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Mitsubishi Electric Establishes Sales Company in Indonesia

Targeting business expansion in this promising market

TOKYO, December 5, 2012 - Mitsubishi Electric Corporation(TOKYO: 6503) announced today that it has established a sales company in Indonesia, named PT. Mitsubishi Electric Indonesia (Mitsubishi Electric Indonesia), to handle sales of air-conditioning systems, home appliances and factory automation (FA) beginning in March 2013. Combining sales from these three businesses with existing manufacturing and sales for automotive equipment and elevators & escalators, the Mitsubishi Electric Group aims to raise consolidated annual sales in Indonesia to some 23 billion yen, or 300 million US dollars, by the fiscal year ending in March 2016.

The new company will help to strengthen links with current distributors and sales agents for expanded business in Indonesia, a priority market for Mitsubishi Electric.

Jaya Building, location of PT. Mitsubishi Electric Indonesia

Jaya Building, location of PT. Mitsubishi Electric Indonesia

Name PT. Mitsubishi Electric Indonesia
Location Headquarters:Jakarta
President Director Takeshi Terada
Paid-in capital 60 billion Indonesian Rupiah (approximately 500 million yen)
Ownership Mitsubishi Electric Asia Pte. Ltd. (based in Singapore): 70%
Mitsubishi Electric Corporation: 30%
Registration November 5, 2012
Start-up (plan) March 1, 2013
  • 1. Sales of residential and commercial air-conditioning systems
  • 2. Sales of home appliances, including refrigerators
  • 3. Sales of FA products, plus technical support and system proposals
  • 4. Business support for marketing and tax, legal and labor matters
Employees Approximately 60 (fiscal year starting April 1, 2013)

1. Air-conditioning systems sales
Demand for residential air conditioners is expected to grow due to rising personal incomes. Targeting middle- to high-income earners, Mitsubishi Electric Indonesia will focus on value-added models offering high energy efficiency. Commercial demand is also growing due to a boom in construction of office buildings and hotels. The company will offer highly efficient "City Multi" air-conditioners and other products that meet diverse needs.
2. Home appliance sales
Mitsubishi Electric Indonesia will focus on expanding appliance sales networks, in addition to providing shop-front support for sales agents and strengthening sales channels with enhanced training programs. Two- and three-door refrigerator models will be marketed to middle- and high-income households.
3. FA equipment sales, technical support and system proposals
Personnel will be added for stronger sales, marketing and technical services. Sales growth will focus primarily on manufacturers and parts suppliers in the automotive sector, where local production is increasing. New tie-ups with system integrators will strengthen business for energy-efficient infrastructure, such as rail transport and water purification, as well as factories and offices.
4. Business support for other businesses
Investment in electricity and transportation infrastructure, such as the Jakarta subway, is expected to increase. To accelerate business in these fields, Mitsubishi Electric Indonesia will provide related group businesses with market information and business support for tax, labor and legal matters.

Other Mitsubishi Electric Group Companies in Indonesia
PT. Mitsubishi Electric Automotive Indonesia
Headquarters: Bekasi
Ownership: Mitsubishi Electric Corporation: 100%
Business: Manufacturing and sales of automotive equipment (electrical components)
PT. Mitsubishi Jaya Elevator and Escalator
Headquarters: Jakarta
Ownership: Mitsubishi Electric Corporation: 41%
Mitsubishi Electric Building Techno-Service Co., Ltd.: 24%
Mitsubishi Corporation: 15%, Jaya: 20%
Business: Manufacturing, sales, installation and maintenance of elevators & escalators

Indonesia boasts the world's 18th largest GDP and the largest ASEAN economy. The country has the world's fourth largest population at 240 million, more than 40% of which is under 19 years of age. Domestic demand is expected to spur high rates of growth due to large-scale infrastructure projects and commercial building construction, attracting general contractors and manufacturers to enter the automotive and other sectors.