2013-12-04 04:41:16 - Recently published research from Business Monitor International, "Indonesia Information Technology Report Q1 2014", is now available at Fast Market Research
The Indonesian IT market is forecast to be one of the outperforming markets globally over the medium term, on the back of strong economic growth, a low PC penetration rate and an emerging middle class. Despite a downwards revision to BMI's forecasts during Q413, following a slowdown in PC sales in Q113 and uncertainties about Indonesia's economic outlook, we believe the market holds promise going into 2014 and beyond. The rupiah has depreciated in 2013, having a constraining effect on household spending, but BMI believes such effects will not be long lasting. In the immediate future, IT spending is forecast to increase to IDR63.0trn in 2013, up from IDR54.6bn in 2012, with the economy predicted to grow around 6% in
2013. The retail market will be a major driver of growth, with PC penetration estimated at below 10% in 2012, meaning there is significant growth potential from first-time buyers and upgrades/ personal devices.
Full Report Details at
- www.fastmr.com/prod/723466_indonesia_information_technology_repo ..
Headline Expenditure Projections
Computer Hardware Sales: IDR44.7trn in 2013 to IDR63.7trn in 2017, at a compound annual growth rate (CAGR) of 10.2% in local currency terms. Sales were down in Q113, but rising incomes and the growing affordability of devices, combined with credit availability, will increase sales in the consumer segment.
Software sales: IDR7.6trn in 2013 to IDR12.7trn in 2017, at a CAGR of 14.9% in local currency terms. Windows 8 sales will boost spending in 2013, as the government launches a new roadshow to bring down illegal software use.
IT Services Sales: IDR10.7trn in 2013 to IDR16.7trn in 2017, at a CAGR of 12.9% in local currency terms. Our forecast has been downwardly revised, but a key growth area is cloud services, which could be worth more than IDR11.8trn by 2017.
Key Trends & Developments
In October 2013, it was reported that Indonesia is responsible for 38% of the world's malicious internet traffic, surpassing China as the leading root of online attacks. This has grown from only 0.7% of recorded attacks 12 months previously, according to the US-based Akamai Technologies. The reasons behind the growth are under debate, but the implications of a dramatic increase in online attacks have worried officials. Cyber security is notoriously weak in Indonesia. The second-highest cause of the 1.2mn daily attacks recorded by the government is attempts at data theft. Network-heavy industries, such as oil and gas, are most susceptible to data phishing attempts.
Although the consumer story in Indonesia means that the retail hardware market is set to remain the dominant theme in the Indonesian IT market, the cheaper rupiah - the currency was one of the weakest regional performers in 2013 - has had a constraining effect on household spending. However, there are also opportunities for vendors to generate sales to the public and enterprise sectors. 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. Government IT spending was up in Q113, with a boost from projects previously delayed from Q412. Meanwhile, according to government data, IT penetration in enterprises is low, particularly in the SME segment, 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.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Indonesia IT Industry - Historical Data And Forecasts (IDRmn)
- Table: Internet - Historical Data And Forecasts, 2010-2017
- Economic Analysis
- BI, Government Measures Still Insufficient
- BI To Remain Vigilant
- Stimulus Unlikely To Prevent Growth Slowdown
- Table: Indonesia - Economic Activity
Industry Risk Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings - Q1 2014
- IT Services
Industry Trends And Developments
- Table: Key Ministers And Departments
- International Companies
- Table: Lenovo Indonesia
- Table: Intel Indonesia Corporation
- Table: Microsoft Indonesia PT
- Table: IBM Indonesia
- Local Companies
- Table: Performance PT Multipolar Technology Tbk (MLPT)
- Table: Walden Global Services (WGS)
- Table: Aprisma Indonesia
- Table: ALTiUS ERP
- 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
- Industry Forecast Methodology
- Risk Reward Rating Methodology
- Table: It Risk Reward Rating Indicators
- Table: Weighting Of Components
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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