ASPILUKIVision

• Developing national software industry to be competitive in the global market

Strategy• Accelerating the growth of new business in

software development, both in quality and quantity.

• Develop the creation of a conducive local market environment

Link up withKey Universities

To generate Required Employees

Select key placesfor Incubators/Entrepreneur

Clusters

Venture CapitalFirms specializing inTechnology/Internet

Alliance with Global IT Products

To “WEBIFY” LocalIndustries

Leverage SkillsFrom local Industries

to Global Market

Bring-in more Programming

Works for LocalSoftware Industries

Broaden ProductsCapabilities/Software

Skills base

More financingCapabilities,

More local start-up

Achieve enoughEconomies of scale to

Build own product

Select & focuson key Software/

Internet Industries

SOFTWARE INDUSTRY FOCUS STRATEGIES :• SUPPORT LOCAL INDUSTRY• BUILD UP EXPERTISE ON CERTAIN GLOBAL PRODUCTS • USE THIS EXPERTISE FOR BOTH LOCAL MARKET AND GLOBAL MARKET

Building Blocks of Software/ Internet IndustryIndonesia

Start Here

Software industry cluster

Gambar 3 – Klaster Industri Software

GeneralPurpose

Application

Special Purpose

Application

Marketing &Sales services

Total Solution &Integration

Down StreamBusinesses

Operating System Hardware

SupportingServices

SoftwareComponent

& Tool

Peta Pengembang Software Indonesia

• Masih kurang dari 10% dari anggota yang menggarap pasar aplikasi ‘mass market package software’– Mudah dan maraknya pembajakan– Apresiasi terhadap nilai software

• Mayoritas mengembangkan aplikasi bisnis, dalam bentuk ‘enterprise solution’ ataupun ‘professional software service’.

• Keterbatasan inovasi dan kreativitas karena faktor kompensasi yang dipengaruhi oleh penegakan HAKI

Indikasi Lokasi Klaster ::

Sumut, Sumbar, DKI , Banten, Jabar, Jateng, Jatim, Bali, Kalsel, Kaltim dan Sulsel

:

SumutSumut

KalbarKalbarSulutSulut

SulselSulsel

Jakarta

Jabar

Batam

PENGEMBANGAN KLASTER TELEMATIKA

Surabaya

Makasar

Sumut

Sumbar

BantenJateng

Bali

Kalsel

Kaltim

Role of industry sector

Market &Industry SW& IT Service

ISV

SWVendorAsosiasi

Government

• Policy & regulations• IT utilization• Physical infrastructure• Human resource

OtherOrg

SDM Infrastruktur Kebijakan Pemanfaatanfisik & hukum

Development Strategy

PENDIDIKAN FORMAL DAN INFORMAL TIK

KEMAMPUANINDUSTRI

LOKAL

IMPOR INDUSTRY

PENGEMBANGAN SDM PERKOTAAN

PUSAT FASILITASIPENGEMBANGAN

INDUSTRI TIK

EKSPOR TIK PEMERINTAHAN

PENGEMBANGAN SDM PERDESAAN

PENGEMBANGANPASAR MODAL

TASK FORCETIK NASIONAL

TIKPERKOTAAN

TIKPERDESAAN

SDM UNTUK BERSAING

DI PASAR GLOBAL

PERCEPATANPEMBANGUNAN

TELEKOMUNIKASI

INVESTASI TERBUKA

INDUSTRI TIK

Indonesia – IT Market

2007 2008 YTY 2009

Software 88 113 28% 114Hardware 2166 2425 11.9% 2668IT Services 492 564 14.6% 635

Total 2979 3366 13% 3736

Source: IDC, BMI

Indonesia USD 3.7BIndia USD >20BUSA USD >400B

9

History• India

– Started Sending Programmers to Client Sites in mid-1970’s– Y2K Problem Addressed in 1990’s by India in India– CMM Certification Wise Part of Strategy– Develops 1% of All World’s Software (but Owns Almost None)– Now Growing at 20-25%/year– Many US Multi-Nationals Opening Own Offices in India– Salaries Escalating Rapidly

