Lack of clear strategy hampers IT development

Alexander Rusli, Lecturer, Faculty of Computer Science, University of Indonesia

So far the government seems indecisive in determining its vision regarding information technology and telecommunications. The new ministry must be able to answer the question: In what areas should the government push the growth of this sector?

We have witnessed a surging global growth in information communications and technology (ICT) investment in the past three years. The private sector has started numerous initiatives in areas projected to be profitable.

This is despite the fact that the government has not given any indication as to how the government would like to place the role of ICT in the national framework.

This does not mean the government should take control of areas or of industries it thinks are in need of support. It only needs to state its vision of this sector. Due to the lack of vision, government bodies and private sectors have ended up overlapping and hence spending has been inefficient.

In the short term to medium term it would be impossible to compete with countries such as India in becoming the number one exporter of software development professionals. It would also be foolish to try to become a leader in new technologies such as Japan. We are not even close to having the supporting infrastructure.

Should we draw up an analysis of our strengths, weaknesses, opportunities and threats (SWOT analysis) on Indonesia, we will discover that in the real sector we have potential advantages over other countries.

Information technology and telecommunications could be used extensively to provide added comfort for local and international tourists. A good monitoring system would also inform us of the types of tourists and their needs, so that we could customize tourist facilities.

The use of ICT has not been utilized fully in the mining and energy sector and related sectors, such as between suppliers and the mining and energy companies, or between mining companies and traders.

In agriculture and fisheries, in which products must be fresh, the role of ICT is even less developed. The extensive use of ICT to support logistics and distribution would both enhance our local as well as export business activities in these sectors.

The government should invite the private sector to take a leading role in the development of ICT within the areas of tourism, energy and mining and agriculture and fisheries. The government could then provide incentives to make ICT investments lucrative.

ICT investment by the private sector within those industries would create a multiplier effect within the core of those related industries, later on affecting other non-core areas of those industries. Attractive conditions should be created for both local as well as international investors.

Appropriate regulations and facilities need to be put in place to create certainty for international investors. We have so far not been able to provide conducive conditions or certainty for investors.

Such measures would indicate that Indonesia has positioned itself as a future user of ICT to support real sector industries. To attempt to become a leader within one or more of the ICT sub- domains in the short term or medium term would not be the optimum choice. This positioning, however, would of course be further determined by the current political and economic situation.

The government needs to quickly formulate and articulate its vision on information technology and telecommunications. With the appropriate framework in place, the investment and development of ICT can effectively support the overall growth of the economy.