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This article is the first of a three-part series. You can read Part 2 and Part 3 here.
Digital transformation is essential for Indonesia’s strategy to become a tech-driven, globally competitive economy, aligning with the Digital Vision 2045 led by the Ministry of Communication and Information under the Indonesia Emas 2045 programme.
This vision aims to enhance productivity, inclusivity, and service delivery by rethinking processes, strengthening governance, and empowering citizens. The goal is to embed digital solutions throughout the economy to build a knowledge-driven society for sustainable development, with aspirations to rank as the fifth-largest economy by 2045 and achieve a 6.2% growth target.
However, Indonesia faces challenges due to legacy systems that are costly and rigid, hindering infrastructure upgrades. A Ministry report revealed that many cyber incidents in 2024 were linked to these outdated systems, with a major breach affecting over 40 agencies. Such incidents pose significant risks to national security and public trust, underscoring the urgent need for a proactive cybersecurity approach.
Investing in modern infrastructure will yield long-term benefits, enhancing productivity, cost-efficiency, and security. Transitioning to scalable technologies will improve performance across public and private sectors, enabling adaptability to future changes.
Indonesia should also explore open source solutions to address legacy challenges, as these technologies are practical and cost-effective, fostering collaboration to identify and fix security vulnerabilities.
By adopting open source, Indonesia can move beyond outdated systems and leverage innovations that promote economic and social development while strengthening cybersecurity through advanced measures like encryption and real-time threat detection.
The OpenGov Breakfast Insight on 20 September 2024 at The Westin Jakarta explored critical strategies for accelerating application modernisation. The session focused on practical methods for migrating from legacy systems to modern infrastructure, highlighting how open source technologies can reduce costs, enhance flexibility, and improve cybersecurity.
The OpenGov Breakfast Insight provided practical insights for building resilient cybersecurity practices while fostering innovation. This dual approach helps organisations adapt to the rapidly evolving digital landscape and achieve their future strategic objectives.
Mohit Sagar, the CEO and Editor-in-Chief, observes that Indonesian organisations need to phase out outdated legacy systems to boost application modernisation and drive digital transformation. Legacy systems restrict agility, scalability, and security. Challenges such as data migration, employee training, and maintenance costs must be addressed during the transition.
In Indonesia, these outdated systems particularly hinder public sector agencies, leading to increased expenses and operational inefficiencies. Organisations must prioritise modernisation to stay cutting-edge, ensuring they remain agile and responsive to market demands. Shifting away from legacy systems not only improves productivity but also strengthens security and enhances overall business performance.
In the evolving landscape of technology, Open source serves as a strong alternative to proprietary systems, offering flexibility, community-driven innovation, and cost-effectiveness. It provides transparency, adaptability, and customisation, allowing organisations to tailor solutions to their specific requirements.
Mohit cautions that “utilising open source effectively demands expertise – without skilled professionals, organisations may face vulnerabilities and system failures.”
Embracing data as a vital resource is essential for sustained success, as it powers the insights and strategies required to remain competitive and adapt to evolving market conditions. It is the driving force behind innovation, growth, and informed decision-making.
Mohit stresses that “data is the lifeblood” of modern organisations, highlighting its critical importance in the digital era. He urges businesses to understand that, just as the human body cannot function without blood, organisations cannot thrive without data.
Mohit highlights that modernisation is not simply about upgrading systems but is a strategic imperative for long-term sustainability and competitiveness in the era of digital transformation. Although high costs often lead to resistance, successful modernisation requires more than just adopting new technologies – it demands a cultural shift and a mindset centred on innovation and adaptability.
A common challenge is encouraging teams to embrace upskilling. Many resist change, feeling secure in their current roles, yet simultaneously express frustration over limited training opportunities. To thrive in this evolving landscape, organisations must close this gap by providing development programs that motivate and empower employees to step outside their comfort zones. Actively involving staff in fostering a digital mindset through training, development, and transparent communication is essential for a successful transition.
In an increasingly digital era, as organisations expand their digital presence, they face greater exposure to advanced cyber threats. Indonesia’s rising cybersecurity challenges, including high-profile data breaches, underscore the urgency for modern, secure systems. Strengthening cybersecurity during digital transformation is vital to mitigating risks and safeguarding sensitive data.
“Strategic planning is crucial,” he asserts emphatically. “You don’t just wake up one morning and say, ‘Let’s go fight the world.’ You have to be prepared.”
One of the primary benefits is improved security, as a global developer community constantly monitors and enhances these solutions, quickly addressing vulnerabilities. Organisations that strategically invest in training and planning can achieve sustainable modernisation, balancing upfront costs with long-term benefits in scalability, security, and operational efficiency.
Mohit believes that partnerships are crucial for success in a competitive landscape, both locally and globally. While Indonesia is swiftly making its mark on the international stage, success should not be confined to popular locations like Bali; the entire nation must thrive.
This spirit of innovation, adaptability, agility and collaboration is exemplified by Red Hat, which has continually transformed both government and private sector landscapes. Mohit points to IBM’s decision to acquire Red Hat during a difficult stretch of 45 consecutive quarters of losses. This acquisition revitalised IBM, leading to a significant increase in its stock price – not just because of IBM’s initiatives, but largely due to Red Hat’s impact.
“They have transformed themselves,” Mohit observes, asking, “How will you reinvent yourself? The responsibility for driving organisational growth rests firmly with its leaders – will you prioritise strategic partnerships and preparation?”
As leaders plan their future strategies, adopting open source solutions emerges as a key approach for both transformation and sustainable growth. Mohit is optimistic about the rapid pace at which open source technologies can fuel innovation. He suggests that once organisations recognise the value of open source in accelerating progress, they should reach out to vendors like Red Hat to leverage their support and expertise.
Mohit highlighted the international perspective that Red Hat offers in Indonesia, noting that their advice is informed by diverse experiences from around the world. Red Hat’s extensive expertise leverages insights from various markets and tailors them to fit local contexts. This localised approach ensures that organisations can benefit from global best practices while addressing context-specific needs.
“Red Hat brings valuable global knowledge into Indonesia and effectively contextualises it,” Mohit explains. “I encourage you to engage with them to better understand how they can assist you in your individual journey.”
Mohit also emphasised the crucial role of collaboration and community in effectively transitioning to open source technologies. He urged delegates to keep working together and sharing their insights, fostering a collective effort toward achieving a brighter future for everyone.
This article is the first of a three-part series. You can read Part 2 and Part 3 here.
