Indonesian Political, Business & Finance News

Lack of clear strategy hampers IT development

| Source: JP

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.

View JSON | Print