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Japanese electronics giant Toshiba has chosen Indonesia as the company's regional production hub for liquid crystal display (LCD) television sets and has relocated its Vietnamese factory to Indonesia.

ndonesia will be the only production base for Toshiba LCD TV in Asia and Oceania. Toshiba's company's factory in Vietnam had been relocated to Indonesia to strengthen the LCD TV operation here. It is expected to increase monthly production by about 50 percent this year to 100,000 units. They would not only be sold in Indonesia's growing LCD TV market but would also help meet demand from other Asian countries.

To support this expansion the firm also plans to increase the workforce from 750 to 1,200, he said. Toshiba has invested US$ 156.6 million in Indonesia since it set up shop in 1995 and would expand its television factory in Cikarang with $35 million in additional investment. The expansion would be part of its decision to make Indonesia into its production hub for Southeast Asia.

Indonesian electronics industry was projected to grow faster at 10 percent this year as compared to 7.6 percent last year despite worries over the influx of cheaper electronic products from China following the full implementation of the ASEAN-China free trade agreement in January.

Electronic sales in Indonesia would probably grow by 20 percent this year to Rp 25 trillion in 2010 from Rp 20 trillion in 2009.

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