Electronics sales could triple this year<\/p>\n
Adianto P. Simamora and Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
Several major electronic makers predict sales of electronics
\nin the country to triple this year as a result of tax breaks and
\nthe strengthening of rupiah, which have led to a significant drop
\nin the prices of electronic goods.<\/p>\n
Such an ambitious target, set by PT Samsung Electronics
\nIndonesia by PT LG Electronics Indonesia, was prompted by
\noptimism of strong domestic consumption.<\/p>\n
Public consumption, which has been the backbone of the
\ncountry's economic growth over the past several years, has been
\nexpected to become the main engine for this year's target of 4
\npercent economic growth.<\/p>\n
Lee Khang Hyun, marketing director of Samsung, said the drop
\nin price was the main factor encouraging people to purchase more
\nelectronic goods this year.<\/p>\n
The country's electronic manufacturers cut the prices of their
\nproducts by between 15 to 20 percent in February following the
\ngovernment's decision to cut luxury taxes on electronics.<\/p>\n
Prices have further dropped by between 5 percent and 10
\npercent lately due to the strengthening of the rupiah against the
\nU.S. dollar.<\/p>\n
Analysts have predicted that the rupiah would continue to
\nstrengthen for the next several months.<\/p>\n
\"This is a good chance for us as we can further cut the prices
\nof our products and the strengthening of the rupiah has thus far
\nnot yet hurt the exports of electronics,\" Lee said.<\/p>\n
Samsung expected to book some US$150 million from the sale of
\nconsumer electronic goods, such as television sets, refrigerators
\nand air conditioners on the local market this year, compared to
\nlast year's figure of $80 million. Meanwhile, sales from
\ninformation technology goods are expected to reach $230 million.<\/p>\n
Its exports are projected to reach $850 million.<\/p>\n
\"To reach the target, Samsung will introduce a number of new
\nproducts this year. We will also spend some US$20 million on a
\nmarketing campaign,\" said Lee.<\/p>\n
Meanwhile, LG has predicted its sales in the country would
\nreach some $300 million this year, compared to $200 million in
\n2002.<\/p>\n
Sung Kyun, Marketing manager LG Electronics said that the
\ncompany made such an optimistic target after seeing the high
\ninterest of consumers in buying locally assembled products
\nfollowing the drop in prices.<\/p>\n
\"People should prefer buying local products over the smuggled
\nones as the price gap between them has narrowed,\" Sung told The
\nJakarta Post.<\/p>\n
He said luxury tax cuts had made locally made products more
\ncompetitive against both the illegally imported goods and cheaper
\nimported products from China.<\/p>\n
The increasing trend in the sale of consumer products was not
\nonly experienced by television and refrigerator vendors.<\/p>\n
The Indonesia Computer Business Association (Apkomindo)
\npredicted computer sales were expected to increase by 20 percent
\nthis year to 720,000 units from 600,000 unit last year.<\/p>\n
\"Although currently computer sales are slowing a bit, we still
\nexpect them to rise again starting this month,\" Hidayat
\nTjokrodjojo, chairman of the association told the Post.<\/p>\n
He said rather than causing an increase in sales, the
\nstrengthening of the rupiah has apparently today slowed sales as
\nconsumers preferred holding their money and waiting for the
\nlowest prices of the imported consumer goods.<\/p>\n
Meanwhile, the Indonesia Motorcycle Association (AISI)
\npredicted that sales of motorcycles could reach 2.6 million units
\nin 2003, from last year's of 2.3 million units.<\/p>\n
\"Demand for motorcycles is still high, the industry players
\nare now offering incentives to attract consumers,\" Ridwan Gunawan
\npresident of AISI said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/electronics-sales-could-triple-this-year-1447893297",
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"sponsor": "Okusi Associates",
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