Electronics Industry Needs US$2.5 Billion Investment
Tuesday, 20 June, 2006 | 12:38 WIB

TEMPO Interactive, Jakarta: The national electronics industry needs fresh investment amounting to US$2.5 billion or Rp22.5 trillion to reach the export target of US$9.5 billion in 2009. Currently the electronics industry is not growing significantly because it is still dominated by former business people and because of low investment.

Director of the Electronics Industry at the Department of Industry, Abdul Wahab, said the electronics industry has only grown between 12 to 13 percent per year. The impeded economic growth is also caused by frequent demonstrations. This triggered the investment climate to be unfavorable.

Abdul also said, now the national electronics production value is Rp91.2 trillion. This dropped from the production value in 2004, which was Rp94.1 trillion. “Nevertheless national product utilization is 68.3 percent,” he said yesterday (19/6)

According to Abdul, some of the previous companies who dominate the electronics industry include those from Japan and South Korea. The total is not more than eight companies. Then China entered the arena. “But the investment is not so large,” he said

Fery Firmansyah