In order to move Indonesia from a consumption-based economy to a manufacturing one, the Indonesian government has introduced “local-content” laws which requires imported products to contain a certain percentage of local content, meaning that the item is partly produced in Indonesia. Otherwise, importers will get their licenses revoked. The latest push is to get cell phone manufacturers to set up shop in Indonesia to comply with the law. That way, the local industry can be supported.
As expected, Indonesia is now facing criticism from many countries who export to the largest archipelago island in the world. So what we want to know is to what extent to do Indonesians prefer imported goods?
We surveyed 548 respondents and asked them about their preferences for local and imported products.
Every product that is purchased indicates where it is made from. Every other person sometimes takes a look at the label to see where a product is made (52.55%). About 1 in 3 say that they definitely look (32.66%).
1 in 5 respondents say that they are more likely to buy products that are ‘Made in Indonesia.’ Most respondents are on the fence about this; they say that it depends on the product (77.55%).
That means, for different products, people have preferences on whether they prefer it produced in Indonesia or abroad. Some key findings include:
People prefer their electronic goods to be made in Japan. People look to Japanese products for their TVs (60.95%), computer/laptop/tablet (42.7%), cars (38.5%), computer electronics (36.86%), and camera/video camera (48.91%). When it comes to cellphone, Korea leads in this field (34.49%).Indonesian-produced goods are sought after in terms of clothes (67.88%), cosmetics/beauty products (44.89%), shoes (44.89%) and sports products (32.66%).
Folks have reasons for wanting to buy ‘Made in Indonesia’ products. A desire to support the local economy is the most cited reason for buying locally-produced goods (54.01%). Almost just as many (49.45%) would buy a product made in Indonesia than one made abroad because it is cheaper. People also demonstrate national pride in buying locally-produced products (45.62%). One important reason respondents provided for buying Indonesian products is because they can be assured that the product is halal.
Though people have preferences for goods made in certain countries, we also discovered that a lot of people are unable to identify where certain brands originated from. More than half could recognize where Apple (81.2%), Samsung (70.44%) and Nike (65.51%) came from. For Indonesian companies such as Polytron and Polygon, only 29.38% and 29.2% respectively could recognize them. Most people believed that Adidas was from the US, but only 15.88% knew that it was from Germany.
For more detail you can download XLS report at the button below. JAKPAT report consists of 3 parts which are 1) Respondent Profile, 2) Crosstabulation for each question and 3) Raw Data. Respondent profile shows you demographic profiles ( gendr,age range, locationby province, and monthly spending). Cross tabulation enables you to define different demographic segment preference on each answer.
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