Indonesia is a democratic county with stable political system. The economy was relatively resilient during the financial down turn and is expected to remain stable during the forecast period. Indonesia is a regional production base for a number of electronic products. Along with fulfilling the fast growing domestic demand, electronics industry in Indonesia also exports a significant amount of goods. Rising incomes and low labor costs are expected to be the key drivers of the electronics market. Increasing demand for PC’s & smart phones and new government incentives for the electronic component sector present growth opportunities for this industry.