Electronics sales is rise 25%: Association

The Jakarta Post, Jakarta

Electronics sales could rise by between 15 and 25 percent this year as a result of the luxury tax breaks introduced by the government early last month, the country's association for electronics sellers said.

"The tax breaks, which became effective on Feb. 1, have cut prices and thus encouraged people to purchase electronics," Electronics Marketers Club (EMC) spokesman Handoko Setiono told The Jakarta Post.

He also said the tax breaks would make Indonesian-made electronics more competitive against illegally imported goods.

"People should now prefer buying locally-made products than the smuggled ones, because the former, unlike the latter, have guarantee cards while the price gap between them has narrowed," he said.

Local producers have often aired concerns about the rampant smuggling of electronics, saying they had lost much of its market share due to the contrabands.

Handoko projected electronics prices could decrease by 5 to 10 percent after the tax breaks, while traders at the Glodok shopping center, the country's largest electronics trading hub, told the Post last week that prices had decreased between 10 to 30 percent.

"The prices of television sets, refrigerators and washing machines will decrease by 5 percent, and the price of air conditioners will fall by 5 to 10 percent," he said.

The association had not yet compiled figures for January sales, but he projected sales had fallen five percent compared to December sales as consumers delayed purchasing plans, expecting the price to fall in February.

In December 2002, EMC data shows that sales of television sets reached 155,086 units, refrigerators, 75,408 units, air conditioners, 19,597 units and washing machines, 32,058 units.

In November, sales of TV sets stood at 198,339 units, while refrigerators reached 162,618 units, air conditioners, 30,570 units and washing machines, 31,683 units.

"Sales in December are usually lower than November, because there were fewer working days due to a number of holidays," said Handoko.