Indonesian Producers to Lower Prices of Electronic Goods
May 28, 2003
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Prices of electronic goods in Indonesia are expected to decline next month following the strengthening of the Indonesian rupiah (Rp) against the U.S. dollar, which is about Rp 8,100 per U.S. dollar, a source said.
"Manufacturers, who have bought stocks of raw material at the rate of Rp 8,500 per U.S. dollar, will not be able to lower prices of the electronic goods immediately. Thus, it is expected that the price reduction will happen next month or late in June," Sung Khiun, a member of Electronic Marketers Club [EMC], said yesterday.
However, he said the decision of whether or not to lower the prices would depend on the respective manufacturer's policy.
"The strengthening of the rupiah is actually positive to the electronic goods industries, as it would raise the domestic purchasing power. However, another important point is the stability of the rupiah as it would help the manufacturers account [set] their business planning," Sung Khiun said.
According to Mr. Khiun, the most probable electronic goods that would soon meet the rupiah's current rate are the imported products.
"Perhaps next week, much of the imported electronic products prices would decline," he added.
Sung Khiun said during the last 2 months the electronic industries had actually reduced prices of some of their products because the market demand failed to rise.
"For instance, prices of LG products went down last week, which were ranging from 3 to 4 per cent in a bid to expand the market segment in Indonesia," he said. (ANTARA, Asia Pulse)
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