2012-10-26 05:27:32 - New Computer Technology market report from Business Monitor International: "Indonesia Information Technology Report Q4 2012"

BMI View: Indonesian IT spending is expected to reach US$5.9bn in 2012, up 11%, slightly lower than previously 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 2012, buoyant private consumption should support demand for IT products and services and PC penetration remains at around 6%, 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$3.8bn in 2011 to US$4.2bn in 2012, +10.0% in US dollar terms. Forecast in US dollar terms unchanged, with growing affordability and credit

availability driving sales in the consumer segment, and a trend towards slimline, lightweight notebooks.


Full Report Details at
- www.fastmr.com/prod/464500_indonesia_information_technology_repo ..


Software sales: US$594mn in 2011 to US$681mn in 2012, +15% in US dollar terms. Forecast in US dollar terms unchanged and progress will depend on the success in bringing down illegal software use. IT services sales: US$873mn in 2011 to US$1.0bn in 2012, +12.0% in US dollar terms. Forecast in US dollar terms unchanged, with a key growth area being cloud services, which could be worth around US$100mn by 2016.

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

* 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.
* 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. Around 30-35mn Indonesian companies are estimated to lack any IT-based solutions and enterprise resource planning (ERP) and other e-business applications will find increasing popularity in the small and medium-sized enterprise (SME) market.

Spending in some key IT verticals, such as financial services and banking, should continue to be significant in 2012 as Bank Indonesia turns dovish. Banking IT spending is expected to grow by a doubledigit factor in 2012. Government IT spending is also expected to increase and could have accounted for as much as 25% of the IT market in 2011, with reports that the government was encouraging state companies to use more IT services.

Report Table of Contents:

Executive Summary
SWOT Analysis
- Indonesia IT Sector SWOT
- Indonesia Telecoms Industry SWOT
- Indonesia Political SWOT
- Indonesia Economic SWOT
- Indonesia Business Environment SWOT
Asia Pacific IT Risk/Reward Ratings
- Table: Asia Risk/Reward Ratings, Q412
IT Markets Overview
- IT Penetration
- IT Growth and Drivers
Market Overview
- Table: Key Ministers And Departments
- Table: Bandung High-Tech Valley SWOT
- Hardware
- Software
- Services
- Special Focus: Banks
- Industry Developments
Industry Forecast
- Table: Indonesia IT Sector - Historical Data & Forecasts , 2009-2016
Industry Forecast Internet
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
Competitive Landscape
- Hardware
- Software
- IT Services
- Internet Competitive Landscape
Macroeconomic Forecast
- Table: Indonesia - Economic Activity, 2011-2016
Company Profiles
- IBM
- Hewlett-Packard
- Oracle Corp
- Sigma (telkomsigma)
Indonesia Demographic Outlook
- Table: Indonesia's Population By Age Group, 1990-2020 ('000)
- Table: Indonesia's Population By Age Group, 1990-2020 (% of total)
- Table: Indonesia's Key Population Ratios, 1990-2020
- Table: Indonesia's Rural And Urban Population, 1990-2020
BMI Methodology
- How We Generate Our Industry Forecasts
- Transport Industry
- Sources

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