5 Electronic Products China Threatens National ( Indonesia ) Market
Posted by dian eko | Filed under business reviews
According to Grace, if the fifth position of these products displaced by the entry of imports, it is very unfortunate. Because the local content in these products is high. Local content on radio cassette products reached 71%, television 60%, and 50% fan. ”And this product a high local content. If the refrigerator is only 25%. AC even just 5%,” he said. According to the data F-Gabel, five products have been consumed by 20 million middle-income family heads down in Indonesia each year. Prices range from five Rp147.000 product â € “Rp1, 3 million per unit.Federation Joint Electronic (F-Gabel) states five electronic products in the country is threatened by imported products from China, as the impact of the implementation of the ASEAN free trade agreement, China (ACFTA).
These five products are cassette radio, television-sized 14-inch and 21 inch, electric fan, iron capacity of 350 watts (W), and water pump 125 W. The reason is because the cost of domestic production is more expensive when compared to the cost of products imported from China.
“In terms of cost calculation, our electronic products will be in danger. Looking at the cost of coming in here, the less it would be even cheaper to import duties here,” said Chairman of the F-Gabel Rahmat Gobel on the sidelines of the Business Strategy Workshop in 2010, Grow or Die, in Jakarta, Tuesday (26 / 1).
Manurut Grace, if the fifth position of these products displaced by the entry of imports, it is very unfortunate. Because the local content in these products is high. Local content on radio cassette products reached 71%, television 60%, and 50% fan.
“And this product a high local content. If the refrigerator is only 25%. AC even just 5%,” he said.
According to the data F-Gabel, five products have been consumed by 20 million middle-income family heads down in Indonesia each year. Prices range from five Rp147.000 product â € “Rp1, 3 million per unit.
“Those who buy this are the quality of care, because he prefers the price. While China’s products average lower quality,” he said.
Largest market penetration of products into the medium scale until 2009 dominated the record player products for 71% of the total production of about 465,000 units per year. The CRT TV products have penetrated the local market share of about 63% of the total production of 4.3 million units per year. Items fan control 50% of the market or the equivalent of 1.35 million units of total production of 2.7 million units per year, while the iron for 40% of the total production of 3.7 million units per year. The water pump reaches 31% of the total production of 1.7 million units per year.
Among producers of electronic states ACFTA implementation portion will increase the penetration of imported products of China under the medium-scale local market. The condition was feared could threaten a similar producers in the country. Data Electronic Marketer Club (EMC) up to 2009 there were approximately 18 electronics manufacturers are still producing the household electronic gadgets under the medium scale. ”I have to classify any products that are threatened and which can survive,” he said. Meanwhile, electronic products which fall into that category Gobel secure and will be able to survive a refrigerator, washing machine, air conditioner (AC), TV LCD, notebook computers, digital cameras and mobile phones.
Nevertheless, he emphasized the need of setting high national standardization of the product in and traded within the country.
“In the U.S., mobile phone products made in China can not enter. Because they have strong standards. While here, many non-standard products are entered. This in the long run consumers will be harmed,” he explained.
Furthermore, Grace says to make industrial electronics in the country can have strong competitiveness, the government should further develop the components industry. Because the component is an important factor in manufacturing industries including electronics .. ”Component of our industry is still very low. Factory new compressor we just got one,” he explained.
The more components in the higher import costs. He also asked the government to keep the product more difficult to illegally enter Indonesia. Because based on combined data of electronic business (Gabel) in 2008 from a total demand of electronic products for household of U.S. $ 29.8 billion in the domestic industry supply by 34%, whereas 35% filled by the illegal industry and the rest of official imports. He also stressed the need for a new effort from the government to accelerate the harmonization of tariff and fiscal policies.
“There are several possible fiscal instruments to be used to reduce the cost of production and business costs in order to improve the competitiveness of national industrial products. Fiscal facilities can be utilized include value added tax, import duties of raw materials and auxiliary materials,” he said.
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