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The 13th Edition of INATRONICS 2024

JIExpo Kemayoran, Jakarta – Indonesia

 

Prospect of Indonesia’s Electronics Market

Indonesia with over 278 million people is the largest economy in ASEAN and also one of the 5 largest consumer electronics markets in the world. The electronics industry of Indonesia has been experiencing a period of rapid growth. According to the Indonesian Electronics Producers Association (Gabel), domestic sales of electronic products typically increase by around 11% every year. In Indonesia, the electronics industry includes various subsectors from semiconductors to consumer electronics.

It is very important to note the shift of electronics manufacturing from Japan, Taiwan, South Korea, and Singapore to four countries in Southeast Asia of which one is Indonesia. Indonesia has benefited from the relocation of electronics manufacturing centers from Japan, Taiwan, South Korea, and Singapore. This relocation was mainly caused by the appreciation of the currencies of these countries. Another factor was the fact that several countries in Southeast Asia including Indonesia began to encourage electronics manufacturing in their countries.

The electronics industry is one of the manufacturing sectors that gets development priorities in digital transformation in accordance with the Making Indonesia 4.0 roadmap. The increase in investment in this industry was reflected in January – September 2021 period, which experienced an increase of 7.8% compared to the same period in the previous year or worth Rp 59.4 trillion ($ 4 bn). And until September 2021 exports of the electronics industry reached US$ 1.8 billion or equivalent to Rp. 25.9 trillion. This number increased by 98% compared to the same period the previous year (year on year/yoy).

The electronics industry is one of the leading sectors and included in the Making Indonesia 4.0 program. In which Indonesia’s electronics exports reached US$9.4 billion or Rp144.2 trillion from January to July 2022. This figure rose 18.9 percent compared to the same period the previous year of US$7.93 trillion. The electronics sector is Indonesia’s fourth largest export contributor.

And the electronics industry is one of the manufacturing sectors that gets development priorities in carrying out digital transformation according to the Making Indonesia 4.0 roadmap. With a larger economy, as well as more diversified types of industries, Indonesia’s MVA (Manufacturing Value Added) outperforms other ASEAN countries such as Thailand and Malaysia.

 

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Mr. Alex Tan, Director of MTSC Innovation Sdn Bhd

Indonesia is a good market for industry because we are seeing lots of growing opportunities in this country. This show is a mega exhibition, crowded and various industries. We are seeing a lot of opportunities also got a lot of contact from the potential customers.  
 

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