Market size of refrigerators increases fast amid tightcompetition. (Industry Profile).

The country's household electric equipment industry including refrigerator industry has beencategorized as sunset industry or footloose industry because of the steady development of itstechnology. If there is any change it is only in features. The technology used in refrigerator industryis easily available as generally the industry uses sets of equipment that are generally used in themanufacturing industries such as plastic injection molding machine, vacuum forming, steel railforming, various machine tools and handling equipment.

With those characteristics, electric equipment industry is easily relocated to any place whereproduction cost is lower or where operation is more efficient such as in place where labor cost ischeaper, or electric tariff and tax facility are more attractive. This industry is expected to continue tosurvive as its product is needed by the people especially people of middle to high class. Especially inIndonesia with its tropical climate, refrigerators will be more necessary to preserve food.

The decline in the purchasing power of the people as a result of the financial crisis in 1998 caused asharp fall in the market size of refrigerators to only 399,203 units, but in 1999, the market recoveredimmediately with sales rising to 582,835 units in 1999. Sales even surged to an estimated 973,775units in 2001.

Sharp, National and Sanyo, all Japanese brands--maintained the position as the market leaders afterthe crisis, but there were also factories that had to be closed such as that of PT Lippo Nelco, whichproduced Mitsubishi refrigerator. There were quite many local brands of refrigerators before thecrisis hit the country, but only Maspion, Cosmos, Daichi and Polytron managed to weather thedifficult period. Other brands like Sapporo have been defunct. However, there were also new brandappearing during the crisis such as Sanken. Sanken uses two local brands but its components areimported from China and Japan. Meanwhile Samsung, which is still imported in built-up form fromSouth Korea will be assembled in the country. An assembling plant for Samsung is expected to beoperational in 2004.

Process of producing refrigerators

There are 14 phases to go in the process of producing refrigerators namely fabrication, spotwelding, painting, vacuum forming, sealing assembly, evaporator assembly, condenser assembly(suction line), cooling unit, sub assembly and packing.

Fabrication is a process of producing parts and components using steel sheets as basic material.Parts produced in this stage are cabinets, doors, lower cover and hinges. The process ofmanufacturing begins by putting steel sheets in roll to cutting machine, followed with the productionof cabinet and other parts with bending machine.

Spot welding is the next process after fabrication namely assembling parts through welding on thetips of the components. Welding is made with special electric welding machine. The next process ispainting. After being assembled into one unit, the cabinet of refrigerator is sent to the paintingshops to be painted. The parts to be painted are the cabinet, doors, legs and the evaporator. Beforebeing painted, the parts are first washed with water and chemical mixture.

The painting process is both with automatic and manual systems. Automatic painting is made in aclosed room where fast rolling disk is used to spray the paint on the components. Before and afterthe process of automatic painting, manual spraying is necessary to paint parts that could not bepainted well in automatic process. After that is drying in oven.

In the process of vacuum forming, with the help of heating and molding machine, the interiorcomponents of refrigerator are produced from ABS plastic material. In this process the basicmaterial is cut and molded to have the desired form. The doors and the cabinet are fixed, to befollowed with the process of sealing and door assembly that is part of painting shop which is fixedwith condenser pipe and then insulated. Inner liner and inner door are then fixed before being readyto be filled with urethane.

Urethane is filled into insulator through injection. Insulator is necessary to maintain the temperaturein the refrigerator. The process is by fixing mold in the cabinet and then put into machine to beinjected with a mixture of premix, cyclopentane isocyanate. The process will take one hour.

TIG or aluminum welding material in the production of evaporator is welded first before being sentto the assembling unit. Evaporator is a place for freezing to produce ice. The material for evaporatoris produced not in the factory. Suction is fixed in this section and is welded with copper. Plasticcover is then provided and molded with bending machine. Copper pipes are cut with automaticmachine for condenser assembly (suction line) and then plastic cover is provided.

In the cooling unit, there are four types of activities namely fixing of compressor, vacuuming, gasfilling and wiring or cable connection. After the compressor has been fixed, the connecting pipe iscovered with vaseline. After the pipe has been welded there is the process of vacuuming usingspecial equipment. After that it is filled with cooling gas, to be followed with the process ofconnecting with cable and tying the cables with plastic.

