Safety & Security Equipment

Indonesia

 

Overview                                                                  

 

USD Millions                       2004            2005            2006 (estimated)

Total Market Size                 143.5            158.2           189.2

Total Local Production            20.0              22.0             22.0

Total Exports                          18.5              20.0             20.0

Total Imports                        142.0            156.2           187.4

Imports from the U.S.               8.2                9.8             11.8

Note: The above statistics are unofficial estimates.

 

The Indonesian security and safety equipment market offers excellent prospects for U.S. products.  These opportunities can be attributed to the increasing number of bomb incidents and bomb threats, the rising crime rate, increased levels of perceived insecurity by the population, as well as the priority of improving commercial and public safety.  Demand for security and safety equipment in industrial plants, commercial buildings, public facilities, oil/gas fields, mining operations, airports and seaports has increased substantially. Industry sources predict imports of safety and security equipment will increase by about 20% per year over the next two years. 

The total value of imported products in security and safety equipment rose remarkably in recent years. In 2004, the value reached $142 million, an increase of 118% from 2003.  Imports of U.S. products amounted to $8.2 million in 2004 and increased to $9.8 million in 2005. Other major suppliers are Japan, China, Germany, France, South Korea and Taiwan.

 

 

Best Products/Services                                            

 

The demand for safety and security equipment is predicted to increase by 20% per year over the next two years.  Metal detectors, security alarms, CCTVs, VTRs, bulletproof vests, walkthrough metal detectors, and access control systems are in a great demand.  In addition, there is also an increased demand for security services. Instead of having their own security guards, many building management companies prefer to outsource to private security companies.

 

Opportunities                                                                 

 

The U.S. holds 10 -15% of the security and safety equipment market in Indonesia and is a strong supplier of high-quality burglar alarm systems, video surveillance systems, detection systems and x-ray equipment. U.S. suppliers are facing strong competition from Japanese firms that have established good relationships with end-users in the government sector. In general U.S. products are well accepted, but they are perceived as “high-priced.”  Various infrastructure projects such as the development of seaports, airports, public transportation facilities, oil and gas exploration fields, trade centers, apartments and office buildings will need high technology security equipment such as access control systems, alarm systems, video surveillance systems, metal detectors, and x-ray or screening equipment.  In addition, GOI Police will need explosive ordnance disposal, intelligence equipment, forensic laboratory equipment and forensic computing equipment.

 

Resources                                                                        

 

The Indonesian National Police: www.polri.go.id