Heaptalk, Jakarta — The strategic investment of behemoth technology companies, such as Nvidia, Apple, and Microsoft, in the archipelago has urged local players to develop multiple business strategies to enhance its competitiveness.
As is known, Nvidia recently intended to channel a US$200 million investment in Indonesia by collaborating with Indosat Ooredoo to construct an artificial intelligence (AI) center, AI Nation, in Solo Technopark, Surakarta.
On the other hand, Apple’s CEO, Tim Cook, met Indonesia’s President, Joko ‘Jokowi’ Widodo, to expand investment opportunities after injecting US$98.5 million in funds in 2018 to establish four Apple Developer Academies in the archipelago. The newest one, United States-based Microsoft, also announced a US$1.7 billion capital investment over the next four years to advance cloud and AI infrastructure in Indonesia.
Foreign investment in Indonesia: Opportunity or Barrier?
As one of the local IT players, the Chief Operating Officer (COO) of desktopIP, Hermi Putra, considered the investment allows them to easily cooperate with the country, particularly Indonesia, and this measure power them to reaches tremendous market size.
“Our market is so big, and we have a huge population. That is why these leading tech corporations penetrate the archipelago,” Hermi commented on the leading tech companies’ investment.
However, their investment moves also raises new challenges for local companies to compete perceiving their broad business network worldwide and capability of influencing society to use their products habitually. Instead of competing with them, he stated that the company should benefit this condition by amplifying strategic collaboration, business network utilization, and product integration. For instance, Nvidia’s GPU integration to develop the local GPU cloud.
“It is more about how we embrace them. In fact, we cannot get away from Apple products, even Google, and we use Google every day. Likewise, we know that Nvidia is the most prominent GPU and chip manufacturer, particularly in AI development. So, these are the strength of foreign companies in shaping us habitually. ” Hermi added.
On the other hand, the COO of desktopIP also conveyed that business expansion into international markets would be another option for local players growing bigger and compensating for the power of foreign companies entering the archipelago.
“In order to compete with them, we must be present outside because maybe this has become how we have been doing business,” Hermi Putra conveyed.
Are Indonesian human resources handy to compete?
Hermi also highlighted the readiness of the archipelago’s workforces as another critical aspect to adapt to these global players as quick as possible. In an exclusive interview with Heaptalk, Hermi expressed his optimism about the capability of local talents.
“We already have smart local talent who wants to contribute to the country, specifically since many diasporas have returned to Indonesia and established their own companies here. Thus, as a network, they are much more mature than ten years ago,” he explained.
A professional recruitment company Robert Walters Indonesia (RWI) reported Indonesian diasporas’ desire to return to their homeland was projected to increase last year. Based on its latest report, around 60% of overseas Indonesians affirmed they intend to return to the archipelago in the next five years.
“There is always a way to prepare human resources. If we say we are unprepared, we will never be ready for technological transformation. Consequently, we must adjust and set up human resources to meet market needs today.” The COO of desktopIP, Hermi Putra, concluded.
ADS
