Metrodata Electronics, an Indonesian information technology company, is looking abroad for help as it tries to expand its portfolio.
Through its subsidiary, Metrodata e-Bisnis, the telecommunications and consumer electronics distributor announced a joint venture with Taiwan-based Synnex Technology International Corporation on Wednesday.
“With this joint venture, we can expand our market and add product divisions that we can market in Indonesia,” said Susanto Djaja, president director of Metrodata Electronics.
Susanto said the “marriage” would help Metrodata stay ahead of the game in the competitive IT sector in Indonesia. He said Metrodata, the largest IT distributor in Indonesia, has a value of about $250 million.
Synnex, meanwhile, will gain access to the largest market in Southeast Asia.
“The Indonesian market has great potential, and we have been eyeing this market for years,” said David Tu, general manager for group business development of Synnex Group. “With Metrodata’s local expertise, we believe that we will bring value to vendors and dealers.”
Tu said the joint venture would establish the two companies as “world-class IT distributors for the Indonesian market.”
Metrodata and Synnex each hold a 50 percent stake in the venture, which has total capital of Rp 300 billion ($34 million). Tu said Synnex, the world’s third-largest IT distributor after Ingram Micro and Tech Data, is valued at $22 billion.
Agus Honggo Widodo, president director of Metrodata e-Bisnis, said the IT industry has grown significantly in the last three years. MEB, which contributes more than 50 percent of Metrodata Electronics’ business, earned Rp 2.3 trillion in sales last year.
“Since we have reached trillions in sales, we need more support in order to grow even larger,” Agus said, adding that the support was not just financial but also in product diversification and management.
Tu told the Jakarta Globe that Synnex is already prepared to distribute telecommunication products in Indonesia.
“We will focus on smartphones that are equipped with IT solutions in Indonesia,” said Tu, who added that the Taiwanese company would automatically bring tablets along with smartphone distribution.
“Smartphones will come with tablets, because all the phone companies are now developing tablets,” he said.