Press Release

Indonesian IT-industry players penetrating global markets

Would “IT Outsourcing” be mentioned, then India undoubtedly would come to one’s mind, and it is nothing without reason for India dominates 55% of the global IT Outsourcing market. How is it about Indonesia?

Gartner report (2012) showed that Indonesia was still on its 5th position in the Asia Pacific region after India, China, Malaysia, and the Philippines as the destination country for IT offshoring services dan Bussiness Processes Sourcing (BPO).

The fact that India, Malaysia, and the Phillipines are on the top position, makes sense to many people that it is due to their language skill as English is the second spoken language in these countries.

Considering to this fact, six Indonesian IT companies have joined efforts and are committed to push up Indonesia’s position as top IT Oursourcing destination country.  PT Abyor International, PT Masvent Technosoft, PT Gamatechno Indonesia, PT Bataviasoft Indonesia, PT Jogja Global Technology, and Bandung Techno Park, who participated at the world’s biggest IT event, CeBIT 2013 (Hanover, Germany, March 5-9), have agreed to establish a new IT association, the Indonesian Global IT (Indoglobit) as the initial initiative to promote Indonesian IT capability to the global market.  Fully supported by the Indonesian Embassy for Belgium, Luxembourg and European Union and the Ministry of Industry, Indoglobit is motivated to bring the Indonesian IT into the global competition. Indoglobit has the confidence in the Indonesian technological advantages when compared to the existing giants in the IT Outsourcing market, but it admits that the promotion and bravery of the Indonesian IT companies in the global competition are still lacking.

It becomes the foundation for Indoglobit to join effort with the Bandung Techno Park (BTP),  supported by the Ministry of Industry and the Indonesian Embassy in Brussels to hold the IT Gathering titled “IT Offshoring: A Challenge for Indonesia,” at the Bandung Techno Park (July 1, 2013), inaugurated by the Indonesian Ambassador, Arif Havas Oegroseno. The event is an eye opener for the Indonesian IT players that there is wide open opportunity in the IT Outsourcing market to be explored jointly. The market of more than USD 200 billion is not to miss, moreover, the growing games industry which now exceeding USD 80 billions.

The Indonesian Ambassador, is confident  that despite the downturn in its economy, the European IT market still offers significant opportunities.  This is due to its ageing population and the difficult immigration process for employment in Europe, that have created around 400.000 IT vacancies, which consequently causing the increasing IT offshoring trend to the third countries. Further to that it is caused by the increasing IT human resouces cost in India.  On the other hand this  becomes the challenge as well as opportunity for the Indonesian IT industry to be more active internationally.  This forces Indonesia to create new commodity branding, not only as tourism destination or a country rich with abundant natural resources but as well its technological inventions which will boost more self-confidence at the international level.

“The slowdown of the global economy offers the right momentum for the creative digital industry to play an active role in the establishment of entrepreneurship’, said Mustapa Wangsaatmadja, the Chairman of the Indonesian ICT Society (MIKTI), Bandung Chapter. In this regards, MIKTI has its mission to nurture the digital creativepreneurs (technopreneur) and also to promote the condusive ecosystem for the growth of the creative ICT industry.

According to the Director of Electronic and Telematic Industry, C. Triharso, the  IT development is now driven by the IT-based society. The IT industry is among the forefront industries in Indonesia by 2025 next to the transportation industry and agroindustry. Bandung Techno Park is one of the concrete example as the center for the commonly small scale companies of the IT industry to gather, and bring the companies closer to its customers. Meanwhile IT Onno W. Poerbo, IT expert, explained the importance of  IT human resources development both in its quantity as well as its quality to anticipate the globally accelerating IT industry.

The mission of this IT Gathering is to bring the Indonesian IT capabilities to the world, and therefore the understanding of the market dynamics of the global IT Outsourcing is becoming an important factor. The event committee welcomed speakers from the Netherlands and Germany for sharing their experiences in these dynamics. Ron van Domburg shared the market characteristics of the IT Offshoring in the Netherlands. Muller Manalu and Ferizal Ramli shared their IT experiences in the German market, while Jan-Hendrik Tiedje, CeBIT Project Director, shared the CeBIT’s experience in working together with countries, such as Turky, Brazil, and Poland, which actively supporting their own respective countries to enter the global markets.

Concluding the seminar was Hari Tjahjono, the Chairman of Indoglobit, who announced support programs targeting at the national IT players in their initial steps into the global market. Indoglobit will take active role to support its members and to create more competitive companies by conducting real and tactical initiatives. Indoglobit is eager to improve Indonesia’s position as one of 10 destination countries for IT outsourcing by 2025. It is a challenging goal to accomplish. Therefore Indoglobit would cooperate with multi stakeholders to encourage the participation from the Government and IT associations around Indonesia. The target is to bring 20 companies to CeBIT 2014, and a jump to 50 companies in 2015. This targeted increase is set to reach out at the Indonesia’s goal as Partner Country with a target of at least 100 companies participating at CeBIT 2016. This important and strategic effort is required for the local IT companies to play a more significant role in the global IT outsourcing market.

Bandung, 1 July 2013

Hari Tjahjono

Chairman – Indoglobit, the Association

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