In the sub assembly or cabinet assembly the process of assembling refrigerator from half finishedcomponents will take place. After being filled with urethane, the cabinet is put over a falet and thenthe legs which are already painted, hinges, control box and the evaporator are fixed. For a two doorrefrigerator, coil and fan are used. The last is the fixing of doors.

Final assembly--This process includes cleaning, fixing of accessories, final check and packaging orcleaning with cloth and air. Accessories fixed inside include racks for egg, ice cubes and vegetable,freezing section and meat cover and drinking water section. Fixing outside include sticker anddirectory book. The last process sis packing with carton box and small plate and Styrofoam tofunction as cushion.

Machine, equipment and basic materials

The main machines to produce refrigerator are press and bending machines to produce the doorsand walls from steel plates, vacuum forming machine to produce inner parts from ABS plasticmaterial, urethane injection machine to produce insulator between the walls and machine producingevaporator.

PT Sanyo has a complete facility to produce refrigerators. The factory which was built in 1995 has aproduction capacity of 320,000 units in two shifts. Almost all main components are produced by thecompany excepting compressor that has be produced by other company namely PT SanyoCompressor Indonesia.

Maspion factory has been integrated with component industry but part of its small componentsespecially main components are still imported such as thermostat and compressors for refrigeratorsand washing machines. Sanyo has already produced compressors but the price is not competitiveagainst imported products. Maspion also uses several components from China. Components such ascompressors produced by LG and Samsung are imported from distributors in Singapore.

The main basic materials for refrigerator could be categorized into steel plate, ABS plastic andurethane. See the following table.

Most electric industries including refrigerator industry began as assembling industry before beingdeveloped into full manufacturing industry, but no factory is able to produce all components as itwould not be efficient. The manufacturing levels of factories are not the same.

Multinational companies from Japan and South Korea generally have production facilities in variouscountries that it is not necessary to produce all components in a country. Sanyo has compressorfactory in Indonesia to supply its refrigerator factory in the country. National has a compressorfactory in Singapore, therefore the Indonesian branch has to import the component from Singapore.

It is not also necessary for a company group to produce all components. Some of the componentscould be bought from other companies. Sharp, for example, uses compressors produced by Sanyo orLG. Similarly with the case of injection moulding.

Capacity 1.88 million units

Based on data at the industry and trade ministry, the country has 12 companies actively producingrefrigerators with a total capacity of 1,884,000 units per year. Six of the companies are PT SharpYasonta Indonesia, PT national Gobel, PT Sanyo Industries Indonesia, PT Harapan Daya Utama, PTSumber Berkah Sakti, PT Top Jaya Antariksa and PT Astra Summit Electric.

They assemble components from various suppliers or components imported in a complete set. Thoseassembling component s imported in complete set are PT Harapan Daya Utama with the brand ofDaichi and PT Sumber Berkah Sakti using the brand of Sapporo & Ariston. The two brands are SouthKorean brands.

Those assembling refrigerators with components from different producers such as those producedthemselves as in house products and components produced under subcontract (out house), andimported components are mainly large companies including foreign (PMA) and domestic (PMDN)companies. The main components used by PMA companies are imported such as from Japan andSouth Korea. PLDN use both local and imported components.

PT Sharp Yasonta Indonesia is a PMA with an annual capacity of 480,000 units. The majorityshareholder of Yasonta was Firma Teladan, before Sharp Corp. decided to acquire 90% of theYasonta Group in 1994. Firma Teladan was closed in 1995. The shareholders now are Sharp Corp.holding 90% and Yasonta holding 10%. The company still concentrates on producing refrigerators,television sets, washing machines and air conditioner. Lately it started producing Simba audio.

PT National Gobel in Jakarta produces refrigerators with the brand name of National since 1971. Itis the fourth largest producer with an annual capacity of 272,000 tons. It is 60% owned byMatsushita Electric Industrial Co. and 40% by Gobel Internasional. The company also produceselectronic goods and other electronic products such as AC, electric fans, TV set, radio receivers,tape recorders, washing machines, electric water pumps, etc.

