IBM expects lower sales growth this year<\/p>\n
JAKARTA (JP): PT Usaha Sistim Informasi Jaya, distributor of
\nIBM's products and services in the country, expects a lower sales
\ngrowth this year due to the currency crisis.<\/p>\n
The company's president Hari Sulistyono said yesterday
\nsluggish cash flows in the last three months had forced the
\ncompany to revise down the growth target of this year's sales
\nrevenue to 38 percent from 25 percent this year.<\/p>\n
"Our cash flow has been slowing down in the last two to three
\nmonths, because buyers who had agreed to purchase had to delay
\nthe procurements," Hari said.<\/p>\n
He did not disclose the targeted amount of revenue.<\/p>\n
He said the company's revenue during this year's first half
\nwas very promising, but speculative attacks on the rupiah over
\nthe last three months had resulted in lethargic sales.<\/p>\n
This was especially noticeable in the company's hardware
\nsales, where buyers had to delay the procurement of its products
\nbecause of the credit crunch imposed by the government, he said.<\/p>\n
"Many companies which were set to upgrade their information
\ntechnology system had to postpone the actual buying because there
\nwas just no money," he said.<\/p>\n
The central bank has raised the interest rates of its short-
\nterm SBI papers to as high as 30 percent to stabilize the falling
\nrupiah. This has caused deposit and lending rates to skyrocket,
\nmaking bank loans more expensive.<\/p>\n
The rates have been gradually lowered since, but analysts said
\nthey were still too high.<\/p>\n
The rupiah has dropped by over 25 percent against the U.S.
\ndollar since early July.<\/p>\n
The government has also imposed a massive rescheduling program
\non its own projects or state-related projects to cope with the
\ncurrency crisis.<\/p>\n
Hari said the contribution of IBM's hardware sales to the
\ntotal revenue had dropped significantly over the years, due to
\nthe continuing decline in the products' prices.<\/p>\n
Revenue from hardware sales contributed to about 45 percent of
\nthe total revenue, while the remaining 55 percent was made up by
\nsystem services including consultancy, maintenance services and
\nsoftware offered by the company, he said.<\/p>\n
"We produce more sophisticated computers in a larger volume
\nnow compared to 10 years ago, but the prices have also dropped
\nover those years," he said.<\/p>\n
Hari said his company's largest market now was mass
\ncustomization such as the banking industry's Automatic Teller
\nMachine system and the "one of a kind customer" involving
\ncompanies with a specialized system such as the state-owned
\nIndonesian National Aircraft Manufacturer, he said.<\/p>\n
He said the company catered to 14 sectors in the country,
\nincluding banking, manufacturing, government, telecommunications
\nand education. (das)<\/p>",
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