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ICT expenditure among Indonesian enterprises is on the rise

15th September 2014

ICT investments in Indonesia are set to increase in 2014, with software expenditure increasing in importance, Kable research finds.


76% of Indonesian enterprises are planning to increase their ICT budgets in 2014, according to a recent survey from Kable. This is an increase of 14% compared to 2013, and highlights the fact that Indonesian enterprises are increasing their ICT investments to enhance their productivity and gain competitive advantage. Kable’s research finds that, although investments in hardware will remain on top of enterprises’ priority lists, software investments are expected to increase from 19% of total ICT budgets in 2013 to reach 22% in 2014. Moreover, enterprises in Indonesia are keen to commission third-party IT services providers for new application development & integration services, as well as using their specialist IT consultants.  

The survey reveals that content management solutions have a high penetration rate among Indonesian enterprises. Meanwhile, investments in mobility, communications & collaboration, and business intelligence (BI) solutions are also gaining popularity in the market due to their advantages relating to increased productivity, cost reduction, and flexibility. Furthermore, with at least 85% of respondents planning to invest in these domains through to the end of 2015, ICT providers offering these technologies in the Indonesian market are expected to be in a better position to increase their revenues.

Enterprises prefer financially stable vendors

“The adoption of advanced technologies such as business intelligence is gaining traction among Indonesian enterprises, fuelled by the growing need to manage and analyse rising volumes of enterprise data,” comments Renjitha Balkrishan, a Kable analyst. Meanwhile, the survey finds that technology vendors exhibiting decent financial stability and leading-edge technology are preferred by Indonesian enterprises. Kable therefore predicts that vendors who can demonstrate their financial strength and offer the latest technologies within their product ranges will have an edge over their competitors.

Editor’s notes

Kable’s survey of the Indonesian ICT market covered enterprises across 12 industry sectors. It was conducted in Q4 2013 via an online methodology, with respondents all having ICT decision making responsibility (typically CIOs and IT Managers).

Analysis of the survey data is contained in Kable’s ICT investment trends in Indonesia report. This report and others are available by subscribing to Kable’s Global ICT Intelligence Service at http://intelligence.kable.co.uk/

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Kable finds that, although investments in hardware will remain on top of enterprises’ priority lists, software investments are expected to increase from 19% of total ICT budgets in 2013 to reach 22% in 2014.

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