This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Indonesia from January to June 2018 (1H18). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented services, managed services, and support services) as well as the key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of global and local IT services providers in the market.
The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.
Indonesia's Statistics Agency, Badan Pusat Statistik (BPS), announced that Indonesia's gross domestic product (GDP) expanded by 5.1% year over year (YoY) during the first quarter of 2018, which was slightly lower than the government's forecast of 5.4%. In the second quarter of 2018, Indonesia's GDP grew by 5.3% YoY, driven by healthy expenditure in the information and communication technology (ICT) sector. The country also witnessed strong foreign direct investments and exports, which in turn have positively impacted IT spending across sectors.
Uncertainty surrounding the global economy is expected to affect Indonesia's economic performance as well as exchange rate and trade balance, this year. The country's central bank, Bank Indonesia, has been proactive in defending its currency against depreciation by raising its interest rate four times since May, and has continued to tap into its foreign cash reserves to support the rupiah. This has alleviated the anxiety of corporations concerning the weakening of the rupiah, which can be seen from the continued increase in expenditure in both formal and informal sectors.
The government's National eCommerce Strategic Roadmap and "Making Indonesia 4.0" plan aims to prepare the nation for the Industry 4.0 trend and create an Indonesian economy driven by technology. Some of the key highlights of the Strategic Roadmap include tax administration reform for SMEs, cybersecurity enhancement, and upgrades to logistics and ICT Infrastructure. For the "Making Indonesia 4.0" roadmap, the focus is on the development of an education curriculum that will support Industry 4.0 initiatives, the provision of fiscal incentives for technology investments, and building nationwide digital infrastructure.
Industry 4.0 will be the key driver of IT spending for the manufacturing sector in Indonesia. The Indonesian government is providing fiscal incentives to encourage Indonesia's manufacturers to undergo digital transformation (DX), which will lead to the improvement of the nation's productivity. IDC observes that most multinational manufacturing companies prefer to engage global technology service providers to support their DX initiatives, rather than leveraging on the expertise of local service providers. Thus, there will be opportunities for global service providers to capitalize and win contracts in the manufacturing sector.
Telkomsigma, PT Anabatic Technologies Tbk, Accenture plc, Hewlett Packard Enterprise, Dell Inc., PT Astra Graphia Tbk, DXC Technology Co., IBM, PT Sisindokom Lintasbuana, Cisco Systems, Inc., PT Aplikanusa Lintasarta, PT Multipolar Tbk, Mitra Integrasi Informatika
Application development services, Application management, Hosted application management, Hosting infrastructure services, IT consulting services, IT education and training, IT maintenance and support, Network and desktop outsourcing services, Systems integration services