Currency crisis hurts PC sales

Currency crisis hurts PC sales

JAKARTA (JP): The plunge in the rupiah's value has hurt the
personal computer business in Indonesia, with sales dropping by
25 percent to 50 percent in the last two weeks.

Vitriani, business manager of PT Arsitama Citra, a dealer of
GTC computer products, said most computer spare parts were
purchased in U.S. dollars, so the weak rupiah increased
assembling costs.

"We have had to increase our prices by at least 10 percent,"
Vitriani said.

Paradise Computer, an IBM dealer, and Masterdata, a Toshiba
and Compaq dealer, said they had increased their prices by 20
percent.

Some dealers, however, are selling their existing computer
stocks at old prices.

"We will sell our current stocks at old prices. Afterwards,
prices will depend on the rupiah's exchange rate," said Hermawi
F. Taslim, exhibition manager of Dragon Computer which sells Acer
and IBM computers.

The rupiah has declined by over 20 percent against the U.S.
dollar since early January, reaching its lowest level in the last
few weeks due to speculative trading.

Before the currency crisis, computer prices had been
declining, making the product affordable to more people, he said.

The increase, he said, would discourage people to buy.

Most computer dealers said they would charge the new higher
prices at the upcoming Indocomtech 97 which opens Thursday at the
Jakarta Convention Center.

They fear they will not reach their sales target.

They recalled that at two recent exhibitions, including the
Mega Bazaar Computer 97 at the Jakarta Convention Center, sales
were brisk because dealers were slashing their prices.

Dealers said they hoped the currency crisis would end soon.
(08)