Indonesia has experienced a rather harsh economic condition during the last five years. The Rupiah vis-a-vis the Dollar was also experiencing a very unfriendly relationship as the mighty Dollar soars to unimaginable level just a few years after the crisis began.

Now the economy has picked up pace, with the right political environment coupled with the right economic policy, every soul is hoping for the better. Businesses are already improving in the formal sector, slowly but surely, investors are seeking new investments, exports are also picking up. The next million dollar question in hand is "will this continue?"

One answer to the many unanswered questions is that businesses in Indonesia should continuously seek opportunity that could improve the economic conditions and achieve sustainable growth in the long term.

Providing an EMC Laboratory testing Facility for Electrical and Electronic (E&E) manufacturers in Indonesia is one answer to improving the situation, albeit not the entire answers to the nation's woes, but it specifically provides, among others, a good return-on-investment, savings on foreign exchange, affordable cost, jobs and last but not least is confirmed dates for testing as timing is crucial for the development of innovative products from the manufacturers.

Currently, E&E manufacturers send the product to be tested to either to South Korea, Singapore or Malaysia for EMC Certification. This is needed before they can send the finished goods to Europe, The U.S. or other parts of the world. All of these countries have strict requirements for the mandatory EMC testing and labeled with such certification before the goods can be shipped and received by the respective countries.

Developing an EMC Testing facility in Indonesia would require extensive research and a good deal of investment. Fortunately the research and investment have been provided, it only needs a good strategy and sense of business to start the process and

business.

An initial amount of Rp. 16 billion is needed to start the process, initial ground works have been prepared as well as commitments from the E&E manufacturers have been in order. This is important as the business relies much on early commitments.

Under most likely scenario, the proposal has a 45 months payback period and a certain internal rate of return 23.59% to support the investment.



Research Location: P. T. Sucofindo

Supervisor: Junius Tirok, Ph. D.

Accepted: 09 August 2003



Read at library only.