Indonesia Consumer Electronics Report Q1 2016
BMI View: Depreciation of the rupiah against the US dollar was a drag on consumer electronics spendinggrowth in Indonesia in 2014 and 2015 - and we expect it will continue to erode the affordability of importeddevices for Indonesian households in 2016. There is however a much stronger medium term outlook, withdevices spending growth forecast to accelerate markedly from 2017 as economic growth strengthens andthe rupiah appreciates significantly against the US dollar 2017-2019. Other factors making a positivecontribution to the consumer spending growth story will include favourable demographic dynamics, risinglevels of urbanisation, and declining device prices. Overall, market growth will see the market reachUSD18.09bn in 2019, equal to a compound annual growth rate of 6.3% in US dollar terms 2015-2019.
Latest Updates & Industry Developments
Computer Hardware Sales: USD4.68bn in 2016 to USD6.95bn in 2019, compound annual growth rate(CAGR) of 8.1% 2016-2019. Short term outlook downgraded to reflect economic weakness, includingdrag of depreciation on affordability, but over the medium term underlying income growth will deepenthe market as large numbers of households gain the disposable income for PC purchases for the first time.
AV Sales: Rising from USD2.13bn in 2016 to USD2.41bn in 2019, CAGR of 3.5% 2015-2019. Risingincomes will drive spending growth, particularly in the TV set markets as households upgrade to LED/LCD models, but this will be partially offset by the squeeze on audio device and digital camera demandfrom the rise of multi-functional smartphones.
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