PC imports soar, but sales only moderately higher

PC imports soar, but sales only moderately higher

Rendi A. Witular, The Jakarta Post, Jakarta

Imports of personal computers soared 43 percent in the first
semester of the year as local traders aggressively added to their
stock on the strengthening of the rupiah to the U.S. dollar.

But domestic sales of PCs only moderately increased 10 percent
in that period, according to the Indonesian Association of
Computer Dealers (Apkomindo).

Association chairman Hidayat Tjokroadjojo said over the
weekend that domestic sales of PCs reached 165,000 units in the
first semester of the year, up from 150,000 in the same period
last year.

Hidayat said the association had in fact expected more than a
10 percent increase in sales last semester, but many buyers
apparently delayed their purchase plan given the fluctuation of
the rupiah. They apparently expected the rupiah to strengthen
further in time.

However, the strengthening of the rupiah has prompted local
traders to buy more PCs from producers.

The latest report by the International Data Corporation (IDC)
said Indonesia's import of PCs during the first semester reached
323,400 units, a 43 percent increase from last year's 170,000.

In the second quarter of the year, imports reached 165,300
units, representing a 43.6 percent increase from the same period
last year.

Commenting on the IDC report, Hidayat said the significant
rise in PC imports was due to the strong performance of the
rupiah in March and April, which encouraged traders to add to
their stock. They expect a higher margin from the sale of their
goods when the rupiah weakens.

In April, the rupiah managed to strengthen to a nine-month
high of about Rp 8,500 to the dollar, but the local currency has
become slightly weaker, hovering around Rp 9,000 over the past
several weeks. April's rise was the rupiah's strongest
performance since October last year.

Domestic computer sales are always sensitive to the
fluctuation of the local currency against the dollar. When the
rupiah weakens, PC prices instantly increase. To prevent a
potential loss, local vendors usually set PC prices in American
dollars.

"Fluctuations in the rupiah are a computer dealer's worst
nightmare, since more than 80 percent of the components in PCs
are imported," said Hidayat.

He said the local PC market had recovered over the past two
years after plummeting in the first years of the economic crisis.
The banking, telecommunications and oil and gas sectors have
shown signs of recovery, which have had a positive impact on the
PC market.

"Normally, local PC sales get a boost in the second semester.
High demand is driven by the start of school and seasonal buying
by corporations," said Hidayat.

Apkomindo has projected total PC sales for this year at
566,000, compared to 482,000 in 2001. Locally assembled PCs will
continue dominating the market with a 60 percent market share.

To lift PC sales to meet the association's target, Apkomindo
plans to hold a computer exhibition at the end of this month.