TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Govt seeks local alternatives for imported electronics
The government wants to boost the manufacture of local substitutes for mostly imported goods like air conditioners, washing machines, personal computers, printers, LED lamps, fiber-optic cables and digital cameras.
Change Size
A young man plays with his smartphone while waiting for customers in front of his electronics shop in Jakarta on Jan. 19, 2018. (AFP/Bay Ismoyo)
T
he government is encouraging businesses to replace imported electric and electronic products with local substitutes, especially as the COVID-19 pandemic has increased demand for such goods.
In 2021, US$22.33 billion worth of electronics accounted for 11.38 percent of total imports, Statistics Indonesia (BPS) data show. The figure marked a 17 percent increase from a year earlier.
Kasan Muhri, who heads the research and development department at the Trade Ministry, said an import substitution policy followed a global trend in which electronics became “the most sought after” type of products these days.
“The import substitution policy, especially for electronics and telematics, is in line with the national priority program, namely [increasing the share of manufactured products in overall exports],” Kasan said in a virtual discussion on Wednesday.
The government has long pushed for import substitution in regard to various products, including by encouraging companies to carry out research and development through generous tax deductions.
Read also: Government encourages innovation to reduce raw material imports
Manufactured products, in fact, already account for the overwhelming majority of exported goods, followed by mining products, oil and gas, and agriculture, according to BPS.
