Apkomindo calls for import tariff cuts
Apkomindo calls for import tariff cuts
The Jakarta Post, Jakarta
In an attempt to encourage Indonesians to assemble more
computers in Indonesia, the government must cut import tariffs on
computer components, the Indonesian Computer Entrepreneurs
Association (Apkomindo) said Wednesday.
Apkomindo chairman Hidayat Tjokrodjojo said current tariffs of
between 5 percent and 20 percent on imported components
discouraged players from making new local brands.
"Computer assembly is not popular here yet due to the high
tariffs on imported components," he told The Jakarta Post after
the opening of a five-day computer exhibition.
The government does not impose tariffs on imported computer
sets, Hidayat said.
"The different tariffs on computer sets and computer
components have driven industry players to import computers,
rather than assemble them here."
Hidayat said the prices of domestically assembled products,
known as generic computers, were about 20 percent cheaper than
imported sets.
"That is because generic computers do not need much money for
marketing."
Among the generic computers sold with national brands are
Zyrex, Mugen and Reliant. Others have no brand names.
The association predicted computer sales to increase by 20
percent this year to 720,000 units.
The expected increase in sales was due to the strengthening of
the rupiah against the U.S. dollar.
The implementation of e-government by some provincial
administrations is expected to support the increase in computer
sales this year.
E-government is a breakthrough for regional administrations to
promote their services as communication can be conducted online.
People can also get basic information about their regions.
In 2002, the sales of desktop computer sets in Indonesia was
estimated at about 600,000 units and laptops at about 60,000.
The association said that branded desktop computers, like
Hewlett-Packard and IBM, contributed about 40 percent to last
year's sales of desktop computers. Generic brands contributed the
remaining 60 percent.