TCS to set up Asia-Pacific software production in RI

Rendi A. Witular, The Jakarta Post, New Delhi

India's largest computer software producer, Tata Consultancy Service Ltd. (TCS) could well be planning to open its Asia- Pacific headquarters in Jakarta, which would also function as a software production center for the region.

Coordinating Minister for the Economy Aburizal Bakrie announced on Wednesday that TCS executives had conveyed their seriousness about expanding the business in Indonesia during a private breakfast meeting with President Susilo.

"TCS is very serious about making Jakarta its Asia-Pacific headquarters as well as a center for software production for the local and export markets. Their investment is not huge, but the export of their products will be huge," said Aburizal.

There were no further details about the meeting from the company's executives.

In the first quarter of this year, TCS recorded revenue of US$9.82 billion, higher than its rival, Infosys Techonologies Ltd., which booked a revenue of $6.85 billion.

TCS is part of one of Asia's largest conglomerates, Tata Group, which has interests in energy, telecommunications, financial services, chemicals, engineering and materials.

Five years ago, the Indonesian Ministry of Trade and Industry predicted that software could contribute to the country's target of US$30 billion in the exports of electronic products by 2010. The ministry reported a $6 billion electronics exports revenue in 2003 and expects that the figure could more than double to $13 billion next year.

Industry Minister Andung Nitimihardja claimed on Tuesday that exports of software alone from Indonesia amounted to US$400 million last year, but he did give any more details.

Aside from the meeting with TCS, President Susilo also met executives from the Essar Group, who conveyed their seriousness about expanding business in Indonesia in the oil refinery, steel and power sectors. Essar has already invested approximately $180 million in a steel production plant in Cilegon, Banten.

In the evening, President Susilo also met 20 Indian businessmen and 15 Indonesian businessmen during a business forum.