Indonesia's computer and IT Technology 1998 landscape<\/p>\n
By Zatni Arbi<\/p>\n
JAKARTA (JP): Hopes were already very low when we entered
\n1998, the Year of the Tiger. In January, computer store owners at
\nGlodok Plaza's Computer City were already unable to print their
\nprice lists, as prices changed several times a day due to the
\nrupiah's wildly fluctuating exchange rate against the U.S.
\ndollar. Some of the stores were already out of business by
\nChristmas of the preceding year. The survivors were unable to
\nstock new products and they began to quote prices in U.S dollars
\nbecause of the volatile rupiah.<\/p>\n
In light of the deepening economic crisis, market research
\nInternational Data Corp. (IDC), which had previously predicted
\nthe sales of PCs throughout 1998 to reach 550,000, for example,
\nhad early on revised it to less than 400,000. As we near the end
\nof this year, however, IDC reported that only about 150,000 PCs
\nhave been sold in Indonesia, most of which were locally assembled
\nsystems. Compare that to 1996's figure, which stood at 450,000.<\/p>\n
As people's need to use computers continued to increase while
\ntheir buying power diminished and the prices of new systems
\nbecame out of their reach, used computers and notebooks suddenly
\nbecame much in demand. Computers, printers and supplies from
\nliquidated banks and companies were the main targets. Similarly,
\nas people frantically tried to save money or could not afford the
\nmore expensive original products, the sales of refilled
\nconsumables, such as printer toner and ink, suddenly had a huge
\nmarket. A number of third-party vendors, including Alfa Prima
\nAnugerah, Data Print and Dwi Indah began offering their ink and
\ntoner cartridge products that could be up to 60 percent cheaper
\nthan the original.<\/p>\n
The biggest blow to local computer trade, however, took place
\nduring the devastating May 13 and May 14 riots, as the major
\nsites for computer-trade activities in Jakarta were looted and
\nburned by mobs. The incident virtually wiped out the already
\ntottering businesses of many computer store owners.<\/p>\n
The impact was immediately felt throughout Indonesia, as these
\ncomputer trade centers -- Computer City in Glodok Plaza, Plaza 21
\nand Orion Plaza -- had been the main source of computer goods for
\ntraders from other cities and regions in the country. For more
\nthan two months, computer users were helpless, as they did not
\nknow where to go for computer parts or repair services.<\/p>\n
Slowly, some of the vendors -- assisted by their principals
\nrather than by government aid -- got back on their feet. The
\nfirst computer stores began to reappear in Golden Truly Complex,
\nJl. Fatmawati, followed by those in Gajah Mada Plaza, Mangga Dua
\nITC and Mangga Dua Mall. Helped by vendors such as Intel and HP,
\nthe computer traders kicked off by organizing computer shows in
\nthese new locations with a one-month Computer Fair in Gajah Mada
\nPlaza. Today, more of the newly opened computer stores can be
\nfound on the ground floor of Gajah Mada Plaza, the upper floors
\nof Mangga Dua Mall and in the shopping arcade of Dusit Mangga Dua
\nHotel.<\/p>\n
Even today, after these computer trade centers have more or
\nless established themselves, the products that the stores carry
\nare still generally limited to the fast-going ones. You may be
\nout of luck if you want to buy more high-profiled products, such
\nas high-end graphics cards from Matrox, for example. If you need
\na top-end product like that one, you may have to especially order
\nit from Singapore and you may be required to make a down payment.
\nThe prices, in this case, are normally quoted in dollars and you
\nmay have to wait for two or three weeks to get the goods.<\/p>\n
Fortunately, for people who are looking for special offers or
\nsecond-hand computer products, the Internet has come to the
\nrescue. Today, many of our Internet service provider (ISP) sites,
\nsuch as www.cbn.net.id and www.pacific.net.id have special pages
\nwhere people can make their offers. The site in CBNNet is one of
\nthe best, as the pages are divided according to the type of
\nmerchandise and you can go to the page that contains offers of
\nelectronic and computer products only. When you are in CBNNet's
\nhomepage, click on Only on CBN, and then click on Trade-o-matic
\nif you want to see what's for sale there.<\/p>\n
In a bid to introduce Indonesian entrepreneurs to the Internet
\nas the new ground for creating new business opportunities or
\npromoting existing ones, big vendors such as Intel Corp., Cisco
\nSystems, HP and IBM took turns organizing seminars on the
\nsubjects of E-commerce and E-business during the second half of
\n1998. E-commerce emphasizes the buying and selling transactions
\nthat happen completely on the Internet, while E-business
\nencompasses all aspects of doing business on-line -- including
\ncommunication with suppliers and distributors.<\/p>\n
In general, it is believed that doing Web-based business is
\nthe way to go when the economic crisis seems to have turned off
\nmost other opportunities.<\/p>\n
Unfortunately, our national information infrastructure
\nproject, the Nusantara 21 (N-21), which we had looked forward to
\nas the means to bring Internet closer to the masses, also
\nreceived a death blow. \"We are not in the position to make any
\nmajor investment in this area in the near future,\" Ginandjar
\nKartasasmita, the coordinating minister for economy, finance and
\nindustry informed the press at a seminar on the development of
\ntelecommunications and information in Jakarta in August.<\/p>\n
The sting of our economic crisis is also felt by the ISPs
\nthemselves, since they still have to pay for the international
\ngateway connections in dollars. Early in 1998, only 16 out of 42
\nlicensed providers were in operation. As the year closes, smaller
\nISPs are transferring their customers to the major ones before
\nthey close their doors for good. Indonesian Internet users are
\nestimated to number 100,000, and clearly there will not be enough
\nbusiness to support these smaller providers.<\/p>\n
As the current century moves toward its end, a major computer-
\nrelated issue has caught public attention worldwide, i.e., the
\ninability of older computer systems to deal with the year 00 in
\ntheir date field. The awareness and fear of the Year 2000 bug are
\nalso on the rise in Indonesia. Yet, because of a lack of
\nattention -- there are obviously more pressing political issues
\nin the agenda of most people currently in the authority today --
\nthe potentially disastrous problem seems to have been put under
\nthe carpet, despite offers from international bodies and other
\ncountries to help.<\/p>\n
Two other things also happened as Indonesia continued to
\nstruggle its in restoring stability and order. First, potential
\ninvestors canceled their investment plans in Indonesia. The
\nlatest investor that decided to move out was Seagate, which had
\nactually planned to invest Rp 10 trillion in the Medan Industrial
\nPark. Their hard-disk manufacturing plant was supposed to become
\nthe largest of its kind in Asia. Seagate has decided to build it
\nin Subic, the Philippines, instead.<\/p>\n
Another significant impact of the prolonged economic turmoil
\nis that we have suffered from a serious brain-drain problem.<\/p>\n
Highly skilled and expensively trained professionals from
\nAstra International, IPTN and other big corporations in Indonesia
\nhave reportedly left the country for better jobs and safer havens
\nabroad. The sad side of the story is, it has cost the country a
\nlot of hard cash to train these people. Edy Prawirohardjo from
\nAstra International, for example, admitted that it had cost his
\ncompany $40,000 to train an SAP specialist, one of those
\nprofessionals very much sought after by international head
\nhunters these days.<\/p>\n
As we step into 1999 and get closer to the next millennium, we
\ncannot help but wonder what other casualties the crisis will
\ncause to our nation. Still, as the computer traders of the old
\nGlodok centers have clearly demonstrated, one should never, never
\ngive up. Happy New Year!<\/p>",
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