Local PCs make big leap

Local PCs make big leap

I. Christianto, Contributor, Jakarta

Locally assembled personal computers (PCs) have now started to
dominate the local PC market.

More and more local buyers, particularly individuals, have
turned to locally made PCs, not only due to their lower prices,
but also their relatively better quality.

Market share of the locally made PCs has continued to increase
since early 2000, in line with the launch of better-quality PCs
by local producers.

In the past, locally made PCs, called jangkrik (crickets)
because they often produced a noise when operated, had little
respect from users. Now, they have become the first choice,
particularly for the majority of individual buyers.

"The jangkrik has become a real computer and has a similar
capability to foreign brands," said chairman of the Indonesian
Computer Dealers Association (Apkomindo) Hidayat Tjokrodjojo.

He said that sales of the locally made PCs rose by 20 percent
to 600,000 units last year, or about 60 percent of the country's
total PC sales.

"This year, we expect to book the same growth rate," he said,
adding that he hoped the government's computerization plans would
also help further increase sales in locally made PCs.

"We are awaiting support from the government, both central and
local. We hope they will use local products to support their
computerization programs, particularly for the general election
next year," he added.

Chief executive officer of PT Zyrexindo Mandiri Buana Timothy
Siddik agreed with Hidayat. He said that the government had many
projects that could involve local PC producers, such as the
application of Internet programs in government offices.

Zyrexindo, which holds the exclusive rights to produce PCs
under the American name Cyrex in Indonesia and other countries,
said it was ready to supply if it were involved in the
government's projects.

Timothy said that wih a a strong research & development team,
his company could offer the latest technology in PC production.
The company, which had already obtained the ISO 9001 certificate
and hired highly trained workers, was ready to compete, even with
foreign producers.

"I think the local products are very competitive. The locally
assembled PCs are good in all aspects, including quality,
specification, technology, and so on. I'd say the local products
are as good as the imports, possibly even better," he said.

Zyrexindo produces several brands, including Tactical (for
businesses), Ellipse and Familia (for households). The company
also makes laptops.

Several local PC makers exist in Indonesia, and they have been
able to produce products to international standards. They include
PT Berca Cakra Teknologi, which produces the Relion computer, PT
Multi Persada International, with its Mugen, popular for its
Gold, top-grade memory, and the highest quality of its type, with
an unlimited lifetime warranty.

Other local brands include Garuda, Wearnes or Fox. All are
rivals for popular names such as Dell, Apple, Toshiba, Texas
Instruments, and so on.

Hidayat said that local products were generally much better in
extending after-sales service, as his company, for instance, ran
many service points for customers.

"Most PCs now offer the same quality in term of specification.
The local brands are also equipped with the same components, such
as the Pentium processor and Intel motherboard. What we should be
concerned about is customer support and after-sales service," he
said.

He added that with good after-sales support and service,
locally assembled PCs would be able to establish a larger market.

"The market is increasing. We, the local players, expect to
see more sales," he said, adding his company had a capacity to
produce about 60,000 units per year.

He said sales and value had increased respectively by 70
percent and 50 percent last year, but declined to elaborate.

Hidayat said that the total sales of PCs in the local market
were estimated to increase only by about 10 percent this year, as
corporate demand would likely remain flat.

Hidayat, who also runs IT solution company PT Realta
Chakradarma, said Apkomindo members would soon launch a one-stop
trading center for PCs in Glodok Plaza, West Jakarta, to further
boost the sales of local PCs.

"It will be launched later this month; some 300 shops are
ready to serve PC suppliers. This is not one-stop shopping, but
trading, meaning we offer everything computer-related to large
buyers," he said.

However, he said, the introduction of the newly approved law
on intellectual property rights could become a threat to local PC
producers.

"The bill, which will be enforced later this year, should be
implemented very carefully, or so many people will be heading for
jail," he said.

The House of Representatives passed the new law last year, and
it will be implemented on July 29.

Indonesia is one of the nations that has a high incidence of
pirated PC software use. Hidayat said it occurred because most
local buyers could not afford original software.