Electronics makers paint rosy outlook

Electronics makers paint rosy outlook

The Jakarta Post, Jakarta

Electronics producers have painted a rosy outlook for sales in
the domestic market next year, despite the government's plan to
raise fuel prices.

The Electronics Marketer Club (EMC), which is an association
of leading electronics producers operating in the country,
forecasts that domestic sales will increase by between 14 percent
and 20 percent next year, which it said was a "conservative
target".

"The target takes into account the impact of the fuel prices
hike on public consumption," EMC chairman Sung Khiun said as
quoted by Antara.

He said that the fuel price hike would have an impact on lower
to middle income consumers, but not the middle to upper income
group.

As such, he said, a high growth in sales would mostly occur in
the high-end market.

The EMC estimated that television sales would increase from 4
million units this year to 4.55 million units next year.

Refrigerator sales will rise by 12 percent to 1.9 million next
year from 1.7 million this year. Meanwhile, both air conditioner
and washing machine sales are expected to expand by 21 percent.

A significant jump would happen in the digital versatile disk
(DVD) player market, with sales expected to surge by 100 percent
to 900,000 units next year from 450,000 units in 2004.

"DVD player sales will surge as people shift from VCD (Video
Compact Disk) to DVD," said Sung, who is also LG Electronics
Indonesia's general manager for marketing and sales.

Aside from expected higher economic growth, Sung said, another
factor that makes electronics producers optimistic about sales
next year was the government's commitment to curb smuggling.

Electronics producers have long complained about rampant
smuggling, saying it was hard to develop a strong electronics
industry in the country, as 50 percent of electronics traded in
Indonesia are smuggled goods.