Exporter Elektronik
Exporter Elektronik
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INDONESIA
INDONESIAN
ELECTRONICS PRODUCTS
What's Inside
The Indonesian government has designated
electronics industry as one of its priority industries to
help boost non-oil-and-gas export to the international
market. While Indonesia's contribution is still relatively
small, there are already a number of home-grown
electronics makers which are ready to export their
products abroad.
Thank You
export
INDONESIA
INDONESIAN
ELECTRONICS PRODUCTS
What's Inside
The Indonesian government has designated
electronics industry as one of its priority industries to
help boost non-oil-and-gas export to the international
market. While Indonesia's contribution is still relatively
small, there are already a number of home-grown
electronics makers which are ready to export their
products abroad.
Hot Issue 3
List of Exporters 10
Commercial Attaches 11
hot issue
Indonesian Electronics
Everyday life of the modern society is inseparable from electronics and electric goods right from early in the
morning when we start the day to late in the evening when we return to our beds. There are plenty of electronics
goods making our daily life easier from household appliances such as refrigerators, washing machines and
vacuum cleaners to communication gadgets such as smartphones and tablets.
Indonesia is the largest economy in ASEAN with some 245 million people and has an increasing number of
middle class families. As the number of families with dispensable income increasing, so is the amount of money
being used to buy electronics and electrical goods. Huge number of population and middle class families have
enticed a number of major electronics producers to enter Indonesia not only to tap its huge market potentials
but also to turn the country into a production hub. Having Indonesia as a production base has a two-pronged
benefit. Electronics makers can market their smartphones under the brand Polytron. Other
products domestically while at the same time export brands which are reportedly planning to open their
their products, taking advantage of a huge pool of production lines include Advan and Cross.
skilled workers with competitive wages.
Polytron smartphones are previously being
Among the major electronics makers making such manufactured in China. On the other hand, Polytron
step is Japanese brand Sharp through PT Sharp has three manufacturing facilities in Indonesia
Electronics Indonesia (SEID) which opened a new producing a wide array of electronics appliances
factory in the Karawang International Industrial City ranging from audio and video products, such as LED
(KIIC) in Karawang, West Java on Feb. 12, 2014. The and LCD television sets, Hi-Fi audio sets, Compo,
factory is Sharp's world largest factory producing home theater sets, and speakers – home appliances
electronic home appliances. such as refrigerator, washing machine and air
conditioner.
Standing on a 31-hectare plot of land, the factory
produces twin tub washing machines and small to Another domestic powerhouse in the field of
medium refrigerators with a maximum capacity electronic home appliances is PT Maspion which
of 300 liters. The factory has a capacity to produce plans to open another manufacturing facility in
220,000 units of refrigerators and 140,000 units of Kendal, Central Java. The company already has three
washing machines per month. These production factories in Sidoarjo, East Java, and each one factory
figures are twice the capacity of Sharp's first factory in Surabaya and Gresik, also in East Java, and another
in Pulogadung, East Jakarta. one in Bekasi, West Java. Seeing the ever increasing
potentials, Maspion plans to open a new factory in
Sharp focuses on refrigerators and washing wachines
Kendal, Central Java, which will produce a number of
to meet the ever increasing demands as well as
household goods.
complementing Sharp's other products of TV and air
conditioners. There are many others manufacturers which have
operate in Indonesia selling their products not only
Meanwhile, a number of gadget makers – cell phones
at home but also exporting them all over the world.
and tablets – are planning to open their production
In fact, some manufacturers have made Indonesia
lines in Indonesia. PT Tera Data Indonusa, for
their production bases for certain products. This will
example, is planning to produce Axioo smartphones
allow the contribution of electronics and electrical
while PT Hartono Istana Technology will produce
goods to Indonesian export to keep increasing.
Indonesian
Electronics Market
Electronics products research agency Growth From not follow rupiah depreciation due to competition.
Knowledge (GfK) Indonesia recorded that the
“The price increase would be varied ranging from
market value of 40 electronics products in Indonesia
5% to 15%. Products with high competition will
in 2010 reached Rp 83 trillion or increasing by 17%
have lower increase rate, less than 15%,” he said.
from the figure in 2009. GfK Indonesia account
manager Grace Maringka said that in general Overall, televisions still dominates the market with
consumers change their consumption pattern – by a 34% of the total sales followed by other home
considering quality more -- when the income per appliances such as air conditioner, refrigerator and
capita reaches US$3,000. washing machine at a combined share of 40%.
“Based on GfK research in more than 40 types of Rudyanto said the growth in 2014 electronics sales
electronics goods, more than 40% of market value would be boosted by items which penetration rates
is contributed by telecommunication devices, ie were still low.
mobile phones and smartphones. The digital world “Consumers would delay buying electronics items
is getting closer with our lives,” she said. with high rate of penetration. They will wait if they
The GfK research found that more than 80% of want to buy a new one,” he said. “But they will have
electronics products sold in Indonesia was priced to buy a new electronics item if the customers have
below Rp 2 million (US$) reflecting the purchasing not already have one.”
power of the customers. Indonesia eyes a growth of 10% in the next four
Meanwhile, the Electronics Industries Association years for electronics industry with currently
(Gabel) expected domestic electronics sales in 2014 235 companies in the sector. Electronics is one
to reach some Rp 44 trillion, increasing from Rp the priority industries for further development.
