ELECTRONIC INDUSTRY NEEDS $2.5 BILLION IN INVESTMENT: MINISTER

Jakarta, June 2 (ANTARA) - Industry Minister Fahmi Idris said the country's electronic industry needs US$2.5 billion in investment to achieve the targeted growth of 7 percent this year.

"The electronic industry is targeted to grow 7 percent in 2009," he said here on Tuesday.

If the electronic industry grew 7 percent, an estimated 2,000 jobs could be created this year, he said.

To create a conducive business climate, the government had made various efforts, including lowering the tariff of luxury sales tax and tightening import procedures, he said.

Indonesia's exports of electronic goods contributed an average of US$7.1 billion to the state coffers every year, he said.

"We hope the figure will continue to increase (in the years to come)," he said.

The minister said domestic demand for electronic goods was estimated to reach Rp18.5 trillion last year.

In 2009 the domestic market for electronic goods remained stable and tended to increase as a result of the government's anticipatory measures to cope with the impact of the global economic slowdown, he said.

The anticipatory measures included controlling imports and providing local companies with fiscal incentives, he said.