M-WEB to invest $10m next year
Moch. N. Kurniawan, The Jakarta Post, Jakarta
Leading Internet firm M-WEB Indonesia, a subsidiary of South Africa-based firm Myriad International Holdings (MIH), said on Wednesday it would continue to invest in the country, despite the currently unfavorable economic situation.
David Burke, M-WEB Indonesia business development director, said the company would invest about US$10 million next year, which means its investment will have totaled $30 million after three years of operation in the country.
"We're optimistic about the future of the IT (information technology) sector in the country. We will invest more here to make M-WEB Indonesia our (MIH's) largest company in Asia, competing with M-WEB China," he said, after the launching of its new corporate services division.
The company would earmark the funds to expand its business, including opening new offices, developing new Internet kiosks and buying new equipment and software, he said.
He was reluctant to provide any details.
MIH, with subsidiaries in many countries in Africa, Europe and Asia, entered Indonesia two years ago by establishing M-WEB Indonesia amid euphoria over Internet businesses.
It is now among the few companies that managed to survive the Internet slump, which has bankrupted most Internet businesses locally and globally.
Last year, the company acquired several portal companies, including Astaga.com and Satunet.com, after beginning with its own portal, MWEB.co.id. The portals now receive about 1.4 million visits every day.
Aside from the portal business, M-WEB has entered the Internet service provider (ISP) business by acquiring a local ISP, Cabinet, last year. It has also invested in Internet retail business by establishing Internet centers in several universities across the country.
Corporate services director Ian Whalley said he was upbeat that the new division would contribute revenue of about $1 million to the company this year.
"I'm optimistic about the future of the new division, as we have kept growing so far," he said, adding that the division had been operating since early this year.
The division provides services -- including the development of computer networks and software, website design and programming -- that allow corporate clients to do business on the Web at minimum cost and with high reliability.
Whalley said he expected the new division's revenue to grow by 30 percent to 50 percent next year, due to continuing growth in its customers.
At present, the division serves about 300 clients, including several oil and gas firms, and femina-online.com.