작성일자: 2014.11.28

작성자: 자카르타 무역관 Kim EunHee(ehkim@kotra.or.kr), Ade Agustian(ade@kotra.or.id)

1. Import Duty

 ○ According to Indonesia Customs Tariff Book, HS Code heading 854420 is described as follows:

Import Tariffs and Taxes of HS Code 8544.20

 ○ Import duty tariff under the framework of ASEAN-Korea Free Trade Area (AKFTA) is lower than the import tariff entry that applies in general. Those are imposed on imported goods which include the Certificate of Origin (Form AK) which have signed by the competent authorities in the countries concerned. In case the general import duty tariff is lower than in the ASEAN-Korea Free Trade Area (AKFTA) as contained in the Appendix, the general tariffs rate is applied.

2. Import - Export Trend

 Indonesia Import Value of HS Code 8544

January-December

25 Major Exporter Countries of HS Code 8544

3. Competition Trend

 ○ Currently, there are so many power strip and electricity switch products in Indonesian market. It will be challenging for new product to enter the market. China is the key player and its product has competitive advantage considering price factor. Price is the important factor in Indonesian market for power strip and electricity switch. But it is not absolute because some distributors or users still emphasize on good quality than cheaper price.

 ○ Regarding to Mr. Diky, Director of PT Royal Delta (local distributor company), power strip and switch product are still needed in the industry, but the market already has many players, so more effort is needed to enter the market. PT Royal Delta itself not only provides to end user but also supply to manufacturer that using switch product.

 ○ Mr. Afuk from SinarGemilang Electric (also local company) explained that cheap price still mandatory for power strip and switch products. China products are many in the market, so for new products will be difficult to enter the market. If the new product is going to enter the market, it musthave competitive price.

 ○ Europe products also have a good demand because of the quality and brand image. Hanyoung NUX are the Korean’s that found the market.

4. Retail Price

 ○ As already mentioned before, competitiveness in price is considered as the most important in Indonesian market for power strip and electricity switch. Product from China usually doesn’t have a particular popular brand (no brand) but it dominates the market (with price range Rp 30,000-Rp 50,000).

 ○ Meanwhile products from another countries usually targeting higher segment and they positioning themselves as high-class product with more expensive prices (above Rp 100,000).

5. Distribution Channel

 ○ Power strip and electricity switch are distributed through local importer and then go to supplier or local distributor then finally to end-users. It is also possible the importer is a supplier itself. It is quite rare when the end-users in Indonesia get its product directly from foreign manufacture, unless it is local manufacture: