Electronics Industry Expects Rp 2t Rise in Sales This Year
Despite declining purchasing power, higher sales taxes on electronic goods and falling export demand, the local electronics industry remains optimistic that it can achieve both higher domestic and overseas sales this year, an official said.
The belief that Indonesia can buck the global downtrend, according to Agus Subiantoro, chairman of the Electronics Marketers Club, is built on laws curbing import flows, especially cheap, low-quality smuggled goods, a new agency to curb smuggling and fight dumping charges, and sales in areas where property construction is still booming.
“The EMC is optimistic that [domestic] electronics sales can go up to about Rp 20 trillion [about $2 billion] this year from Rp 18 trillion last year,” Agus said.
Although diminishing electronics exports worldwide have seriously hammered the economies of Japan, South Korea, Malaysia, Singapore and many others, Indonesia’s Ministry of Industry is nonetheless forecasting that electronics exports will increase slightly to $7.9 billion this year from $7.7 billion in 2008.
Though purchasing power in general is weakening nationwide, Agus added, people in some regions, especially Jakarta and other big cities which are still reporting active property construction projects, are still buying electronic goods for new apartments and houses.
“Higher electronics consumption has been also reported from some regions in Sumatra and Kalimantan that trade agricultural commodities, so these are factors to contribute to an electronic sales increase this year,” he said.
His forecast has been bolstered by first-quarter sales, which rose to Rp 4.7 trillion [$456 million] from Rp 4.5 trillion year-on-year.”
However, he said, domestic producers still faced competition from both legitimate and smuggled imports.
“Therefore, EMC supports the government’s import restrictions as a method of helping local manufacturers gain greater market share,” he said.
Trade Ministry regulations, which came into effect in February, restrict the importation of electronic products, textiles, food and beverages, and toys to six designated ports of entry into Indonesia. The policies are also expected to help improve the trade balance, Agus said.
The Trade Ministry said earlier that legal electronics goods, most of them imported, have remained stable since the introduction of the new regulations. However, Agus said, the regulations have proved beneficial in reducing smuggling.
“There has been no problem with regard to legally imported goods, accompanied by the proper documentation, which comply with customs and excise regulations,” he said.
“We’re ready to supply segments that have been dominated by imported products. Imports dominate the refrigerator market, for example. They account for about 70 percent of sales,” he said.
The biggest-selling consumer electronics are televisions, refrigerators, air conditioners, washing machines and water pumps, he said.
The Ministry of Industry last week said it would set up a special agency aimed at protecting local manufacturing products from illegal imports and dumping.
Fauzi Aziuzm, the director general for small and medium industries, noted that a similar agency was established in the 1980s, but that it disappeared when it was merged with another department.
The belief that Indonesia can buck the global downtrend, according to Agus Subiantoro, chairman of the Electronics Marketers Club, is built on laws curbing import flows, especially cheap, low-quality smuggled goods, a new agency to curb smuggling and fight dumping charges, and sales in areas where property construction is still booming.
“The EMC is optimistic that [domestic] electronics sales can go up to about Rp 20 trillion [about $2 billion] this year from Rp 18 trillion last year,” Agus said.
Although diminishing electronics exports worldwide have seriously hammered the economies of Japan, South Korea, Malaysia, Singapore and many others, Indonesia’s Ministry of Industry is nonetheless forecasting that electronics exports will increase slightly to $7.9 billion this year from $7.7 billion in 2008.
Though purchasing power in general is weakening nationwide, Agus added, people in some regions, especially Jakarta and other big cities which are still reporting active property construction projects, are still buying electronic goods for new apartments and houses.
“Higher electronics consumption has been also reported from some regions in Sumatra and Kalimantan that trade agricultural commodities, so these are factors to contribute to an electronic sales increase this year,” he said.
His forecast has been bolstered by first-quarter sales, which rose to Rp 4.7 trillion [$456 million] from Rp 4.5 trillion year-on-year.”
However, he said, domestic producers still faced competition from both legitimate and smuggled imports.
“Therefore, EMC supports the government’s import restrictions as a method of helping local manufacturers gain greater market share,” he said.
Trade Ministry regulations, which came into effect in February, restrict the importation of electronic products, textiles, food and beverages, and toys to six designated ports of entry into Indonesia. The policies are also expected to help improve the trade balance, Agus said.
The Trade Ministry said earlier that legal electronics goods, most of them imported, have remained stable since the introduction of the new regulations. However, Agus said, the regulations have proved beneficial in reducing smuggling.
“There has been no problem with regard to legally imported goods, accompanied by the proper documentation, which comply with customs and excise regulations,” he said.
“We’re ready to supply segments that have been dominated by imported products. Imports dominate the refrigerator market, for example. They account for about 70 percent of sales,” he said.
The biggest-selling consumer electronics are televisions, refrigerators, air conditioners, washing machines and water pumps, he said.
The Ministry of Industry last week said it would set up a special agency aimed at protecting local manufacturing products from illegal imports and dumping.
Fauzi Aziuzm, the director general for small and medium industries, noted that a similar agency was established in the 1980s, but that it disappeared when it was merged with another department.