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Indonesia Information Technology Report Q1 2013

  • Publication Date:December 2012
  • Publisher:Business Monitor
  • Product Type: Report
  • Pages:77
  • ISBN:174594

Indonesia Information Technology Report Q1 2013

Includes 3 FREE quarterly updates
BMI View: Indonesian IT spending is expected to reach US$6.7bn in 2012, up 12%, although BMI has
downwardly revised its forecast due to our expectation of a deteriorating investment climate. BMI still
expects the Indonesian market to be one of the region's fastest-growing IT markets over our five-year
forecast period. In 2013, continued strength in government spending should offset an expected
deceleration in household demand. PC penetration remains at below 10%, giving this huge market
unrivalled long-term growth potential. Rising computer penetration and growing affordability should
ensure that the market remains firmly in positive growth territory.


Headline Expenditure Projections
Computer hardware sales: US$4.2bn in 2012 to US$4.7bn in 2013, +11% in US dollar terms. Forecast
in US dollar terms downwardly revised after a slowdown in H112, but growing affordability and credit
availability are driving sales in the consumer segment.
Software sales: US$687mn in 2012 to US$800mn in 2013, +16% in US dollar terms. Forecast in US
dollar terms upwardly revised due to analyst modification although progress will depend on the success in
bringing down illegal software use.
IT services sales: US$989mn in 2012 to US$1.1bn in 2013, +14% in US dollar terms. Forecast in US
dollar terms unchanged, with a key growth area being cloud services, which could be worth more than
US$100mn by 2017.
Risk/Reward Ratings: Indonesia's score was 42.7 out of 100.0. Indonesia remained fifth from bottom of
the Asia region in our latest RRR table, behind the Philippines and ahead of Vietnam, Sri Lanka, India
and Thailand.

Key Trends & Developments
- An active approach by the government to encourage IT development, led by the National ICT
Council, should stimulate spending through a series of infrastructure and education
initiatives. The Indonesian government's Master Plan for Acceleration and Expansion for
Indonesia Economic Development (MPEEI) states that connectivity between the islands of the
country is a priority area. major government infrastructure and ICT initiatives, particularly the
Palapa Ring Project, have been rolled out to create the infrastructure to support IT market
growth.
- With ICT penetration of only 20% and development restricted to richer areas such as Java, the
market has much growth potential. However, Indonesia's uneven development and digital divide
are major barriers to faster growth within this potentially huge IT market.
- According to government data, there are 30-35mn Indonesian companies that still do not use ITbased
solutions, representing a huge potential market. Modernisation is driving spending on
applications such as CRM, ERP and financial management in key sectors such as financial
services, telecoms, utilities, government, retail and manufacturing.
Executive Summary 5
SWOT Analysis 7
Indonesia IT SWOT . 7
Indonesia Telecoms SWOT . 8
Indonesia Political SWOT . 9
Indonesia Economic SWOT 10
Indonesia Business Environment SWOT . 11
Asia Pacific IT Risk/Reward Ratings 12
Table: Asia Pacific IT Risk/Reward Ratings, Q113 15
Asia Pacific IT Markets Overview . 16
IT Penetration 16
IT Growth and Drivers. 18
Sectors And Verticals . 20
Market Overview 24
Government Authority 24
Table: Key Ministers And Departments 24
Table: Bandung High-Tech Valley SWOT 25
Hardware . 26
Software . 29
Services 31
Special Focus: Banks . 32
Industry Developments. 33
Industry Forecast 37
Table: Indonesia IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2010-2017 39
Industry Forecast Internet . 40
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2009-2016 . 40
Competitive Landscape 42
Hardware . 42
Software . 44
IT Services . 46
Internet Competitive Landscape. 47
Macroeconomic Forecast 48
Table: Indonesia - Economic Activity, 2011-2016 50
Company Profiles 51
IBM . 51
Oracle Corp 56
Table: Oracle: Selected Acquisitions 60
Sigma (telkomsigma). 61
Hewlett-Packard . 63
Country Snapshot . 69
Table: Indonesia's Population By Age Group, 1990-2020 ('000) . 70
Table: Indonesia's Population By Age Group, 1990-2020 (% of total) 71
Table: Indonesia's Key Population Ratios, 1990-2020 . 72
Table: Indonesia's Rural And Urban Population, 1990-2020 72
BMI Methodology 73
How We Generate Our Industry Forecasts . 73
IT Industry 73
IT Ratings - Methodology . 74
Table: IT Business Environment Indicators 75
Weighting 76
Table: Weighting Of Components . 76
Sources . 76
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