Locally brands dominate domestic market<\/p>\n
I. Christianto, Contributor, Jakarta<\/p>\n
Many parties prefer to purchase locally assembled personal
\ncomputers (PC), which are popularly known as jangkrik (cricket).<\/p>\n
People have their own reasons for buying locally assembled
\nPCs, normally for their down-to-earth prices compared to top,
\nfamous brands.<\/p>\n
Behind the fact of fast-selling locally produced PCs, there
\nare anecdotes about these PCs are called crickets. The term
\njangkrik, in certain parts of Indonesia, is a familiar term
\nshouted when people get upset, for example if their PC hangs.<\/p>\n
This is understandable, as the low quality often causes such
\nPCs to hang during operation.<\/p>\n
Some people say such low-cost PCs also make noises like
\ncrickets. The term also is used locally for unbranded electronic
\nitems.<\/p>\n
Other people, however, believe crickets can make big leaps,
\nmeaning that such PCs can be easily upgraded for much better
\nperformance.<\/p>\n
Despite the anecdotes, locally made computers are in demand in
\nthe domestic market.<\/p>\n
Junaidi Aris Lee, a market analyst for the International Data
\nCorporation (IDC) Asia Pacific in Jakarta, said that locally
\nassembled PCs dominated the local market, with about 60 percent
\nmarket share in 2001.<\/p>\n
"The figures have remained stable in recent years as the
\nquality becomes more competitive. In the fourth quarter of 2001,
\nthere were 132,000 (PCs) sold and 66 percent of them were locally
\nassembled," he said.<\/p>\n
Interestingly, according to Junaidi, some 70 percent of the
\nbuyers were companies or institutions. This means locally
\nassembled PCs are not just popular with individuals, but also
\nwith businesses.<\/p>\n
He said total PC sales this year were expected to reach some
\n566,000 units, a significant increase from 482,000 units in 2001.
\nIn 2000, the figure was 416,000 units, he added.<\/p>\n
"The market for the PC has recovered after plummeting in the
\nyears following the country's financial turmoil. The banking,
\ntelecommunications as well as the oil an gas sectors have showed
\nsigns of recovery, which has had a positive impact on the PC
\nmarket," he said.<\/p>\n
The Indonesian Computer Dealers Association (Apkomindo)
\nestimates PC sales totaled 279,000 units in volume or about
\nUS$334.8 million in value in 1999, after plunging to 74,000 units
\n(worth $88.8 million) in 1998. This was a big improvement but
\nstill far from the precrisis level of 392,000 units ($470.4
\nmillion) in 1997.<\/p>\n
Computer sales are significantly affected by the fluctuation
\nof the local currency against the dollar. When the rupiah
\nweakens, PC prices instantly increase. To save themselves from
\nthe threat of financial loss, local vendors usually set PC prices
\nin American dollars. Fluctuations in the rupiah is a computer
\ndealer's worst nightmare, as more than 80 percent of the computer
\ncomponents in a PC are imported.<\/p>\n
Meilanie Huda, the marketing manager of PT Berca Cakra
\nTeknologi, a local company which produces the Relion computer,
\nagreed that the quality of locally made PCs had become more
\ncompetitive with top overseas brands.<\/p>\n
"When we talk about PCs, we will find about the same quality
\nas an electronic device. The local names are also equipped with
\nthe same components such as the Pentium 3 or Pentium 4 processor,
\nIntel motherboard. The difference is the sales support and after-
\nsales service," she said.<\/p>\n
She said with good sales support and service, locally
\nassembled PCs would be able to grab a greater market.<\/p>\n
"The market is increasing. Even with more producers, the
\ncompetition will remain slow," she said.<\/p>\n
Berca began producing and marketing Relion in October last
\nyear. There are four series of the Relion -- Credo, Ventura,
\nPride and Premio -- which aim at different segments of the
\nmarket, from the beginner, small businesses, professionals and
\nlifestyle purchasers.<\/p>\n
"Prices start at between $500 and $1,044 per unit, depending
\non the type and additional features," said Meilanie<\/p>\n
Besides Berca, local companies offering PCs include Zyrex,
\nMugen, Garuda and Wearnes. They are now able to compete with top
\ninternational brands such as IBM, Acer and Compaq.<\/p>\n
Yulia Andriani, a member of the marketing staff at PT Oriental
\nKomputer Bahtera, which has manufactured Garuda PC since 1983,
\nsaid that both local and domestic computer makers aimed at
\ncorporate buyers.<\/p>\n
"PC makers still regard corporate businesses as more lucrative
\nthan individual buyers. When the economy weakens, as happened in
\nthe last few years, PC makers will still target corporate
\nbusiness on a rental system," she said.<\/p>\n
Eventually, there are "real" locally assembled PCs sought by
\nindividuals for their reasonable prices and good performance.
\nThese are custom-made to order by PC shops.<\/p>\n
Just go to Mangga Dua Mal or Gajah Mada Plaza, two shopping
\ncenters in the capital's Chinatown. Many PC stores offer low cost
\nproducts, as they are really "homemade". There are also vendors
\nat other places, including Mall Ambassador and Ratu Plaza in
\nSouth Jakarta.<\/p>\n
The rapid development in information technology has created
\nnumerous innovative devices that have helped lower prices
\nfurther. Processors, memory chips, synchronous DRAM and other
\nequipment are now offered at much lower prices, causing PC prices
\nto drop.<\/p>\n
Locally made PCs offered by vendors may contain various
\ncomponents from different makers, which may not operate in
\ncomplete harmony. For instance, a good processor should be
\nmatched with a proper Random Access Memory (RAM). When they do
\nnot match, there will most likely be a blockage in the flow of
\nthe data in the PCs.<\/p>\n
In addition to a processor and RAM, there are other important
\ncomponents including the motherboard, Video Graphic Adapter
\n(VGA), hard disc, floppy disc and sound card which should ideally
\nmatch each other. When completed, the device, which is called a
\nCentral Processing Unit (CPU), must be equipped with a monitor,
\nkeyboard, mouse and other accessories to become a PC. These items
\nshould also match each other. Based on the possibility of assembling a PC with various
\ncomponents, prospective users can ask for a particular PC with
\ncertain specifications for the lowest price. If this happens, it
\nis likely locally assembled PCs will grab an even greater share
\nof the market in Indonesia.<\/p>\n
Here are some important tips in buying locally assembled PCs:<\/p>\n
1. Before buying one, you must first assess what will you do
\nwith the PC. A PC has many accessories or features such as a
\nmicrophone or webcam that you don't have to install, which will
\nlower the price.<\/p>\n
2. If you really want some features, select the most useful,
\nincluding CD-RW drive, CD-ROM drive, DVD-ROM drive, removable
\nmedia-drive, graphic card AGP, voice card, network card, modem
\nand so on.
\n3. Check and test the body case, power supply, keyboard, mouse,
\noperation system, cooler fan and monitor. Also find out how the
\nfloppy disc drive and hard drive work.
\n4. Check the motherboard. It should ideally match with the
\nprocessor.
\n5. Check the memory to make sure it matches with the RAM type and
\nmotherboard speed.
\n6. Can the PC be upgraded? Old components may not be match with
\nnew components.
\n7. Check the software, is it original or illegal? The U.S.-based
\nBusiness Software Alliance (BSA) estimates more than 80 percent
\nof PC software sold in Indonesia is pirated.
\n8. Buy PC at shops owned by people you know well. This is to
\navoid the possibility of being sold a PC with used components.
\n9. Ask for a warranty and know the type of after-sales services
\nyou are entitled to.<\/p>",
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