Falling rupiah scares away electronics consumers<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The decline of the rupiah against the U.S. dollar has dealt a
\nblow to the country's electronics sector, forcing traders to
\nraise their prices and subsequently resulting in a drop in sales.<\/p>\n
The rupiah slid to Rp 9,065 on Friday, a 4.2 percent fall
\nsince May 5, when the United States' Federal Reserve announced it
\nwas ready to raise its interest rate.<\/p>\n
Several personal computer (PC) and personal data assistant
\n(PDA) vendors interviewed by The Jakarta Post claimed it had been
\nhard to sell a single unit since the rupiah's depreciation.<\/p>\n
Meanwhile, vendors of warranted household appliances and
\nelectronics goods such as refrigerators, air conditioners,
\nwashing machines and stereo systems said they had learned from
\ntheir distributors that prices would increase by around 3 percent
\nstarting June 1.<\/p>\n
\"As for unwarranted products, their prices have increased
\nalongside the rupiah's decline,\" said Joseph, a shop owner at ITC
\nCempaka Mas, Central Jakarta.<\/p>\n
Local electronics traders usually sell warranted and
\nunwarranted products, the latter of which are cheaper and are
\nbelieved to be smuggled.<\/p>\n
The price of an unwarranted PlayStation One console has
\nincreased to Rp 635,000 from Rp 600,000 in the wake of the
\nrupiah's decline, while an unwarranted Sanyo stereo system is now
\nRp 1,025,000, slightly up from last week's Rp 1 million price
\ntag.<\/p>\n
Lee Kang Hyun, chairman of the Electronic and Electrical Home
\nAppliances Industries (GABEL), said should the rupiah remain at
\naround Rp 9,000 next month, its members would increase prices by
\nup to 5 percent.<\/p>\n
Lee, also marketing director of PT Samsung Electronics
\nIndonesia, said GABEL members had been trying to delay a hike as
\nlong as possible, hoping that the rupiah would return to around
\nRp 8,500.<\/p>\n
A PDA vendor, Widhi, said she was unable to sell a single unit
\nof the XDA O2 last week, whereas normally, she sells at least two
\nunits a week. The price of the product had risen to Rp 8 million
\nfrom Rp 7.75 million prior to the drop in the rupiah.<\/p>\n
\"It is a very popular product, but since the middle of this
\nmonth, people stop by only to ask whether the price has fallen
\nyet,\" she said.<\/p>\n
She said customers were very sensitive to the dollar rate and
\nquickly stopped making purchases even at a slight strengthening
\nof the currency.<\/p>\n
She hoped the rupiah would become stable again after the
\npresidential election on July 5, but doubted the increase in the
\ngreenback was due to domestic, rather than foreign, factors.<\/p>\n
\"I heard the rupiah is declining because the U.S. is going to
\nincrease its interest rate,\" she said, adding that the government
\nshould take action immediately to stabilize the local unit.
\n\"Otherwise, the economy will be stuck again.\"<\/p>\n
She said Rp 7,000 to the dollar was good for business, but a
\nsteady rate was more preferable, as it would make it easier to
\nproject sales figures.<\/p>\n
Taroreh, a PC vendor, shared Widhi's concerns, as she had
\nreceived no orders for the last two weeks.<\/p>\n
She is now offering a complete PC package at a base price of
\nUS$500, or Rp 4,550,000, at a rate of Rp 9,100 per dollar. The
\nprice of the package has increased by around Rp 200,000 over the
\npast two weeks.<\/p>\n
The decline has apparently yet to affect the price of cellular
\nphones, with vendors claiming the most influential factor in
\npricing is the balance of supply and demand, rather than the
\ndollar value.<\/p>\n
Tuti, who works at a Nokia boutique, said the price of a Nokia
\n9210 Communicator had risen to Rp 4.75 million from Rp 4.6
\nmillion, but she maintained the hike was due to an increase in
\ndemand.<\/p>",
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