Networking business on the move<\/p>\n
JAKARTA (JP): The private networking and wiring business in
\nIndonesia is expected to be worth $250 million this year and to
\ngrow rapidly with the country's burgeoning economy.<\/p>\n
Executives of U.S. firms Lucent Technology and Digital
\nEquipments said Saturday that Indonesia's growing networking
\nmarket would attract multinational wiring and networking
\nproviders to set up manufacturing facilities here.<\/p>\n
\"Indonesia has very good potential for business expansion as
\nits market is picking up,\" said M.W. Song, a general manager at
\nSingapore's Digital Equipment Asia Pacific Pte. Ltd.<\/p>\n
They said Indonesia's participation in the Information
\nTechnology Agreement would help make the country a more
\nattractive place to make networking hardware.<\/p>\n
Lucent Technology's country business manager, Redi Subekti,
\nsaid Indonesia's participation in the agreement would pave the
\nway to modernize the country's information infrastructure.<\/p>\n
\"Information technology is a prerequisite for a developed
\neconomy. In addition, it will attract the most sophisticated
\ninformation technology products into the country. Thus, it will
\nbenefit the country's economy as a whole,\" Redi said.<\/p>\n
Redi said Lucent Technology, an AT&T subsidiary, would
\nestablish copper and fiber optic wiring production facilities in
\nIndonesia within three years.<\/p>\n
\"For the time being, we consider the market as not yet mature
\nenough, and thus we need to wait until the next two to three
\nyears,\" Redi said.<\/p>\n
He said the networking business had been growing by between 30
\npercent and 40 percent a year and to be worth over US$250 million
\nthis year, of which 45 percent would go to hardware, 35 percent
\nto software, 10 percent to wiring and 10 percent to services.<\/p>\n
Song said Digital's market share in Indonesia was still small,
\nworth just $1.5 million last year. But she expected this to
\ndouble this year.<\/p>\n
She said Digital was determined to compete with other network
\nproviders here, like Bay Networks which has already set up wide
\nlinks with banks and other financial institutions.<\/p>\n
Redi said Indonesia's wiring business was expected to be worth
\nUS$25 million this year, of which Lucent expected to get 40
\npercent.<\/p>\n
Wiring's high growth has been attributed to the increasing use
\nof local area networks by private companies, including building
\nmanagement firms.<\/p>\n
Private wiring and networking is a small part of Indonesia's
\ntotal wiring and networking business.<\/p>\n
The networking business' value in the public sector is
\nexpected to reach US$1.25 billion this year.<\/p>\n
Redi said Lucent expected to grab 20 percent of Indonesia's
\npublic network market. (rid)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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