Investing in Digital Transformation is Inevitable
Indonesia has been on a great economic run this year. The Indonesian government and Apple Inc. have finally settled the dispute, and the country’s ban on iPhone 16 sales has been lifted, ending a five-month tug-of-war that forced the US tech giant to raise its promised investment in the country to $1 billion. Additionally, Indonesian industry minister Agus Gumiwang Kartasasmita recently mentioned that Apple had settled a $10 million debt to the government for not complying with local rules between 2020 and 2023. On the other hand, Digital Realty, a leading Southeast Asian digital infrastructure platform, also announced its entry into Indonesia through a 50-50 joint venture (JV) called Digital Realty Bersama. This will be a huge boost to the country's data center landscape.
These great omens reflect on Indonesia’s economy, which is set for steady growth, with GDP projected to rise by 5.0 percent this year (same as last year). As the country is emerging as a leading force in ASEAN’s digital economy, the corporate realm must focus keenly on digital transformation. The signs from yesteryear are good, as Indonesian companies invested significantly in digital transformation in 2024. More than 30 percent of businesses and institutions in Indonesia aimed to increase their investment spending on digital technologies by over 20 percent in 2024, slightly higher than other ASEAN countries. In this special yearly issue of CEO Insights, we feature some of the reputed financial leaders setting the right benchmarks.
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