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How the Indonesian Presidential Election
Impacted OEM Printer Sales and Toner Consumables.
The Indonesian presidential election in April 2023 was one of the most contentious and polarizing in the country’s history, pitting the incumbent president Joko Widodo against his former rival Prabowo Subianto, a former general and defense minister. The election had significant implications for the country’s economy, politics, and society, as well as for the printer market, which faced challenges and uncertainties amidst the electoral turmoil.The Economic and Political Uncertainty.
The presidential election was held amid a slowing economy, rising inflation, and a weakening currency, which affected the consumer and business confidence and spending. According to the World Bank, Indonesia’s GDP growth decelerated to 4.8% in 2023, the lowest since 2009, due to weak domestic and external demand, trade tensions, and policy uncertainty. The inflation rate rose to 6.8% in April 2023, the highest since 2014, driven by higher food and fuel prices, as well as the depreciation of the rupiah, which lost 12% of its value against the US dollar in 2023.The political uncertainty also increased as the election campaign was marred by allegations of fraud, corruption, and violence, as well as the use of divisive identity politics and fake news. The election result was disputed by Prabowo, who claimed that he had won the majority of the votes and accused Widodo of electoral manipulation and irregularities. Prabowo challenged the official result, which showed that Widodo had won 55.5% of the votes, in the Constitutional Court, but his appeal was rejected in June 2023.
The election aftermath was marked by social unrest and violent protests, especially in Jakarta, where supporters of Prabowo clashed with the security forces and demanded a recount of the votes. The protests resulted in at least eight deaths and hundreds of injuries, as well as damage to public and private property. The government deployed tens of thousands of police and military personnel to restore order and security, and also blocked access to social media platforms to prevent the spread of misinformation and incitement.
The Impact on the Printer Market
The economic and political uncertainty had a negative impact on the printer market, which includes inkjet, laser, and serial dot matrix (SDM) technologies. According to IDC, the Indonesian hardcopy peripherals market declined by 9.9% year over year in the first quarter of 2023, as consumers and enterprises postponed their spending on printers and consumables. The election also led to disruptions in the supply chain and distribution of printers and consumables, as well as the demand from end-users, especially in the government, education, and retail sectors, which were affected by the electoral process and the subsequent protests.The printer market also faced competition from alternative technologies, such as cloud computing, mobile devices, and digital platforms, which reduced the need for printing and paper consumption. Moreover, the printer market faced environmental and regulatory challenges, such as the increasing awareness and demand for green and sustainable products, as well as the stricter enforcement of intellectual property rights and anti-counterfeiting measures, which affected the availability and affordability of compatible and remanufactured cartridges.
Despite the challenges, the printer market also had some opportunities for growth and recovery, such as the increasing adoption of ink tank models, which offer lower printing costs and higher page yields, as well as the growing demand for multifunction and color devices, which offer more functionality and value-added services. Furthermore, the printer market also benefited from the government’s stimulus and recovery programs, such as the tax incentives, subsidies, and infrastructure projects, which aimed to boost the economic activity and confidence in the post-election period..
The Indonesian presidential election in April 2023 was a critical event that had a significant impact on the country’s economy, politics, and society, as well as on the printer market, which faced challenges and uncertainties amidst the electoral turmoil. The printer market experienced a decline in the first quarter of 2023, as the economic and political uncertainty affected the consumer and business spending, as well as the supply and demand of printers and consumables. However, the printer market also had some opportunities for growth and recovery, as the economic and political situation stabilized in the post-election period, and as the market shifted to more innovative and sustainable products and solutions.
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