Decrease in Electronic Products Because of Smuggling
Thursday, 19 October, 2006 | 14:54 WIB

Tempo Interactive, Jakarta: The domestic electronic industry has cut production by 50 percent during 2006 on account of many smuggled electronic goods.

The decrease in production was higher that last year's figure of 40 percent.

Rachmat Gobel, Chairman of Indonesia's Electronic Alliance, said that local electronic sales this year have increased compared to those in 2005.

However, much of the increase of sales was due to the high circulation of smuggled goods.

“The market did grow. But, these smuggled products had made local producers decrease production by 50 percent,” he said yesterday (10/18).

Based on data from the Electronic Marketers Club for electric fans, demand in 2004 reached 6.3 million fans, 7 million last year and 7.5 million units in 2006.

In addition, the demand for freezers in 2004 reached 1.944 million, 1.9 million freezers in last year and 2.05 million freezers in 2006.

Demand for washing machines in 2004 reached 844,000, 900,000 washing machines in 2005 and 1.05 million washing machines in 2006.

In addition, the demand for television sets in 2004 reached 4.476 million, 4.9 million television sets in 2005 and 5.7 million television sets in 2006.

Also, the demand for air conditioners in 2004 reached 898,000. 1 million air conditioners in 2005 and 1.15 million air conditioners in 2006.

Rachmat stated that smuggled electronic products were dominated by well-known brands that local manufacturers also produced.

Those smuggled electronic products were allegedly made by Chinese as well as a number of ASEAN country producers and were sold for far cheaper prices than local products.

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