Computer sales to grow by 50%, says association

Computer sales to grow by 50%, says association

Urip Hudiono, The Jakarta Post, Jakarta

Domestic sales of personal computers (PCs) are expected to rise
by 50 percent to 1.5 million units this year, on the back of the
public's increasing need for computers in their daily activities,
an industry association said.

Sales of mobile computing devices -- notebook computers and
personal digital assistants (PDAs) -- also will continue their
rising trend, as more people see the need and practicality of
bringing their work with them, the association said.

"We see this year as being a particularly good one for the
computer industry," Indonesian Computer Business Association
(Apkomindo) chairman G. Hidayat Tjokrodjojo told The Jakarta
Post. "There are so many factors that will be able to boost
computer sales."

In addition to improved purchasing power as a result of the
domestic economy's continued recovery, Hidayat said the
commencement of several government-endorsed infrastructure
projects would contribute as well to this year's PC sales.

"The projects will obviously need a lot of computing power for
their administrative tasks and such, which we hope can be met by
local PCs," he said.

Data from Apkomindo shows that domestic demand for PCs has
been on a steady rise over the last several years. PC sales
reached one million units in 2004, a 33 percent increase from the
750,000 units in 2003, which was itself a 20 percent rise from
600,000 units in 2002.

Locally assembled PCs -- popularly known as komputer rakitan
-- account for about 60 percent of all sales, with the remaining
40 percent being built-up desk tops.

Of total computer sales, notebooks make up about 20 percent to
30 percent.

"The notebook share is expected to rise, as more people tend
to be notebook-minded these days," Hidayat said.

"Almost all corporate managers, from mid-level up, for
example, now carry notebooks around with them so they can make a
presentation of their work and project wherever they go."

Hidayat also sees the recent integration of the
telecommunications directorate general from the Ministry of
Transportation into the newly upgraded State Minister for
Communications and Information as a positive step for the local
computer industry.

"The government, through the ministry, can now focus more on
promoting information technology to the public," Hidayat said.
"This will certainly help PC sales in the country."

Besides the domestic factors, Hidayat also cited recent events
in the global computer industry -- including the decision of
computer giant IBM to sell its PC business to Chinese PC maker
Lenovo and the resignation of Carly Fiorina as Hewlett-Packard's
chief executive officer -- as having a positive effect on PC
sales in Indonesia.

"These events will surely make these companies pursue new
marketing strategies, which will in the end improve sales of
branded PCs here," he said.

Indonesia's computer penetration is among the lowest in
Southeast Asia -- only some 4 percent of the country's 220
million people have access to computers.

Apkomindo itself rolled out the PC Ownership Initiative to
help increase access to computers, offering affordable PCs priced
at Rp 3 million (US$333) through pilot projects in Bali and East
Kalimantan.