Computer sales projected to equal last year's figures

Computer sales projected to equal last year's figures

JAKARTA (JP): The strengthening of the rupiah against the U.S.
dollar, coupled with the government's new tax policy, may spur
sales of computers for the next six months, but the initial
growth target of 20 percent for this year is unlikely to be
reached, an association executive said.

Chairman of the Indonesian Computer Dealers Association
(Apkomindo) G. Hidayat Tjokrodjojo said on Saturday that computer
sales for this year would at best equal last year's sales of
400,000 units, if the rupiah continued to strengthen.

The association initially targeted this year's sales at
480,000 units.

He said computer sales between January and June this year only
reached 150,000 units due to the weakening rupiah during the
period.

The rupiah has strengthened since the election of President
Megawati Seokarnoputri. The currency closed at Rp 9,500 on
Friday. It was above the Rp 11,000 mark prior to the election of
Megawati.

Hidayat noted that corporate buyers usually increased their
spending for computers in the second half of the year, adding
that the new school year in July also usually prompted more
sales.

He said he hoped the new Cabinet led by Megawati would manage
to keep Indonesia's political as well as economical situation
stable as this would help stabilize the rupiah.

"Rupiah fluctuation is computer dealers' worst nightmare,"
Hidayat said, noting that more than 80 percent of the computer
components in a personal computer (PC) are still imported.

Hidayat also said the scrapping of the 20 percent luxury tax
on computers in July also encouraged more people to buy
computers.

The tax, which was introduced by the government in January
this year, sparked protests from the industry.

Sales reached a peak of 392,000 units in 1997, then plunged to
74,000 units the following year. In 1999, sales increased to
279,000 units.

"When the government imposed the 20 percent luxury tax, we
estimated sales to drop 20 percent to about 320,000 this year,"
he said.(tnt)