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.