National Gobel has succeeded in weathering the crisis and has continued to expand. It is orientedmore to domestic market and it has developed marketing networks in the country. PT sanyoIndustries Indoensia has an annual capacity of 320,000 units per year. It is 45% owned by SanyoElectric Co. Ltd, 20% by Sanyo Electric Trading Co. Ltd and 35% by the family of SetiawanWongsodjojo. The company also produces AC, TV sets, washing machines, radio receivers and taperecorders. Lately it produced a new brand of refrigerator Emerald using the latest technology withanti rust PCM body and CQ compressor.

PT LG Electronic Indonesia is and Indonesia-South Korea joint venture producing refrigerator withthe brand name of LG with an annual capacity of 300,000 units. The company was first known in thecountry with the name of PT Godstar Astra as a joint venture in 1990. In 1999, LG sold 51% of itsshare ot Astra, but later LG took over the company again and made Indonesia as its main markettarget in Asean. In 2001, TV sets and refrigerators accounted for 70% of its sales with washingmachines, AC and other products making up the rest. See the following table.

Interest in investment low

BKPM issued very few license in refrigerator industry. The agency issued no license in the last twoyears. Tight competition in the market was probably one of the factors discouraging investment inthis industry.

The government has issued a series of regulations to encourage investment in the electric sectorsuch as a regulation allowing foreign investors to operate without partnership with local investors.The government has also provided tax facility such as reduction of corporate tax from 35% to 30%and exemption of import duty, surcharge, value added tax (VAT), luxury sales tax on basic material,components and capital goods for export oriented companies operating in bonded zone/EPTE.Facilities provided for PMA/PMDN include reduction of import duty on capital goods, basic/auxiliarymaterials for two year requirement from 5% to 0% and from >50% to 50%.

The facilities are also offered for companies undergoing restructuring such as expansion,diversification, and quality improvement and modernization of equipment. Import duty andsurcharge will be exempted for one undergoing restructuring more than 30% or more of theinvestment already made. Import duty exemption on machines and equipment is offered for oneundergoing restructuring less than 30%. Tax holiday is provided for pioneer industries.

Production rising to normal level

In the 1995-2001 period, the country's production of refrigerators grew fast--from 598,000 units in1997 to 953,270 units in 2001 or an annual growth of 16.5%.

The production plunged in 1998 when the crisis was at its worst, but in 1999, production rose to anormal level. The production rose following the improvement in the buying power of the peopleespecially those of the middle class. The buying power of the consumers grew with the rupiahstrengthening against the U.S. dollar However, despite the strong growth the capacity utilization isstill low. In 2001, the industry operated at 50.6% of its installed capacity. See the following table.

According to data at the Indonesia electronic association, sales of refrigerators in the first half ofthis year in the country was 481,500 units. Chinese products including non branded products, whichhave begun to pose a threat to other electronic products in the country, have not gained significantshare of the market of refrigerators in the country.

Imports surging

Indonesia imports refrigerators in CBU (completely built-up) and CKD (completely knocked down)forms. Refrigerators imported in CKD form are assembled with additional components from localsuppliers. Those in CBU form are imported by sole distributors like Cosmos from South Korea.National Gobel, Yasonta and Samsung imports large refrigerators for middle to high classconsumers.

Imports dropped by 20.4% to 22,482 units in 1998, but in 1999, import rose again and in 2000,imports totaled 98,804 units valued at US$ 15.15 million and it rose the figure rose further to114,216 units valued at US$ 17.11 million.

Imported ice boxes include refrigerator-freezer combination, household refrigerator of compressiontypes, household refrigerators of absorption type and other types. The type import most in volumeare combination of refrigerator-freezer combination as shown in the following table.

Singapore the largest suppliers

The largest supplier of refrigerators to Indonesia in 1998 was the United States, followed by SouthKorea and Japan. Japan, which had long been the main supplier, exported only 341 units toIndonesia in 1998.

