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Tech Hubs Planned in Indonesia

Image credits: www.dailyadvent.com/news

Creating an internationally recognised and sought after tech hub is central to President Joko Widodo’s vision of ushering in a fourth industrial revolution built on advanced technology and human resources in time for 2045 when the country will celebrate 100 years of independence.

Indonesia’s new capital city would be modelled on Silicon Valley, functioning as a hub for digital and tech industries as well as housing the government. It will be completed in 11 years and will focus on the manufacturing of unmanned aircraft and nano-satellites.

President Joko Widodo made the appeal to reform the country’s science and technology policy at this opportune time. The National Research and Innovation Agency (BRIN) was recently restructured as an independent state body, and the technology ministry was incorporated into the Ministry of Education, Culture, Research, and Technology. In the first phase of three years, infrastructure such as tollways, water and electricity systems and earthquake-proof buildings would be built.

In Sukabumi, West Java, the Bukit Algoritma (Algorithm Hill) megaproject embodies the same concept. An Indonesian politician from the Democratic Party of Struggle (PDI-P) is leading this project.   The ambitious initiative aspires to be a hub of research in neuroscience, nanotechnology, quantum technology, solar cell technology, and space exploration, similar to Silicon Valley located in California. The project is expected to take 11 years to complete starting this year.

If the government and private sector want to turn Bukit Algoritma into a science and technology industrial zone, they need to come up with a specific industry to cultivate, possibly by utilising the existing oil palm plantations. This could lead to a regional vision of creating renewable energy and other derivative products in order to support a zero-waste industry.

Technology developers should be placed in the hub so that innovations could be made between them, especially start-ups. Such strategic steps would encourage and hasten the development of start-ups. However, a single technology centre, even as large as Silicon Valley, will not be enough to meet markets throughout Indonesia, which is an archipelago.

Indonesia’s objective of becoming a technological centre in Southeast Asia faces numerous challenges. Besides Indonesia’s progress in each of its disruptive technologies, the country still has a long way to go. Foreign investment is constrained, there are skills shortages, and the financial system is still developing. Better IT innovation and agility, as well as product and service innovation, are other success drivers.

Nonetheless, Indonesia is poised to become one of the world’s most important digital economic powerhouses, and 5G will be essential not just in accomplishing this aim but also in unlocking digital opportunities and growth. According to an article from OpenGov Asia, the Association of Indonesian Cellular Operators (ATSI) is now working on establishing its first 5G coverage by 2023, with major cities and tourist attractions expected to be among the first to adopt the technology. ATSI plans to perform frequency auctions next year in order to set up 5G networks in 2022.

Despite Indonesians massive growth, the country is dwarfed by the neighbouring Asia and South East Asia countries. India and China have massive investments from domestic and international sources with a huge skilled employee force and significant tech head-starts. Malaysia and Singapore are far more advanced economies, well along with their digital paths. Additionally, India, Malaysia and Singapore have a language advantage as English is the widely spoken and the medium of instruction in higher learning institutions and in business.

However, digital transformers in Indonesia have already seen benefits for their efforts, particularly in areas of digital experiences and digital operations. Indonesian firms successful in their digital transformation report improved operational efficiency and most often as reasons for success. This will serve as a beacon for others.

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Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

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SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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