4 March 2015
Indonesia’s IT industry gears up for AEC 2015
With the implementation of the ASEAN Economic Community (AEC) due this year, competition in the IT industry is set to intensify. Will Indonesia’s IT sector thrive under these conditions? Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting, shared his insights in Kompas News – a leading newspaper in Indonesia.
Personal computer (PC) shipments, tablet computers, ultra-mobile and mobile phones are expected to reach global sales of 2.5 billion units in 2015 – a rise of 3.9% in comparison to 2014. While PCs are still growing in developed markets such as the US, weak growth of PC’s in developing markets is attributed to strong demand for smartphones and table computers.
Nonetheless, the IT industry in Indonesia will continue to charge ahead. Bahar highlighted that the highest sales in Indonesia are seen in tablet computers and smart phones.
Within ASEAN, Indonesia offers the greatest market opportunities for consumer IT. The nation is expected to reach a Gross Domestic Product (GDP) of USD3.1 trillion by 2025, with the largest population in Southeast Asia.
At the same time, Bahar cautioned that the ASEAN free market requires adequate IT support to facilitate collaboration and integration between various countries in the region. Hence, the demand for competent IT workers is set to rise and their availability will most likely pose a challenge.
Nevertheless, the development of 4G LTE networks will take off. High-speed internet connectivity will raise labour productivity, which will help address this issue. He noted that telecommunication service providers continue to aggressively expand their network across Indonesian cities.
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Spire Research and Consulting
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Spire Research and Consulting is the leading research consultancy in global emerging markets. Spire's competitive advantage lies in its ability to deliver actionable intelligence on the external business environment in support of its clients’ strategic decision-making in marketing and business development. Spire's clients include 50 Global Fortune 1000 companies and government agencies in 15 countries. For more information, please visit www.spireresearch.com.