Singapore took the lead in 1999. Imports from that country totaled 30,309 units that year or 49.7%Of the country's total imports. Now Thailand has become a major supplier accounting for 74.6% or62,180 units of the compressor types

Import duty 15% and Luxury sales tax 10-20%

Under a deregulation measure in June 1996, the import duties and surcharge on several types ofhousehold refrigerator were reduced. Import duty were slashed from 50% to 15%. The policy wasmade ahead of the AFTA scheme to be effective in 2002. The luxury sales tax, however, wasmaintained from 10% to 20%. The luxury sales tax prompted illegal imports, but smuggled productsdid significantly affect the market as consumers would risk buying smuggled products without brandas the quality is not guaranteed,

The government is expected to reduce the luxury sales tax on electric products includingrefrigerators next year. Earlier the luxury sales tax on components for broadcasting companiesincluding radio and TV stations were reduced from 20% to 0%. The tariff cut is expected to regainthe confidence of the international community in Indonesia and reduce smuggling.

The government has also issued regulation aimed at stamping out smuggling. Under a newregulation, the special importer identity number (NPIK) was issued as a special license to importhousehold electric equipment. The holders of the license are required to regularly report theirimport activities. Another regulation required the issuance manual directory book in Indonesianlanguage with guarantee card also in Indonesian language. However, so far only 70 of thoseregistered NPIK holders have made registration for manual and guarantee car in Indonesianlanguage.

Exports surging again

Exports were not the goal of household electric equipment industry when it was first developed.

Exports began only in 1994 when many factories were built with export orientation especially thoserelocated from abroad to the country from abroad. Later exports increased as shown in the followingtable. There is no regulation restricting trading of electric equipment including refrigerators. Thegovernment even encourages exports with drawback facility.

Japan the main market

The largest buyer of refrigerators from Indonesia is Japan to which exports totaled 32,092 units ofthe compressor type or 38.6% of the total exports of 83,071 of the same type in 2001. Exports toJapan are made mainly by Japanese companies operating in the country such as Sharp and Sanyo.

Other major buyers include Singapore to which exports totaled 10,335 units of the compressor type,followed by the Philippines to which exports totaling 9,307 units, Malaysia 8,732 units and Sri Lanka5,688 units. Non Japanese companies exporting Restaurant Refrigerator refrigerators fromIndonesia include LG Electronic Indonesia. That company exported around 2,500 units per month.See the following table.

Phase out

In 1997, Sharp, Sanyo and Matsushita made modification of their production line to use non-HF--134a as refrigerant. It is estimated that the refrigerant has been used for 30% of the refrigeratorsproduced in the country. A presidential decree in 1992 required the phasing out of refrigeratorsusing chloro fluoro carbon (CFC). In 1998, the government banned the use of materials that coulddestroy the ozone layer, in refrigerators and AC. The decision was in line with the ViennaConvention banning the use of material such as CFC-12 that could destroy ozone. CFC is found inmaterial still used in the country like R 11 and R 12 known as freon.

The industry and trade ministry issued a regulation:

-- Banning the production and sales of products containing ODS

-- Regulating procurement of ODS for use in refrigerator industry under after sales service

-- Determining the type of product that could use ODS and the type of ODS basic materials.

Hydro carbon is potential to be used as substitute refrigerant. In Europe HC has been used asrefrigerant. The type of HC used in Europe is Iso-Butane, which is used with special compressor.Meanwhile, Blend has been sold widely in the market as replacement for R-12.

Marketing Systems

Foreign companies notably Japanese companies generally separate producing companies fromdistributors or sole distributors. Sole distributors generally have branches in various large cities. PTSharp Yasonta Internusa, for example, is the sole distributor for PT Sharp Yasonta Indonesia. PTSanjaya Sakti and PT Prima Setrindo are the distributors for PT Sanyo Industries Indonesia.

The sole agents for National, Sanyo and Sharp have wide distribution networks covering all largecities in the country. The outlets for electric equipment in the past ten years expanded with theopening of modern supermarkets including hypermarkets in the country such as Makro, Carrefour,Goro, Alfa and special superstores for electric equipment and household electronic goods like Agis,Electronic City or Hartono Electronic in Surabaya.

