Problem Solver
    Category: Companies & People By : Sonya Angraini Read : 1950 Date : Tuesday, August 19, 2014 - 07:31:03

    Ahmad Zamroni / Forbes Indonesia

    Multinational Honeywell International’s global sales reached $39 billion last year and Indonesia contributed less than 1%. However, that figure does not mean the company undervalues Indonesia. “We see Indonesia as a very right market,” says President Director Alex Pollack, 52. About 54% of the company’s sales are generated from outside the U.S., which Alex says shows that Honeywell is no longer a company focused solely at the U.S. “We go where the market is,” he says. Honeywell has had an office in Indonesia since 1992, and last year beefed up its operations here to strengthen its commitment to the country.

    He also believes that non-U.S. sales will get bigger. “If we see how the world population is going to grow, most of the growth will be outside the West. It’ll be in emerging markets like Indonesia,” he explains. He adds that Honeywell in Indonesia grew about 12% last year and the company expects to record double-digit growth again this year. “I want the brand to be more well-known and I want the customers to also understand what Honeywell does,” he says.

    Worldwide, Honeywell has a strategy for high-growth regions, in which the company is looking at potential regions to grow its business based on the expected growth in the economy, how well its products fit the market, what the market trend is and the ease of doing business there. Among the places it sees most promising are Brazil, China, India, Indonesia, Mexico, Russia and Turkey. 

    Alex reiterates that Indonesia is important in several ways. First, the Honeywell brand has become more well-known in the country, and second, the country also serves as a talent base. “This is an excellent place for our products and also a great place for people,” he says. Honeywell now has offices in Jakarta and Surabaya, as well as three manufacturing facilities in Batam, Bintan and Purwakarta. To make products more suitable for Indonesian market, Honeywell has also set up an engineering center in Surabaya.

    Honeywell in Indonesia has a wide range of businesses, from petroleum refining to bulletproof vests. Alex notes that the biggest products are those used by the energy industry—Honeywell equipment produces around 90% of all the gasoline and 60% of all the diesel fuel in Indonesia. “Back in 1970, we were the designer of refineries here and Pertamina was one of our biggest customers,” he says. Aerospace technologies are another important sector. The company’s aerospace technologies have been adopted by civil aviation and military customers in Indonesia. Business jet operators have also utilized Honeywell’s products such as radars and collision alert systems.