Enterprise Services: The Next Big Wave
    Category: Column By : Ajay Sunder Read : 1218 Date : Wednesday, December 03, 2014 - 22:29:44

    The launch of the Indonesia broadband plan (IBP) heralds an important milestone in Indonesia’s ICT landscape. The IBP’s major agenda is to improve Internet speeds and coverage. The IBP also details five priority areas for the government: e-government; e-education; e-health; e-logistics; and e-procurement. The new government also has announced separate efforts on improving the physical infrastructure in terms of both optical and submarine cables that are the key drivers for enabling  ICT services.

    Indonesia is also witnessing a sharp growth in new small and midsized enterprises. With more than five million SMEs in Indonesia, there is a huge potential for IT services.


    To improve security and data privacy, the government passed regulation No. 82 of 2012, which sets out significant requirements covering electronic transactions, electronic signatures, domain names, and other related issues. This law applies broadly to individuals, government bodies and companies which provide or operate devices and electronic procedures used for preparing, processing, analyzing, storing, displaying and disseminating electronic data.

    In addition, Electronic System Providers (ESPs) are also required to ensure the protection of personal data. Personal data is defined very broadly as any information about individuals that is kept, stored and protected as confidential information. This government regulation would spur the demand for IT services within Indonesia, as all electronic data has to reside within the country in the next five years. While Indonesia was at the back foot for a long time in regards to data residency and privacy considerations, Indonesia had to take the bold and controversial step to protect the data of its citizens.

    This regulation is already impacting a few major sectors, such as shared services, outsourcing, data centers and cloud services. Many large Indonesian enterprises are now actively seeking shared services so that they can focus on the core functions. Smaller enterprises are increasingly looking at outsourcing their IT services so that the outsourcer can handle their data protection. This trend is also fuelling the demand for data center services and cloud services. As data demands increase for many Indonesian enterprises, they are looking at hosting their servers in third party data center providers. This move also creates many more investment opportunities for international firms and employment opportunities. 


    With the government leading the way for e-services and physical infrastructure, IT service companies must be at the core for government e-services. The Indonesian government is mindful of the skill gap of the local ICT enterprises and encouraging them to tie up with international players to generate a win-win situation. The mandate is to ensure local companies are not left out while gaining experience from international vendors and service providers. Managed services, outsourcing, shared services and data center services allow companies to focus on their core businesses, save money and ensure that they are ready for the next growth wave.