Retail in Asia

In Trends

Indonesian companies spend USD557m on IT hardware in last 6 months

Indonesian corporations spent around USD557 million on some 1,150,000 units of IT hardware during the six-month period from April to September 2012.

According to the latest from GfK Indonesia, sales come from across four major IT product groups – desktop PC, laptop, monitor, and printer, the corporate sector – and constitute a substantial 44 and 32 percent in sales value and volume to the total IT market in the country, respectively.

GfK Indonesia has been conducting retail audit of technical consumer goods for over two decades. In April 2012, the company also commenced tracking of B2B sales in the IT sector, covering transactions from corporate customers such as government as well as small and medium businesses.

Among the four IT product groups, corporate demand was highest for desktop PCs, which chalked up 460,500 in sales volume worth slightly more than USD 300 million during the tracking period.

Monitors garnered the next highest sales quantity at 425,000 units, although value wise, the laptop segment was the next biggest revenue generator, garnering more than USD158 million.

Guntur Sanjoyo, general manager of GfK Indonesia, said B2B monthly sales during the six-month period, which saw heightened demand towards the end of quarter three, were attributed mainly to the rollout of government projects and also realization of projects in businesses which had been postponed in August due to Hari Raya Idul Fitri long holiday.

GfK noted that Indonesia’s end-users in general have a greater tendency to purchase laptops instead, spending close to USD516 million on 1,160,500 laptops.

Desktops, on the other hand constitute a much lower proportion of the overall retail sales value and volume at 14 and 9 percent.

Total revenue sales in the two other IT product categories of monitors and printers were also largely driven by the retail sector, where consumers contributed 49 and 61 percent, as compared to the corporate sector which occupied 43 and 34 percent respectively.

"Looking ahead for 2013, it is estimated that the B2B sector will be inclined to perform well, steered by the positive investment trend in Indonesia’s private sector and the constant flow of projects in the government sector,” Sanjoyo said.