10 percent in 2009, but the company
estimates its emerging market sales will rebound and reach approximately
$13 billion by 2012.
About 40 percent of the $200 million in sales expected to come from
Indonesia this year is projected to come from DuPont’s
agriculture-related products.
PT DuPont Indonesia president director George Hadi Santoso said his
company had a big opportunity to expand its agriculture business, citing
the example of corn plantations. According to George, of the total corn
plantation area in Indonesia, only one-third of it was using hybrid
seed, while the remaining two-thirds were using traditional seed.
“Two-thirds of the area present us with an opportunity to convert from
traditional seeds to hybrid seeds,” he said.
DuPont is often referred as the world’s third-largest chemical producer,
but Lukach said the contribution of its chemical businesses to its total
sales had decreased to between 15 and 20 percent.
In Indonesia, DuPont operates 11 of its 13 business lines. The company’s
top-five businesses in Indonesia are Pioneer Hi-Breed (producing hybrid
corn and rice seeds), crop protection products, packaging and industrial
polymer, Titanium Dioxide and Protection Technology. DuPont runs four
manufacturing facilities in Indonesia. Its crop protection products
plant is in Sidoarjo and Pasuruan, its Hybrid Parent Corn Seed plant is
in Malang, and its Powder Coating plant is in Cikarang.
URL: http://www.thejakartapost.com/news/2010/07/19/dupont-set-double-ri-busin...