Indonesia: New business opportunities in a new democracy

Michael J. Webdell, Jakarta

Indonesia, one of the newest democracies in the political world, is currently in the midst of its first-ever direct presidential election. It is an event as exciting as the world has ever seen because relatively few nations have made such a swift and peaceful transition. In just five year's time, Indonesia has demonstrated that it is adaptable and eager to participate as a leader of the modern world.

Former United States' President Jimmy Carter in the July 15, 2004 edition of the International Herald Tribune wrote, "A milestone for us, this election also was a significant step forward for democracy worldwide. The people of Indonesia are providing a dramatic example of peaceful political change, and firmly negating the claim that Muslim societies are anti- democratic."

While the elections demonstrate a positive political future, today's Indonesia also presents unlimited opportunities for a positive economic future. But to see where Indonesia can go, it's important to realize the significance the region has played in the development of modern business.

It was the opportunity in the Malay Archipelago that inspired the creation of the first two publicly traded businesses in the world: The Dutch East Indies Company and the British East India Company. The shareholder framework set up by these two entities established devices that are still working in modern exchange houses today.

Because of Indonesia's importance, the Dutch even made Batavia (Jakarta) their regional headquarters. Of course, no one is celebrating in totality the colonial tactics implemented during this time, as they caused great hardship to many people. Instead, what one should gain from this history is the significance Indonesia held then and still holds today for our global economy.

However, as unlimited the opportunities existing in Indonesia, many still only consider the country's low-tech and raw material advantages as its total worth. When in actuality, today's Indonesia offers more robust resources than ever before. Things like computer programming, media and web production, and service businesses such as management consulting all hold great potential for export. And marketing branded Indonesian consumer products abroad can certainly benefit both foreign and domestic companies.

With that said, there are visionary organizations in Indonesia currently taking on the challenge, such as SemutApi Colony, a brand marketing communication company in Jakarta.

For the past few years SemutApi's founder, Danny Wirianto, has put his skills and Indonesian staff to work for U.S. companies such as the snack icon, Beer Nuts. For Beer Nuts, SemutApi not only refreshed the company's brand identity, but also created an entire web and e-commerce solution meeting modern business needs.

"We leverage the global network we've built providing marketing communication solutions ranging from print to e- commerce while utilizing a lot of Indonesian talent. This proves that Indonesia is a viable competitor for outsourcing of programming, business management services, or design," said Wirianto.

While SemutApi is definitely pioneering a new phase of business in Indonesia, they should not be looked at as an anomaly. For many other similar opportunities exist in Indonesia if only someone would organize them. As mentioned previously, and based on the following observations, computer programming is one of those opportunities.

Primarily, as computers are becoming more common place, we are seeing a whole new generation of computer suave Indonesians that are comfortable with technology and understand its applications.

Next, joint offshore programs between Indonesian universities and foreign institutions, such as Bina Nusantara's association with Australia's Curtin and RMIT in information technology and information systems, are training students domestically in modern technologies previously only available abroad. This creates a resource for homegrown talent able to compete against counterparts in countries such as India, China, or even the United States.

But the most urging indicator for developing computer programming outsourcing in Indonesia is the interest from foreign companies. Attending many business events in the United States, I have the opportunity to speak with management from organizations large and small. And universally, when the question is posed, "have you thought about Indonesia for outsourcing programming", the response is, "no, but if there is an opportunity, I'd like to hear about it." It's time to cultivate Indonesian talent, organize it, and market it effectively to the world.

Looking through the second half of 2004, there are many political and economic changes on the horizon for Indonesia. But as these changes take place, one can't help but be inspired by the country's rich history, its recent progress, and the grand potential for its future.

This is the burgeoning of a market and opportunity that doesn't come around very often. Those entrepreneurs with vision and insight will do well to start taking advantage of what is around them and developing these new business opportunities in this new democracy of Indonesia.

The writer is a marketing and management consultant. He can be contacted at mjwebdell@aol.com