Edited

Edited

I. Christianto
Contributor
Jakarta

Locally assembled products are much more popular

Many parties prefer to purchase locally assembled personal
computers (PC), which are popularly known as jangkrik (cricket).

People have their own reasons for buying locally assembled
PCs, normally for their down-to-earth prices compared to top,
famous brands.

Behind the fact of fast-selling locally produced PCs, there
are anecdotes about these PCs are called crickets. The term
jangkrik, in certain parts of Indonesia, is a familiar term
shouted when people get upset, for example if their PC hangs.

This is understandable, as the low quality often causes such
PCs to hang during operation.

Some people say such low-cost PCs also make noises like
crickets. The term also is used locally for unbranded electronic
items.

Other people, however, believe crickets can make big leaps,
meaning that such PCs can be easily upgraded for much better
performance.

Despite the anecdotes, locally made computers are in demand in
the domestic market.

Junaidi Aris Lee, a market analyst for the International Data
Corporation (IDC) Asia Pacific in Jakarta, said that locally
assembled PCs dominated the local market, with about 60 percent
market share in 2001.

"The figures have remained stable in recent years as the
quality becomes more competitive. In the fourth quarter of 2001,
there were 132,000 (PCs) sold and 66 percent of them were locally
assembled," he said.

Interestingly, according to Junaidi, some 70 percent of the
buyers were companies or institutions. This means locally
assembled PCs are not just popular with individuals, but also
with businesses.

He said total PC sales this year were expected to reach some
566,000 units, a significant increase from 482,000 units in 2001.
In 2000, the figure was 416,000 units, he added.

"The market for the PC has recovered after plummeting in the
years following the country's financial turmoil. The banking,
telecommunications as well as the oil an gas sectors have showed
signs of recovery, which has had a positive impact on the PC
market," he said.

The Indonesian Computer Dealers Association (Apkomindo)
estimates PC sales totaled 279,000 units in volume or about
US$334.8 million in value in 1999, after plunging to 74,000 units
(worth $88.8 million) in 1998. This was a big improvement but
still far from the precrisis level of 392,000 units ($470.4
million) in 1997.

Computer sales are significantly affected by the fluctuation
of the local currency against the dollar. When the rupiah
weakens, PC prices instantly increase. To save themselves from
the threat of financial loss, local vendors usually set PC prices
in American dollars. Fluctuations in the rupiah is a computer
dealer's worst nightmare, as more than 80 percent of the computer
components in a PC are imported.

Meilanie Huda, the marketing manager of PT Berca Cakra
Teknologi, a local company which produces the Relion computer,
agreed that the quality of locally made PCs had become more
competitive with top overseas brands.

"When we talk about PCs, we will find about the same quality
as an electronic device. The local names are also equipped with
the same components such as the Pentium 3 or Pentium 4 processor,
Intel motherboard. The difference is the sales support and after-
sales service," she said.

She said with good sales support and service, locally
assembled PCs would be able to grab a greater market.

"The market is increasing. Even with more producers, the
competition will remain slow," she said.

Berca began producing and marketing Relion in October last
year. There are four series of the Relion -- Credo, Ventura,
Pride and Premio -- which aim at different segments of the
market, from the beginner, small businesses, professionals and
lifestyle purchasers.

"Prices start at between $500 and $1,044 per unit, depending
on the type and additional features," said Meilanie

Besides Berca, local companies offering PCs include Zyrex,
Mugen, Garuda and Wearnes. They are now able to compete with top
international brands such as IBM, Acer and Compaq.

Yulia Andriani, a member of the marketing staff at PT Oriental
Komputer Bahtera, which has manufactured Garuda PC since 1983,
said that both local and domestic computer makers aimed at
corporate buyers.

"PC makers still regard corporate businesses as more lucrative
than individual buyers. When the economy weakens, as happened in
the last few years, PC makers will still target corporate
business on a rental system," she said.

Eventually, there are "real" locally assembled PCs sought by
individuals for their reasonable prices and good performance.
These are custom-made to order by PC shops.

Just go to Mangga Dua Mal or Gajah Mada Plaza, two shopping
centers in the capital's Chinatown. Many PC stores offer low cost
products, as they are really "homemade". There are also vendors
at other places, including Mall Ambassador and Ratu Plaza in
South Jakarta.

The rapid development in information technology has created
numerous innovative devices that have helped lower prices
further. Processors, memory chips, synchronous DRAM and other
equipment are now offered at much lower prices, causing PC prices
to drop.

Locally made PCs offered by vendors may contain various
components from different makers, which may not operate in
complete harmony. For instance, a good processor should be
matched with a proper Random Access Memory (RAM). When they do
not match, there will most likely be a blockage in the flow of
the data in the PCs.

In addition to a processor and RAM, there are other important
components including the motherboard, Video Graphic Adapter
(VGA), hard disc, floppy disc and sound card which should ideally
match each other. When completed, the device, which is called a
Central Processing Unit (CPU), must be equipped with a monitor,
keyboard, mouse and other accessories to become a PC. These items
should also match each other. Based on the possibility of assembling a PC with various
components, prospective users can ask for a particular PC with
certain specifications for the lowest price. If this happens, it
is likely locally assembled PCs will grab an even greater share
of the market in Indonesia. Here are some important tips in buying locally assembled PCs: 1. Before buying one, you must first assess what will you do
with the PC. A PC has many accessories or features such as a
microphone or webcam that you don't have to install, which will
lower the price.

2. If you really want some features, select the most useful,
including CD-RW drive, CD-ROM drive, DVD-ROM drive, removable
media-drive, graphic card AGP, voice card, network card, modem
and so on.
3. Check and test the body case, power supply, keyboard, mouse,
operation system, cooler fan and monitor. Also find out how the
floppy disc drive and hard drive work.
4. Check the motherboard. It should ideally match with the
processor.
5. Check the memory to make sure it matches with the RAM type and
motherboard speed.
6. Can the PC be upgraded? Old components may not be match with
new components.
7. Check the software, is it original or illegal? The U.S.-based
Business Software Alliance (BSA) estimates more than 80 percent
of PC software sold in Indonesia is pirated.
8. Buy PC at shops owned by people you know well. This is to
avoid the possibility of being sold a PC with used components.
9. Ask for a warranty and know the type of after-sales services
you are entitled to.