Cheaper security tools enter the market<\/p>\n
Sudibyo M. Wiradji, The Jakarta Post, Jakarta<\/p>\n
The Bali bomb blast, which occurred in November 2001, followed
\nby a host of bomb threats in the following months, prompted many
\nbuilding owners to beef up their security systems.<\/p>\n
The need to adopt proper security systems was also reinforced
\nby the issuance of a Jakarta gubernatorial decree in April 2003
\ncalling on owners of public facilities, including office
\nbuildings, hotels, parking lots, cinemas, amusement centers,
\nshopping centers, restaurants and cafes, to take preventive
\nmeasures against terrorism by applying minimum security
\nstandards.<\/p>\n
As a result, there has been an increase in demand for security
\nequipment, such as access control machines, closed circuit
\ntelevision (CCTV) equipment, security camera surveillance
\nequipment, walk-through metal detectors and inspection mirrors.<\/p>\n
A wide range of security products by different manufacturers
\nis available on the market even though many of them are not
\ndisplayed publicly. Most distributors display their products in
\ntheir showrooms at their offices, while several others store such
\nitems in their warehouses and show them only to prospective
\nclients.<\/p>\n
\"It is unnecessary for us to have a showroom for public
\ndisplay because our business also includes designing, installing
\nand maintaining systems for our clients,\" said Yonky, a marketing
\nmanager for Effresindo Citratama, a local security equipment
\ndistributor.<\/p>\n
Most of the security products are imported from the United
\nStates, the United Kingdom, Japan, Singapore, Taiwan, Korea and
\nChina.<\/p>\n
The prices of such products vary, depending on the
\nmanufacturer, product specification and design. For a CCTV
\nsystem, for instance, the prices range between Rp 2.5 million and
\nRp 300 million. This includes installation and a one-year
\nmaintenance fee.<\/p>\n
However, with the flood of electronic security products from
\nChina, customers can now find a CCTV unit for around Rp 200,000
\nin the Glodok Electronics Center in Kota Chinatown, Central
\nJakarta.<\/p>\n
\"Many electronic security products made in China are flooding
\nthe market and they are being sold at lower prices,\" another
\ntrader said.<\/p>\n
Even though current demand is not as high as it was two years
\nago when bomb threats were everyday occurrences, security
\nequipment distributors still report solid growth in their sales.<\/p>\n
PT Indolok Bakti Utama, a major security equipment
\ndistributor, for instance, has enjoyed an average 17 percent
\nannual increase in demand for security products like access
\ncontrol machines, alarms and CCTV.<\/p>\n
\"We are seeing increased demand for favorite security products
\nlike finger print readers of more than 17 percent,\" said the
\ncompany's president director, Hindra C. Kurniawan.<\/p>\n
PT Teknodev Inti Utama, another established distributor in the
\nsecurity industry, has also been enjoying significant growth in
\nits sales. The company booked a 15 percent increase in its sales
\nlast year.<\/p>\n
One type of security equipment that is now increasingly
\npopular among companies is finger print readers. A finger print
\nreader is a machine used as part of an employee check-in system.<\/p>\n
More companies are turning to finger print reader when it
\ncomes to employee attendance because using finger prints is more
\nefficient than using magnetic cards.<\/p>\n
\"A finger print reader can take over the work of a human
\nresources officer,\" said Landy Tjie, an assistant marketing
\nmanager for PT Datascript.<\/p>\n
The good prospects for the security equipment business has
\nencouraged more companies to venture into the field.
\nConsequently, established players like PT Indolok Bakti Utama, PT
\nTeknodev, PT Cisco Mas, PT Datascript and PT Effresindo Citratama
\nare facing tougher competition from new players, which mostly
\noffer cheaper products.<\/p>\n
But the major players say that the flood of cheaper security
\nequipment will not significantly affect their business due to
\ntheir different market segments. Most of the established security
\nequipment distributors sell their products to multinational
\ncompanies or banks.<\/p>\n
\"They will choose particular brands with good quality, which
\nthey are familiar with, and besides, security systems are for
\nlong-term use,\" said Yonky of Effresindo Citratama.<\/p>\n
While the market for security products for buildings and other
\nvital facilities is enjoying good growth, the market for products
\nfor private household security remains weak despite major
\npromotional campaigns.<\/p>\n
\"Even though more people may be aware of security systems,
\nmany are still reluctant to use such systems due to financial
\nconstraint,\" said Charles Aryopati, the director of Teknodev Inti
\nUtama.<\/p>\n
Besides, most Indonesian people are not familiar with using
\nelectronic security systems as a way to protect their homes.
\n\"Most Indonesians are more accustomed to protecting their houses
\nby erecting high iron fences rather than installing an electronic
\nsecurity system,\" he added.<\/p>\n
Thus, it may take some time yet before there is a real demand
\nfor security equipment from private households.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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