Prices of most electronic goods drop 30 percent
Prices of most electronic goods drop 30 percent
JAKARTA (JP): The increasing value of the rupiah against the
greenback has caused the prices of most electronic goods to
plunge by between 10 percent and 30 percent after their
significant rise over the past year.
Among the goods which have seen their prices lowered by
merchants are television sets, cassette players, laser disc
players, compact disc players, video compact disk (VCD) players
and washing machines.
Slashed prices were seen at a number of popular electronic
goods centers in the capital, including ITC Mangga Dua shopping
center in North Jakarta, Mangga Dua Mall in West Jakarta, Glodok
Harco electronics market in West Jakarta and Pasaraya shopping
center in South Jakarta.
The Jakarta Post saw on Thursday crowds of shoppers at these
four locations. Many of the shoppers were carrying their newly
purchased electronic goods, while others were simply pricing
various products.
The rupiah has strengthened to its current level of some Rp
6,700 against the U.S. dollars. The currency experienced a
drastic drop from its Rp 2,500 level in July 1997, hitting a low
of Rp 17,000 to the dollar in January 1998.
At Pasaraya, for example, the price of a RCA washing machine
has been cut to Rp 4.1 million from Rp 5.8 million, or about a 30
percent drop.
"All electronic goods are imported, so their prices totally
depend on the dollar-rupiah exchange rate," a store manager at
Pasaraya, who asked for anonymity, said.
Foreigners
Since the rupiah began showing signs of life three weeks ago,
leading to a significant drop in the prices of electronic goods,
the number of foreigners purchasing electronics at the shopping
center has fallen, he said.
"The number of foreigners purchasing electronic goods here has
dropped by one-third compared to the numbers in early June," the
store manager said.
Pasaraya expects to attract more local shoppers in the coming
days, he said.
Felicia, the owner of Utama Lancar, a store selling
televisions and video compact discs on the ground floor of Glodok
Harco, agreed that the prices of most imported electronic goods
were falling.
"Only electronic goods produced by local companies such as
Polytron are remaining at their old prices," she said while
waiting on a customer.
"A Santec model 880-BK VCD player used to cost Rp 700,000. Now
the price is only Rp 500,000," she said, adding that Sony
products were the only imported electronic goods whose prices
were not on the decline.
Ipong, a sales supervisor at PT Graha Electronic, an official
distributor for PT Sony Indonesia, the country's sole agent for
electronic giant Sony Corporation, said his company had not
lowered prices because the goods currently for sale in the stores
were imported when the rupiah was much weaker against the dollar.
"Every six months PT Sony Indonesia obtains electronic goods
from Sony Corporation, and we determine prices based on the
currency exchange rate at that time," Ipong said.
Not all
However, not all store owners selling Sony products refused to
lower prices.
A shop attendant at Setia Mandiri on the second floor of ITC
Mangga Dua said his boss has reduced the prices of a number of
Sony products.
A 14-inch Sony television set which was priced at Rp 1.9
million three weeks ago is now being sold for Rp 1.8 million, he
said.
"We need to lower our prices to survive the tough competition
here," he said.
Before the rupiah crashed, the same television set sold for
Rp 550,000, he added.
Despite the falling prices of most electronic goods, many
people are still taking a wait-and-see attitude, hoping the
rupiah will continue to gain strength.
A distributor of Aiwa products, Suwandi, said at his store on
the ground floor of Mangga Dua Mall: "Since the price of imported
electronic goods mainly depends on the rupiah's value against the
dollar, many consumers are still waiting for further improvements
against the dollar.".(asa)