Electronic Product Turnover May Reach IDR37 Trillion

Selasa, 04 Februari 2014 | 10:26

The domestic electronic product turnover along this year may reach IDR37 trillion, or 12% higher than the turnover made in 2013 of IDR33 trillion supported with the sales of light emitting diode (LED) television.Chairman of Electronic Marketer Club (EMC) Rudyanto said the electronic product growth in this political year will be caused by a huge domestic market demand, both for household or government and private institutions.

“We are predicting that the electronic sales would grow by 12% this year compared with last year’s sales,” he said to Bisnis Indonesia, Sunday (2/2).

In the meantime, Indonesia Electronic Association (Gabel) predicted the sales product sales in 2014 would grow by 11% than in 2013. While in 2012, the domestic electronic product sales reached IDR34.71 trillion.

Chairman of Indonesian Electronic Employers Association Ali Soebroto Oentaryo said currently there is still no approval made on annual projection between the association and the employers. “Yet, the growth in 2014 is in the range of 10%-11%. This is typically the same with last year. We will be delighted if it can exceed the range,” he said.

Despite the increasing market, he was still convinced that the growth target this year would be a quite pessimistic expectation for it is caused by global economic crisis condition which affects real sector sales in domestic.

Other than that, he said, the threat over the increases of electricity basic tariff (TDL) for the industry in May 2014 as well as labor wage and fuel in last year still become the factors that hamper the electronic demand in 2014.

“The current economy is not stable which affects to the increase of production cost. For this, the sales price also increases. We do not know whether the market could receive it or not if the producers raise the selling price,” he said.

He said rupiah weakening to US dollar is greatly affecting the electronic industry. According to him, the increase of dollar against rupiah above 20% has made the employers are distraught to determine the selling price in the market.

Yet, he said, the electronic industry could not follow the 20% increase due to competition factor. “The selling price is increasing in the range of 5%-15%. For the products with high competition, the price increase is relatively low of less than 15%,” he said.

Television Domination

Overall, the television may still dominate the sales this year with a portion of 34% from total turnover of national electronic. Meanwhile, about 40% are contributed by household electrical appliances such as air conditioner (AC), refrigerator, and washing machine.

According to him, the electronic growth in 2014 will be spurred by goods with relatively low penetration. For a quite high penetration will still depend on economic condition. If the economic factor is less beneficial then the consumers will hold the purchase.

“For the consumers which are still not having certain electronic products, they will require and buy new things. It is different with the ones who replace new products where they tend to wait,” he said.

Further he said Rupiah weakening is greatly affecting the industry due to 50% of electronic spare parts are still imported. Meanwhile, the electronic basic industry in domestic is still small.

“We ask for a certainty on Rupiah. The fluctuating Rupiah will be very bothering to the businessmen not to mention the domestic infrastructure which is still poor. The road in Central Java is broken due to the flood that really hampers the distribution,” he said.

According to him, the flood which destructed Jakarta and the surrounding also suppressed the sales in January. This is because there were several electronic brands which had loss due to the submerged warehouses, shipping fleets, and factories.

by Muhammad Khamdi, Renat Sofie Andriani
source http://business.bisnis.com