Technology to Drive Indonesia's Growing Economy in 2013

With a record growth of 22% foreign direct investment (FDI) into the Indonesian economy in the third quarter (Q3) of 2012, IDC estimates that the inadvertent spill-over impact on ICT is set to continue into 2013. IT spending for the country is expected to achieve US$15 billion by the end of 2012, driven significantly by the growth of spending on client devices, and IT services.


A largely consumer driven market, IDC expects enterprise IT spending across key verticals such as manufacturing and retail to increase over the next year, as key requirements for integration, communications and mobility continue to cause CIOs to re-think current ICT policies and strategies.


"As CIOs begin thinking on how ICT can be a key transformer within their enterprise to achieve business goals, we do expect a heightened interest across areas of data center services, cloud, and mobility to take center stage in 2013", says Sudev Bangah, Head of IDC Indonesia Operations.


IDC's 2012 Continuum Survey of Indonesian enterprises revealed that more than 53% of those surveyed are looking at utilizing IT more aggressively moving into the future, with more than 30% of them looking at reducing their overall IT infrastructure expenditure.


While hardware spending is expected to continue, however, the beginnings of a shift in mindset towards outsourced services is at a crucial exploratory point.


In essence, IDC expects IT spending in the country to grow in tandem with the growth of GDP, with Indonesia continuing to lead all ASEAN countries.


IDC expects the interest and uptake of data center and managed services to dramatically occur, with cloud leading the way via more understanding on the ROI of the investment.


IDC also expects a heightened increase of investments in tech start-ups to occur, where equity investors are going to begin looking for the “next big thing.”


With the launch of Windows 8, and the continued proliferation of mobile devices, the line between enterprise and consumer devices are blurred, causing more discussions on the BYOD trend to occur within enterprises.


As business still is centered around West Indonesia, IDC expects vendors to heighten their quest into identifying areas to capitalize upon in the next 5 years.

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