[Executive Corner] Partnering in Progress: 35 Years of Growth With Indonesia
As we celebrate LG’s 35-year journey in Indonesia, I am filled with both gratitude and optimism for what lies ahead. Our presence in this vibrant nation has been more than a business story – it has been a partnership built on shared growth, innovation and resilience.
Aligning With Indonesia’s Industrial Vision for Sustainable Growth
Indonesia’s manufacturing sector continues to be a vital driver of national progress, contributing between 17 and 20 percent of the country’s GDP and employing more than 20 percent of the workforce. The Industrial Services Roadmap 2025–2045 sets out a bold vision to expand industry, create future-ready jobs and integrate technology with sustainability – an ambition that closely aligns with LG’s own values and long-term direction.
Vice Minister of Industry Mr. Faisol Riza highlighted that in 2024, Indonesia’s Manufacturing Value Added (MVA) reached USD 265.07 billion (Rp 4,349 trillion), ranking 13th globally and first in Southeast Asia. This strong performance reflects the growing competitiveness of Indonesia’s industrial base and its crucial role in ensuring economic resilience.
Further underscoring this momentum, the Industrial Confidence Index (IKI) for September 2025 stood at 53.02, signaling continued expansion across 21 of 23 manufacturing subsectors, which together account for nearly 98 percent of non-oil and gas manufacturing GDP. Optimism about the coming months remains high – driven by confidence in policy direction, innovation and industrial strength.
Over Three Decades of Milestones: Building a Fully Integrated Operation
At LG, we are proud to have grown alongside Indonesia, becoming a trusted partner in its industrial and technological transformation. Over the past three and a half decades, we have invested in local capabilities, championed innovation and embedded sustainability into every aspect of our operations – all to enhance lives and strengthen industries.
Our manufacturing facilities in Tangerang and Bekasi produce a wide range of products, from refrigerators and washing machines to monitors, commercial displays and televisions – serving both domestic and regional markets. Last month, we expanded our production capabilities through a strategic partnership in air conditioner manufacturing, operated by a partner company. This initiative reflects our ongoing commitment to advancing Indonesia’s industrial ecosystem.
With a network of over 190 service centers across the archipelago and strong collaborations with local distributors and partners, we ensure that LG products and services reach customers in every region.
Today, our locally self-sufficient operation – spanning R&D, manufacturing, marketing and customer care – empowers more than 4,000 local talents and supports national priorities such as Making Indonesia 4.0 and the Industrial Services Roadmap. Together, we are driving continuous innovation, operational excellence and customer satisfaction.
Beyond Business: Empowering Communities and Driving Inclusive Growth
Our commitment to Indonesia goes well beyond business. Through our CSR platform, LG Loves Indonesia, we focus on sustainability, education and community well-being to create meaningful and lasting impact.
Under LG Loves Green, we promote energy-efficient living and environmental responsibility – planting 32,000 trees and supporting recycling initiatives for fabric, food waste and e-waste to raise public and youth awareness.
LG Loves Children enhances early childhood literacy in partnership with the Ministry of Education and Culture, publishing and distributing two series of LG Children’s Books nationwide. We also established three libraries in low-literacy regions, each offering more than 350 curated titles to inspire learning.
Through LG Loves School, we help vocational students build practical skills for future careers by upgrading school labs with LG products and training tools.
Meanwhile, LG Loves and Cares supports local communities through initiatives like Lebaran Sehat, which provides food packages during festive seasons, as well as product donations that improve daily living standards.
Each of these initiatives reflects our belief that true progress must be inclusive – empowering individuals and uplifting communities across Indonesia.
Looking Ahead: A Shared Future of Sustainable Growth
As we look toward the future, LG’s dedication to Indonesia remains steadfast. We deeply value the trust and partnership we have built with the government, industry peers and the Indonesian people. Our approach – anchored in local manufacturing excellence, technology transfer and environmental stewardship – demonstrates our long-term commitment to inclusive and sustainable growth.
Together, under the shared spirit of Life’s Good, we will continue to create a better, more sustainable tomorrow for all.
Contributed by Ha Sang-chul, president of LG Indonesia
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