Computer industry will grow by 25%

Dewi Santoso, The Jakarta Post, Jakarta

Domestic demand for computer terminals is expected to increase by 25 percent to 1 million units this year despite the upcoming general election, an industrial leader says.

Richard Kartawijaya, vice chairman of the Indonesian Telecommunications Society (Mastel), which groups telecommunications and information technology (IT) companies, said on Monday that this year's increase would be higher than last year's as more people and institutions needed computers for their activities and operations.

"This year's increase will also be supported by higher growth in the country's economy," he said.

Indonesia's economy, which grew by 4.1 percent in 2003, is projected by the government to expand by 4.8 percent this year.

Richard, quoting data from the Indonesian Computer Business Association (Apkomindo), said that domestic demand for computers increased by 20 percent to 750,000 units in 2003 from 600,000 units in 2002.

Apkomindo's data, however, is different to that from the Ministry of Industry and Trade as the latter's shows that domestic demand for computers increased by 22 percent to 900,000 units in 2003 from 700,000 units the previous year.

The data also shows that Indonesia's computer exports increased by 4.5 percent in value to US$1.26 million in 2003 from $1.21 million in 2002.

However, the data shows that the exports of computer software decreased by 58.3 percent to $5 million in 2003, from $12 million in 2002.

According to director general of metal, machinery, electronics and miscellaneous industries at the Ministry of Industry and Trade Soebagio, the decline in software exports was due to "decreasing demand and economic crisis in the region".

Richard explained that Indonesia had now begun to develop its own programming system for various applications, including Human Resources Application and Enterprise Resource Planning (ERP).

"It's still very simple compared to those from other countries, but it deserves applause, and we need to boost it as it will help us increase the country's exports," he said.