Sign up | Log in



Home  >>   Daily News  >>   Singapore  >>Infrastructure  >> Growth and infrastructure to boost IT spending
NEW UPDATES Asean Affairs    6 February  2015  

Growth and infrastructure to boost IT spending

Local companies’ spending on IT is predicted to grow almost threefold in 2019 from spending in 2013 thanks to the growing domestic economy and better telecommunications infrastructure, according to a report.

“We predict that enterprises’ IT spending will reach US$3.8 billion in 2019,” said Ajay Sunder, vice president for ICT practice in the Asia Pacific region at research firm Frost & Sullivan.

Last year, IT spending among domestic companies stood at around $1.6 billion, he added. The increase in IT spending would be driven by better economic conditions and the growing number of people who connect to each other digitally, Ajay said.

Indonesia will have around 1.7 billion connected devices by 2020 with over 470 million mobile subscribers and over 200 million active Internet users, according to the research firm.

Indonesian Telematics Society (Mastel) chairman Setyanto Santosa lauded the government’s $22-billion drive for a five-year broadband project as it would help improve ICT infrastructure in the country.

With higher fixed-broadband penetration, as planned in the project road map, the country would have faster Internet — which would encourage more investment in ICT, he added.

Frost & Sullivan has predicted that cloud and data center services will be the growth engine for the enterprises’ IT spending with a growth rate of 605 percent and 317 percent from 2013, respectively.

The growing spending in cloud services was mainly due to huge adoption by small and medium enterprises, Ajay said.

Google has said previously that small and medium businesses, which account for 90 percent of its market in Indonesia, are yet to fully take advantage of the potential of online advertising.

Indonesia’s Internet-based startups would also significantly grow in the near future as there was likely continuing investment for e-commerce players in the country’s growing market, said Frost & Sullivan associate director for ICT consulting in the Asia Pacific, Spike Choo.

Last year alone, local e-commerce giant Tokopedia secured $100 million in funding from Japanese SoftBank Corp. and US-based venture capital Sequoia Capital.

In addition, Frost & Sullivan has estimated that banking, financial services and insurances (BFSI) will remain the largest IT spender, with total spending of $1.04 billion or around 27 percent of total estimated spending.

“Meanwhile, Indonesia’s enterprises will move their data back to Asia […], in which BFSI companies will complete [the action] sometime between next year and 2017,” Ajay said.

“[Banks] are also looking for a second location — which is outside Jakarta — and many of them said that they own private data centers,” he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           February  6, , 2015 Subsribe Now !
• Singapore strengthens economic, banking links with Myanmar Subcribe: Asean Affairs Global Magazine
• Growth and infrastructure to boost IT spending 
• Dr Mahathir: Price increase has nothing to do with race
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Workplace fatalities dip to record low in 2014
• Palm oil exports up, while profits dip
Asean Analysis                    February 6, 2015
• Asean Analysis February 6, 2015
Myanmar’s Military Still a Wild Card as Elections Loom
Advertise Your Brand

Asean Stock Watch   February 5,  2015
• Asean Stock Watch-February 5 , 2015
The Biweekly Update
• The Biweekly Update February 6, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand