The Association of Electronic Entrepreneurs (Gabel) projects moderate growth of the electronic industry by 5%-10% in 2024. This projection is contingent upon the anticipated effectiveness of import restriction regulations. Secretary General of Gabel, Daniel Suhardiman, believes that the import restrictions stipulated in Trade Minister Regulation No. 36/2023 can shield the domestic market from an influx of electronic product imports. "We'll monitor the implementation of Regulation No. 36/2023 first. The projection is a growth of 5-10% this year," said Daniel to Bisnis on Wednesday (6/3/2024). Daniel mentioned that for the electronic industry, more than 40 product categories have been subject to import restrictions, meeting the industry's long-standing expectations. These import restriction regulations can help curtail the flood of electronic imports and ensure increased productivity with more assured industry conditions.
Currently, imported electronic products include automatic washing machines, air conditioners, and kitchen appliances such as blenders and microwaves. "This is what the domestic industry has been waiting for, but it requires serious and strong commitment from the government to continue monitoring without compromise," he stated. However, the Industrial Competitiveness Index (IKI) has contracted since October 2023 due to the sluggish recovery of foreign markets and competitive pricing challenges against imported products. Additionally, challenges such as delayed raw material/component availability and shipping delays due to conflicts in the Red Sea and recessionary waves experienced by advanced countries like Japan and the UK pose further hurdles. "There's nothing exceptional about the demand increase this year, as the market was very poor in 2023," he noted. The flood of electronic imports has affected the growth performance of metal, computer, electronic, optical, and electrical equipment industries, which experienced quarterly declines in 2023. According to data from the Central Statistics Agency (BPS), the Gross Domestic Product (GDP) based on constant prices (ADHK) for these industries decreased by 17.32% in the second quarter of 2023, further dropping to 13.68% in the third quarter and 11.12% in the fourth quarter of 2024.
