From Government of Indonesia

$562m Investment Eyed for Electronics

The government hopes to see new investment of $562 million in the country's electronics and information technology sector this year, Antara reported on Wednesday (18/4/07).

The additional investment will be needed to keep pace with an estimated 10% annual increase in the domestic consumption of electronic goods, Industry Minister Fahmi Idris said.

Idris said the projection was also based on plans by a number of foreign principals to make Indonesia their production base.

In its five-year plan ending in 2009, the government has set an investment target of $2.5 billion in the electronics sector. To reach the target, the government is set to create a more conducive investment climate in the country, such as by reducing luxury sales tax, he said.

He said a delay in the plan to cut the luxury sales tax has resulted in the sluggish growth of the electronics industry, as the prices of electronic products in the country are higher than those of smuggled products.

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