Electronic Industry Driven To Take Opportunities In The US Market

Activities of workers in the production process in the electronics industry. (Photo: Ministry of Industry)

JAKARTA - The Ministry of Industry (Kemenperin) encourages the domestic electronics industry to take advantage of export opportunities to the United States market, amidst the ongoing trade war with China. This strategic step is expected to be able to improve the trade balance deficit while simultaneously boosting national economic growth.

"Moreover, based on the roadmap of Making Indonesia 4.0, the electronics industry is one of the five manufacturing sectors that have priority development to be more globally competitive, especially in readiness to enter the industrial era 4.0," said Director of the Electronics and Telematics Industry of the Ministry of Industry, Janu Suryanto in Jakarta, Wednesday. December 18th.

Janu said that a number of national electronic industry players have exported their products to the United States. The value until the third quarter of 2019 is projected to reach US $ 1 billion. This achievement, an increase of about 10 percent over the same period in the previous year.

"What's new is the export of CCTV, the factory is in Tangerang. In addition, air purifier products have also been exported, and next year there will be an export of vacuum cleaners, "he said.

Janu said that exports to Uncle Sam's market are still quite prospective, especially for high-tech products. In addition, it is also encouraged to expand into non-traditional markets.

Janu also admits that he is optimistic that until the end of 2019, the electronics industry can continue to increase its export value. This is because a number of electronics industry companies in Batam, such as PT Satnusa Persada and PT Pegatron Technology Indonesia, have recently received new contracts to supply their products to the United States.

"The opportunity is still open because of the reduced supply of electronic products from China to the United States. In fact, LG Electronics Indonesia also plans to supply portable air conditioners to the United States in large numbers, "he explained.

Referring to data from the Central Statistics Agency (BPS) for January-August 2019, the export value of electric machines / equipment reached US $ 5.55 billion. Meanwhile, the import value of electric machines / equipment reached US $ 12.60 billion or decreased by around 10.97 percent compared to the same period last year.

Janu added that his party is also focused on spurring small and medium industry players in the electronics sector to be able to support increased productivity for large-scale companies. "For example, our IKM can supply chargers for vacuum cleaner products produced by large industries," he said.

Therefore, the Ministry of Industry will continue to invite IKM players to be further involved in the supply chain in the electronic sector. "We will help through technical guidance, certification and other facilities according to the prevailing laws and regulations," he said.

Furthermore, Janu emphasized that the government is also focused on encouraging the domestic electronics industry so that it is not only concentrated on assembly, but also involved in the supply chain with high added value. This strategic step was realized through, among others, increased investment.

Throughout 2018, the investment value of the electronics industry touched the figure of IDR 12.86 trillion, an increase compared to 2017 of IDR 7.81 trillion. "This year, there are several that will invest, for example LG wants to add more than US $ 100 million," he said.