Analyst downplays dot-com bubble burst<\/p>\n
JAKARTA (JP): As the bubble bursts on Internet companies in
\nmany parts of the world, Indonesia has little to fear due to
\nlower public exposure and fewer players in the market, an expert
\nsaid.<\/p>\n
\"Public exposure to dot-com companies in Indonesia is bigger
\non paper than in reality, so the bubble burst here, if any, will
\nbe small,\" Andersen Consulting Indonesia manager Heru Prasetyo
\nsaid on Wednesday.<\/p>\n
\"There aren't many dot-com companies here that have gone
\npublic, which means there won't be many public shareholders
\nsuffering losses if a bubble burst occurs,\" Heru said during a
\nbreak in a seminar on the future of Internet companies.<\/p>\n
Heru is also chairman of the Indonesia Internet Business
\nCommunity, which was launched on Wednesday.<\/p>\n
Indonesia has a good chance to survive the Internet slump
\nbeing experienced by other countries if local Internet companies
\nare ready to make adjustments and learn from the failure of
\nothers, Heru said.<\/p>\n
Internet businesses began making inroads in Indonesia last
\nyear and there are currently more than 150 Internet companies in
\nthe country, according to Nia Sari Nastiti of Andersen
\nConsulting.<\/p>\n
At least five dot-coms were launched every week between
\nFebruary and May this year, but the growth has since slowed
\nconsiderably to about one or two a week, she said.<\/p>\n
The Internet industry rode a wave of success for many years,
\nbefore a sharp plunge in the technology-heavy Nasdaq in April,
\ncausing losses of about US$2.1 trillion.<\/p>\n
Many Internet companies, including some in Asia, were forced
\nto delay their initial public offerings (IPOs) following the
\nplunge. This hit the industry particularly hard, because IPOs
\nwere the only source of income for many dot-coms.<\/p>\n
The bubble burst opened many people's eyes to the volatility
\nof the business, Heru said. \"Investors are now more wary about
\nputting their money into these businesses.\"<\/p>\n
\"This, however, does not mean the end for dot-coms. The Nasdaq
\nmay collapse, but because the ball has already started rolling
\n(for the Internet industry), customers have become more
\ndemanding,\" Heru said.<\/p>\n
To be successful, Heru said, an Internet company must merge
\nold and new-economy styles of management.<\/p>\n
An Internet company must follow the principles of the old
\neconomy, including having sources of revenue other than the stock
\nexchange, Heru said. \"Revenue matters, business models matter.
\nAbove all, profits really matter.\" (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/analyst-downplays-dot-com-bubble-burst-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}