38.5 trillion in the previous year. Gabel chairman Ali The government keeps supporting the industry
Soebroto Oentaryo, however, was concerned with so that it can meet the world's demands by
the weakning rupiah against the greenback would creating conducive business atmosphere such
affect achieving the sales target. as by providing tariff and taxation incentives and
“Rupiah depreciation has caused the prices of safeguarding the domestic market by roughly 6%.
imported electronics goods to increase by 20%. Technology and product advancements have led to
The prices of local electronics items also increased faster emergence of new products which are more
because the production cost is increased by sophisticated. In the past 10 years, the product
20% because some of the components are still cycle has become much shorter. New products are
imported,” Ali said. springing up every two years otherwise they will be
He said, however, the price increase would be beaten by the competition.
incremental in several stages at between 2% and The improving condition of the world's economy
3% in each stage. has brought advantages for Indonesian export.
Separately, the Electronics Marketer Club (EMC) Currently, export of electronics products have
chairman Rudyanto said the price increase would spurred export growth in various countries.
World's Import
The world's import of electronics is showing a United States followed closely with US$3.22 billion
rebound in the past five years although it has not (15.61%). Hong Kong was third with US$1.14 billion
yet reached the 2008's level of US$24.37 billion. (5.52%), Germany imported US$1.07 billion (5.21%)
The figure fell sharply to US$16.44 billion in 2009, and Japan imported US$685.67 million (3.32%).
due to the prolonged global financial crisis. In The United Kingdom was the sixth largest with
2010, there was a sign of recovery with an import US$682.30 million followed by the Netherlands
of US$18.48 billion. The recovery continued with (US$636.55 million), Canada (US$628.77 million),
US$19.30 billion and US$20.63 billion in 2011 and Mexico (US$581.57 million) and France with
2012 respectively. US$540.80 million. Ranked at the 36th place,
Indonesia imported US$83.97 million of electronics
In 2012, China was the top importer with US$3.66
or 0.41% of the total world's import.
billion or 17.71% of the total import while the
World's Export
The world's export of electronics dropped from and followed by the Philippines with US$1.65
US$27.50 billion in 2008 to US$20.09 billion in billion (8.21%), Hongkong exported US$1.31 billion
2012. China dominated the world's market in 2012 (6.55%) and Germany shipped US$994.5 million
by sending US$8.25 billion or 41.10% of the world's (4.95%). Indonesia's market share was 1.53% of the
total export. The United States was in the second world's export at the 13th place.
distant after shipping US$1.70 billion or 8.44%
Source: Central Board of Statistics, prepared by Dit. of Market Dev. & Export Information, Dit. Gen. NED
goods and, more importantly, churning out high- product was refused by electronics stores. The
quality products and maintain a sustainable supply. company's president director was even reportedly
chased out of a electronics store when offering the
Polytron first Polytron product. However, realizing that they
were cigaratte makers who were venturing into
Polytron is an indigenous, well known electronics
electronics industry, the company was determined
brand in Indonesia. The history started on May
to undergo the tough times as an opportunity to
16, 1975 when the owner of cigarette maker PT
learn.
Djarum Kudus established PT Indonesia Electronic
dan Engineering with a capital of Rp 50 million to The company then shifted from European
produce electronics goods. As a cigarette maker technology to Hong Kong technology. Using
expanding to electronics industry, the company set components sourced from Hong Kong, the company
it clear that it did not want to involve any foreign launched a 20-inch black and white TV. The company
capital or partner. Since its establishment, Polytron also established a research and development unit
does not have a principal so it does not have to pay allowing it to produce its own design. The company
royalties to every product it makes. also cooperated with Finnish TV maker Salora (now
Nokia) for technology transfer.
In 1977, the company recruited 14 female graduates
of senior high school and business vocational PT Indonesia Electronic dan Engineering changed
high school to get soldering training, turning its name into PT Hartono Istana Electronics and
electronics components into electronics products. in 2000 was changed again into PT Hartono Istana
The components were sourced from Singapore. Teknologi. Inline with the name change, the
After the training ended, the Kudus-based factory company has managed to develop energy efficient
imported components from Belgium to start a color TV with the sizes of 17-, 20- and 26- inch
technology transfer process from Philips-MBLE, consuming only 40 watts. The company even claims
Belgium. The company launched its first TV product to have produced TV which consumes only 20 watts
under the brand Polytron. It was a flop due to its of energy, claimed to be the first in the world.
huge size and still needed speaker boxes preventing Polytron is being exported to various countries
customers who were looking for pratical products. athough it has to be sold under different brands to
The factory suffered from marketing failure as its make it acceptable at European markets.
primadi@akari-corp.com MASPION, PT
Website : www.panggung.com Jl. Kembang Jepun No. 38-40, Surabaya, East Java 60162
Phone : (62-31) 3531445, 3541040, 3530333,
LG ELECTRONICS INDONESIA, PT 8531531, 853699
One Pacific Place Building, Level 11, SCBD, Fax : (62-31) 3533055, 3533218, 8532606
Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190 Email : export@maspion.com, ipo@maspion.com,
Phone : (62-21) 57973113 (Hunting) info.hq@maspion.com
Fax : (62-21) 57973103, 89982348 Website : www.maspion.com
Email : ibnul.kk@lge.com, chairul.hamdani@lge.com,
Website : www.lg.com
Commercial Attaches
Telp. : (+91-11) - 26114100 Website : -