M-WEB to invest $10m next year

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.