Full text: The electrical equipment market of the Netherland East Indies

of this bureau. A laboratory is maintained at Bandoeng, and various 
types of equipment are tested upon the payment of certain stipulated 
fees. Approval by the Government does not necessarily mean that 
it will purchase or recommend the purchase of the material tested, 
but it does mean that the results of the tests will be accepted by local 
buyers as definitive evidence of the equipment’s technical qualifications 
forlocal use. Satisfactory tests arerequired of Government purchases. 
Definite consumer preferences are shown certain manufacturers 
because of the more favorable terms quoted by them as compared 
with American firms, particularly in the field of heavy equipment. 
It is said that some of the German firms are prepared to grant almost 
any terms in order to introduce certain types of equipment where 
there is a possibility of doing a large volume of business at a later 
date. In addition, some of the large engineering houses representing 
German firms will undertake the financing of extensive projects in 
order to obtain the contract for the entire job. 
As a rule, important orders for electrical equipment are accepted 
[rom buyers on terms of one-third down, one-third on delivery of 
goods, and the balance after the installation is complete. If, however, 
the purchaser is fairly reliable yet unable to meet these terms, the 
European branch houses or the local agents of European firms usually 
grant longer terms. It is said that some of the large engineering 
houses will grant terms extending over & period of several years, if 
necessary to secure the business. Usually the large engineering or 
import house that an American manufacturer would have as his 
agent would accept almost any terms if there was a possibility of 
doing business. However, few firms in Java would be willing to in- 
vest any large sum of money in stocks that were not being rapidly 
moved. American firms usually demand a letter of credit for heavy 
electrical equipment, but the lighter lines are sold on terms ranging 
from 30 to 90 days after acceptance. The usual terms granted by 
American exporters should not present any great handicap to the 
development of business in the Netherland East Indies. 
To summarize the consumer preferences shown in the purchasing of 
electrical equipment, it would appear that there are no outstanding 
reasons why American manufacturers can not secure a larger share of 
the electrical trade of the territory if they are prepared to concentrate 
on this market to the same degree that their continental competitors 
have done. 
Electrical equipment is sold in the Netherland East Indies through 
the following outlets: (1) Branch houses; (2) general engineering 
firms, (3) general importers, (4) manufacturers’ agents, and (5) 
Chinese importers. . 
Branch houses usually carry a fairly heavy stock of the goods manu- 
factured by their respective firms, which in some cases represents a 
complete line of electrical equipment. There are also branch houses 
of firms specializing in the manufacture of only a few large volume 
lines of equipment. 
The general engineering firms sometimes hold agencies of large 
electrical manufacturers and usually have one or more factory rep-

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