Modern retail companies have expanded and they have strong bargaining power facing suppliers.National and Sharp have special marketing division to deal with hypermarkets as hypermarkets likeMaro and Carrefour will deal only with producers or sole agents. Currently modern retail companiesaccount for 10%-20% of the marketing of famous brands of electronic products. National, which hasa wide distribution networks, therefore, retail companies have little role in its marketing--not morethan 10%.

Tight Competition

The competition among the brands is quite tight especially among the old major brands that havegained popularity such as Sanyo, National, Sharp and Toshiba from Japan, followed later by Goldstarand Samsung from South Korea. The Korean products are no inferior in quality but they are sold atlower price compared with Japanese brands.

The tightness of the competition could be seen from the intensity of promotional drives throughmass media advertisements. LG spent Rp 7.3 billion for advertisement in the first five months of2002 to promote the sales of its TV sets and Rp2.5 billion for other electronic products includingrefrigerators, TV and cellular phone. LG also opens Website--Toko LG.com--and other activities tohelp promote its products.

LG the type of Expresscool for freezer, portable refrigerator, single door refrigerator, double door,three door, side by side type, and door cooling type (the first technology in the world blowing coolair not only from the back side but also from the door side through a ventilation in the door side).

Price varying

The prices of refrigerator vary widely between one brand and the other. The price of the Japaneseproducts are generally higher only because they have gained popularity and good reputation.

Luxury sales tax is a substantial element in the price of refrigerators. Luxury sales tax is stil imposedon other electronic products like TV sets, gas oven, hair dryers, water heater, camera and washingmachine. The rupiah fall especially in 1998 sent the price of refrigerator skyrocketing as many of thecomponents are still imported.

Market size recorded at 1,045,238 units

The market size of refrigerators has increased considerably despite the lingering crisis. In the pastfive years, sales of refrigerators grew by 17.9% annually peaking at 973,775 units in 2001 or farexceeding the sales of 596,390 units in pre crisis year of 1997.

The market leaders for refrigerators are Sharp, LG, National and Sanyo, followed by Mitsubishi,Hitachi and Toshiba. Toshiba is no longer produced in the country. The product is supplied throughimport only. PT Lippo Melco, which previously assembled Mitsubishi has also closed its factory.Samsung is also supplied through import from South Korea, but it is planned to be produced in thecountry in 2004. Local brands still managing to survive the crisis are Maspion, Cosmos, Daichi andPolytron. Other local brands such as Sapporo have disappeared from the market, but a new brand,Sanken, has made an appearance, assembled in the country. Sanken is a local brand but it usesimported components form China and Japan. Sales of Sharp has increase din the past three years--from 240,000 units in 2000 to 300,000 units in 2001 and to an estimated 500,000 units in 2002.

Sales of National refrigerator were valued at Rp180.44 billion in 2000 making it the second largest

contributor after audio to the total sales value of National Gobel. Sales of National refrigerator wereabout 15% of the total sales of the electronic products of National Gobel in value. Sales of its audiowere valued at Rp413.64 billion or 34% of the total sales of the products of National Gobel.

According to the Electronic Marketer Club (EMC) the market size of refrigerators in the countryrose 20% in 2000 from 1.25 million units in 2001. One door type of refrigerator contributes thelargest share of 70% to the total sales of refrigerators in the country. Two door type contribute only20% and freezer 10%.

With full line up products in various measures and models LG's Expresscool is set to grab a 24%share of the domestic market, which according to EMC will reach 1.5 million units in 2002. LGElectronic Indonesia is optimistic that it will has reach the highest sales target in the country thisyear. LG exports part of its production of refrigerators It said demand for the type of GR-212DV andGR-232DV has continued to increase especially in Asia. According to LG, orders have also come fromMiddle East and Africa. LG sets aside 2,500 units of refrigerators for export and 5,000 units to bedisposed of on the domestic market every month.

