Tue, 29 Mar 2011
From: The Jakarta Post
By From: The Jakarta Post, Jakarta
Local computer manufacturers have urged the government to scrap import duties on IT components, as they are competing against imported finished products from countries that have free-trade agreements with Indonesia, particularly China.

Indonesian Computer Entrepreneurs Association (Apkomindo) chairman Suhanda Wijaya said the government should adjust its policy on component imports to provide a more level playing field for local computer manufacturers.

“[The present condition] has hampered growth in the local [computer] manufacturing industry,” Suhanda said Monday as quoted by tempointeraktif.com.

Suhanda also said the government regulation that stipulates that at least 40 percent of the components used in locally manufactured products must be locally manufactured was unfair. This could only be achieved by big players, considering the level of investment required, he said.

Indonesian Chamber of Commerce and Industry (Kadin) information technology sector chief Didie W. Soewondho supported the Apkomindo demand, adding that scrapping the 10 percent import duty on components would give a huge boost to the competitiveness of local IT manufacturers.

Didie said the free-trade agreement between ASEAN countries and China had resulted in a reduction of profit margins as manufacturers had resorted to budget-tightening in a bid to stay afloat.

Last year, Indonesia sold up to 3.8 million computers, with notebooks controlling 70 percent of the market. Computer sales are expected to grow by 30 percent to 5.3 million units this year, while local manufacturers are likely to control between 10 and 15 percent, as in previous years.



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