Purchasing Power Slump Leaves Electronics Industry Utilisation at Just 65%

Geopolitical and global economic turmoil, coupled with declining purchasing power, are weighing on the performance of the national manufacturing sector, including the electronics industry, which has recorded a production capacity utilisation rate of only around 65 per cent. Deny Irawan, Chairman of the Indonesian Electronic Commodity Entrepreneurs Association (APKONIK), stated that the pressure on the electronics industry is inseparable from changes in consumer behaviour and the influx of imported products that undermine competitiveness. Consequently, businesses are hoping for government support to stem the flow of imported electronic goods, including illegal products. Local electronics industry players say the suppressed utilisation rate is also linked to rising production costs.