Conclusion

The impact of the economic crisis that began to hit the country late 1997, was bad on the country'srefrigerator industry but only in 1998. That year, when the crisis was at its worst, demand was weakresulting in a decline of 28% in production to 424,000 units from 590,000 units in the previous year.However, the industry recovered quickly in 1999 when production shot up to 619,000 units. Thesurge continued in the following two years to reach 953,270 units in 2001. The positive side of thecrisis is a leapfrog in exports--from 21,711 units valued at US$ 13.02 million in 1997 to 93,711 unitsvalued at US$ 20.56 million in 2001.

The progress made in the efforts toward political stability and rupiah stability and the reduction ofinterest rate gave a boost to the electronic industry including refrigerator industry. The condition isexpected to continue although tighter competition is almost certain to follow the brisk market. Tightcompetition will benefit consumers and give the business players a smaller margin as thecompetitors will be under pressure to keep the prices as low as possible.

However, the domestic market is highly potential with the population, the fourth largest in theworld. The per capita consumption of refrigerators in the country is still among the lowest in theworld, therefore, the market is still wide open. Meanwhile, the property sector has shown signs ofrevival. The revival of the property sector would contribute to increase in demand for refrigeratorsespecially from people of the middle to high income brackets that use the middle to high class typesof the property buildings especially in urban areas.

The market prospects, therefore, are still very encouraging for refrigerator industry in the country.According to the Central Bureau of Statistics (BPS) the country has 50.4 million households and 34.4million or 75% of which have enjoyed electric light. The 34.4 million households are all potentialmarket.

Table - 1

Basic materiala used by PT National Gobel

Description Capacity Physical form

Plastic 12.6 ton/month Solid

Metal 42.8 ton/month Solid

Corrugated box 3,206 pcs/month Solid

Styrofoam 445 kg/month Solid

Palet Wood 3,206p pcs/month Solid

Cupper Tube 1,408 kg/month Solid

Compressor 3,686 pcs/month Solid

Evaporator 3,686 pcs/month Solid

Paint 1,193 liter/month Liquid

Paint tinner 596 liter/month liquid

HCL 41 liter/month liquid

NaOH 186 liter/month liquid

Accelerator 72 kg/month Powder

C5H10 (sikoplenten) 527 kg/month Gas

Icocyanate 5.964 kg/month Gas

Premix 5.249 kg/month liquid

R134a 337 kg/month Gas

Acet, Oxy, Arg, N 300 m3/month Gas

Paper 65 kg/month Solid

Source: Data Consult

Table - 2

Producers of refrigerators and capacity, 1999

Producers Location Prod. Brand

of plant capacity

PT Sharp Yasonta Indonesia Jakarta 480,000 Sharp

PT Sanyo Industries Jakarta 320,000 Sanyo

Industries

PT LG Electronic Indonesia Banten 300,000 LG

PT National Gobel Jakarta 272,000 National

PT Kotobuki Electronics West Java

PT Maspion Indonesia East Java 100,000 Maspion

PT Asalindo Chanyu Agung West Java 100,000 -

PT Natric Jaya Industri Jakarta 41,000 -

PT Dinamika Industrial Jakarta 15,000 -

PT Hartono Istana Electric Central Java 15,000 -

PT Harapan Daya Utama West Java 13,000 Daichi

Total 1,884,000

Source: Department of Industry and Trade/Data Consult

Table - 3

Indonesia's production of refrigerators, 1997 - 2001

Year Production Growth

(units) (%)

1997 590,000 -

1998 424,600 -28.0

1999 619,000 45.8

2000 768,163 24.1

2001 953,270 24.1

Average growth 16.5

Source: Department of Industry and Trade/Data Consult

Table - 4

Imports of refrigerators by types,

1997 - 2001

(units/USS'000)

