The electronics industry has been at the forefront of economic development and has been accorded high priority by governments in developed and developing countries. The escalating demand for consumer electronics, hardware and audio-video devices has raised the profile of the industry in world economies. The United States, Japan and the European Union, which are renowned for manufacturing electronic goods commodities, play a significant role in electronics trade. Meanwhile, Latin America and the Middle East have nascent electronics industries, and are dependent on imports. The electronics industry is highly dynamic and is typified by continuous innovation and product development. This, in turn, has led to a surge in demand from countries with low production potential. Electronics such as semiconductors and integrated circuits are gaining traction in tandem with consumer durables.

Indonesia is a regional production base for many electronic products. Apart from fulfilling the fast-growing domestic demand, the electronics industry in the country also contributes significantly to exports. The country’s accession to the World Trade Organisation (WTO) has created a favourable environment for electronics trade and domestic manufacturing. This, coupled with a convenient demographic structure, is fostering the growth of the electronics industry. Indonesia’s strong dependence on its domestic market and astute monetary and fiscal policy measures to control budgetary deficits and inflationary pressures helped it tide over the global economic downturn. These robust economic fundamentals are reflected in the growth of its electronics industry, which is characterised by a well-developed consumer electronics sector and an emerging electronic components sector. The country’s intense competitiveness in the household electronics sector, along with rising incomes and low labour costs, is expected to boost investments in the industry. The escalating demand for PCs and smart phones and new government incentives for the component industry are further promoting investments. A conducive policy environment, burgeoning electronics demand, substantial potential for the manufacture of consumer durable goods and availability of a large labour pool will help create an advanced electronics industry in Indonesia.

The following benefits are offered by this research:

Identify New Market Opportunities

The trends of the economic environment of Indonesia have been analysed along with their impact on the electronics industry. This analysis will provide valuable information to industry participants on opportunities in specific sectors of the industry.

Comprehend Future Industry Trends

The research service gives an insight into Indonesia’s electronics industry, discusses its dependence on the prevailing economic scenario and describes the various infrastructure developments in the industry. This will enable participants to gauge the future direction of the market and help them devise appropriate strategies to improve their share.

Understand the Economic Environment

A detailed analysis of the economic framework of Indonesia’s electronics industry provides insights into the economic parameters as they exist and the future direction of the same. This is particularly beneficial in the case of the electronics industry, as these economic indicators form an important criterion for industry performance.

Devise Country Entry Strategies

The research service provides valuable information and analysis of the strengths and weaknesses of the economy of Indonesia, which are relevant to the electronics industry. This is particularly useful in devising country-specific strategies for industry participants.

Evaluate Industry Segment Potential

This research service is focused on the electronics industry in Indonesia with detailed coverage of the economic and infrastructure indicators affecting the industry and their future direction. It provides both country and industry trends and forecasts for major variables and is an excellent tool for companies that plan to enter new geographic markets. This will also help corporate planners in developing accurate business plans.

TABLE OF CONTENTS

Executive Summary

Political Analysis

Economic Analysis
     
Social Analysis

Technology Factors

Legal Factors

Environmental Factors    

Electronics Industry   

LIST OF FIGURES

Economic 360 Perspective: Budget Allocation to Ministries (Indonesia), 2009-2010            
Economic 360 Perspective: Foreign Direct Investments (Indonesia), 2004-2010                
Economic 360 Perspective: Economic Indicators (Indonesia), 2004 and 2010                    
Economic 360 Perspective: Demographic Statistics (Indonesia), 2010                               
Economic 360 Perspective: Employment Indicators (Indonesia), 2007-2010                       
Economic 360 Perspective: Sectorwise Foreign Capital Ownership Limit (Indonesia), 2010 
Economic 360 Perspective: Negative Investment List (Indonesia), 2010                             
Economic 360 Perspective: Business Taxes and Specific Taxes on Corporations (Indonesia), 2010       
Economic 360 Perspective: Personal Tax Rates (Indonesia), 2010                                   
Economic 360 Perspective: Environmental Issues and Government Initiatives (Indonesia), 2010       
Economic 360 Perspective: Key Environmental Agreements (Indonesia), 1958-1998           
Economic 360 Perspective: Key Environmental Indicators (Indonesia), 2010                      
Electronics Industry: Overview (Indonesia), 2010     
Electronics Industry: Key Industry Indicators (Indonesia), 2009 and 2010                          
Electronics Industry: Indicators of Consumer Electronic Segments (Indonesia), 2009, 2010 and 2014   
Electronics Industry: Business Opportunities (Indonesia), 2011-2014     
                           
LIST OF CHARTS

Economic 360 Perspective: Political Transition (Indonesia), 1999, 2002, 2004 and 2010     
Economic 360 Perspective: Timeline of Election Trends (Indonesia), 1967-2010                 
Economic 360 Perspective: Budget Deficit (Indonesia), 2004-2014                                    
Economic 360 Perspective: Fiscal Policy (Indonesia), 2008-2010                                     
Economic 360 Perspective: Bank Indonesia Rates and Inflation Rates (Indonesia), 2005-2010            
Economic 360 Perspective: Exports, Imports and Trade Surplus (Indonesia), 2004-2014     
Economic 360 Perspective: Membership in Various Organizations (Indonesia), 2010          
Economic 360 Perspective: Industry Growth Rate (Indonesia), 2004-2010                          
Economic 360 Perspective: Exchange Rate (Indonesia), 2004-2010                                  
Economic 360 Perspective: Current Account Balance (Indonesia), 2004-2010                    
Economic 360 Perspective: Economic Growth Trends (Indonesia), 2004-2014                    
Economic 360 Perspective: Health Expenses by Category (Indonesia), 2010                     
Economic 360 Perspective: Labor Laws (Indonesia), 2010  
Economic 360 Perspective: Key Environment Issues (Indonesia), 2010                             
Economic 360 Perspective: Strategies Set by the Green Paper for Various Sectors (Indonesia), 2010    
Electronics Industry: Organizational Structure (Indonesia), 2010                                     
Electronics Industry: Production and Imports (Indonesia), 2004-2010                                
Electronics Industry: Future Projects (Indonesia), 2011-2014                                         
Electronics Industry: Imports and Exports of Electronic Goods (Indonesia), 2004-2014       
Electronics Industry: Growth in Consumer Electronics Sector Revenues (Indonesia), 2009, 2010, 2014   
Electronics Industry: Composition of Consumer Electronics Market (Indonesia), 2010