Types 1997 1998 1999 2000 2001

- Refrigerator-freezer 6,383 4,990 17,498 47,524 26,879

combination 1,216 576 2,527 6,685 3,854

- Household refrigerator 14,222 12,474 10,674 45,565 83,378

of compression type 3,778 1,734 973 5,074 11,710

- Household refrigerator 2,707 995 170 4,508 375

of absorption type 1,522 518 89 2,349 199

- Other types of 4,984 4,023 1,967 1,207 3,584

household refrigerator 1,167 1,482 725 1,045 1,344

Total 28,296 22,482 30,309 98,804 114,216

7,683 4,310 4,314 15,153 17,107

Source: CBS/Data Consult

Table - 5

Imports of refrigerators by countries of origin, 2001

Volume Value

Countries of origin (units) (US$'000)

Refrigerator-freezer Combination: 26,879 3,854

- Thailand 23,028 3,211

- Japan 1,869 267

- China 547 72

- South Korea 489 108

- Australia 276 109

- Others

Household efrigerator of Compression type: 83,378 11,710

- Thailand 62,180 8,922

- South Korea 9,308 1,810

- Japan 8,002 564

- Taiwan 1,270 173

- China 1,017 141

- Others

Household efrigerator of Absorption type: 375 199

- Germany 29 41

- Thailand 57 22

Others 289 136

Other types of household Refrigerators: 3,584 1,344

- China 603 135

- Thailand 669 395

- Others 2,312 814

Source: CBS/Data Consult

Table - 6

Taxes and import duty on refrigerators

Types Import duty VAT VAT

(%) (%) (%)

Refrigerator-freezer Combination: 15 10 10-20

Household efrigerator of Compression type: 15 10 10-20

Household efrigerator of Absorption type: 15 10 10-20

Other types of household Refrigerators: 15 10 10-20

Source: Department of Finance/Directorate General

Bea Import duty/Data Consult

Table - 7

Exports of refrigerators, 1997 - 2001

Year Volume (units) Value (US$'000)

1997 21,906 13,019

1998 47,279 11,394

1999 66,474 16,657

2000 78,251 18,796

2001 93,711 20,555

Source: CBS/Data Consult

Table - 8

Exports of refrigerators by countries of destination 2001

Country of origin Volume Value

(Units) (US$'000)

Refrigerator-freezer 5,952 1,252

Combination:

- India 4,442 895

- Japan 485 150

Others 1,025

Household efrigerator of

Compression type: 83,071 18,439

- Japan 32,092 8,506

- Singapore 10,335 2,280

- Philippine 9,307 2,280

- Malaysia 8,732 1,597

- Ceylon (Srilanka) 5,688 1,067

- Others 16,917 2,709

Household efrigerator of 561 213

Absorption type:

- Vietnam 137 35

- Philippine 118 50

Others 306 128

Other types of household 4,130 652

Refrigerators:

- Singapore 919 268

- Nigeria 397 28

- Taiwan 356 107

- Others 2,461 249

Total 93,711 20,555

Source: CBS/Data Consult

Table - 9

Prices of products of refrigerator in retailer level, 2002

Brand Code Type Price (Rp/Unit)

14 May - August 2002

LG GR 231 GVK 1 door 1,670,000

GR 191 TVG 1 door 1,509,000

LR 191 GVK 1 door 1,600,000

GR 212 DV 2 doors 2,224,500

National NRA 15 KD 1 door 1,525,000

NRA K5 ED 1 door 1,086,000

NRA K16 JD 1 door 1,553,000

NRB 18 KF 2 doors 2,492,000

Sanken SN 120 1 door 1,084,000

Sharp VR 199 1 door 1,699,000

SJ D 216 2 doors 2,742,000

SJ 58 L 2 doors 5,335,000

SJ 63 L 2 doors 5,720,000

Sanyo SR F 17 H 1 door 1,772,000

Source: Data Consult

Table - 10

Market size of refrigerators in Indonesia, 1997 - 2001

(Units)

Year Production Imports Export Market size Growth

(units) (units) (units) (units) (units)

1997 590,000 28,296 21,906 596,390 -

1998 424,000 22,482 47,279 399,203 -33.1

1999 619,000 30,309 66,474 582,835 46.0

2000 768,163 98,804 78,261 788,706 35.3

2001 953,270 114,216 93,711 973,775 23.5

Average

growth 17.9

Source: Department of Industry and Trade/Data Consult

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