• China– Started Much Later; No Formal SW Education Before 2001– Current University SW Education Highly Theoretical– Highly Segmented, So Difficult to Accept Huge Contracts– Primarily Focused on Own Emerging Chinese Market– Salaries Still Very Low– Manufacturing Strength May Drive Embedded SW Business

10

Indonesian Opportunities & Challenges: Education

• India – Producing 350,000 New Engineers/Year– Production Growing at 6%/Year– But Only Top Tier Schools Are Producing Top Tier Students– Few/No Research Opportunities (Nothing to Foster Creativity)– Huge Classes Diminish Quality

• China– Producing 600,000 New Engineers/Year– Production Growing at 6%/Year– Rote Learning (heavily Government regulated)– Heavily Standard Exam-Based (Nothing to Foster Creativity)– Lots of Research Concentration (and Government Funding; Fosters

Creativity)• USA

– Producing 70,000 New Engineers/Year– Production Steady– Lots of Research Opportunities (Creativity Fostering) x

* Extracted from Globalization and Outsourcing of Software, ACM.org.

11

Indonesian Opportunities & Challenges: Education

• Indonesia*– Student Production? 35,000 per year

– Need to Emphasize Changing Nature of IT • Not Teach One Way to Do Anything• Teach History/Present(as just a snapshot)/Trends

– Need to Educate for Global Market• Global Business Dynamics• Cross-Cultural Emphasis

– Need to Foster Creativity and Innovation• Encourage Faculty and Students to Conduct Research• Reduce Teaching Loads of Selected Faculty

– Need to Combine Business and Technology • Fundamental Flaw in USA and Most Countries! x

* Adapted from Globalization and Outsourcing of Software, ACM.org.

12

Indonesian Opportunities & Challenges: Kind of Work

• India– Programming, Testing, and Maintenance– SW Architecture, Design, PM, IT Consulting– IT Enabled Services– Call Centers and Telemarketing

• China– Manufacturing

• South Korea– Robotics

• Philippines & Mexico– Bi-Lingual Call Centers (English/Spanish)

• Israel– Security and Cryptography and Anti-Virus Software

• Czech Republic and Canada– Proximity to Customers (Germany and USA)

• Indonesia– Which Are Most Desirable?– Which Are Achievable?– Which Should Indonesia Target?– What Are Indonesia’s Strengths/Weaknesses/Opportunities/Threats?

13

Primary Flows of Outsourced IT Work

USAUSA

EasternEasternEuropeEurope

ChinaChina

IndiaIndia

JapanJapan

AustraliaAustralia

S. KoreaS. Korea

S. AmericaS. America

Note this does not show Note this does not show sales of application sales of application

software, where USA is #1 software, where USA is #1 and Japan is #2 in exportsand Japan is #2 in exports

WesternWesternEuropeEurope

Francophone Francophone AfricaAfrica

14

Infrastructure

• India– 1991 – Complete Deregulation of Telecommunications –

opened door to low-cost broadband– Otherwise, Indian Infrastructure (Roads, Airlines, Water,

Sanitation, Building Standards) Fairly Weak

• China– Roads Terrific– Legal System Still Backward– Everything Still Heavily Regulated (but Making Strides)

• Indonesia– What Are Indonesia’s

Strengths/Weaknesses/Opportunities/Threats?

15

Foreign Direct Investments

• India– 1970’s – New Laws Limited Foreign Ownership; Many

Multi-National Companies Left– 1991 – Economic Crisis Caused New Laws

Encouraging Foreign Investments

• China– 1992 – Removed Laws Restricting Private Ownership– 2005-2007 – Hundreds of Add’l Laws Removed

• Indonesia– What Are Indonesia’s

Strengths/Weaknesses/Opportunities/Threats?

16

Taxation

• India– 1981 – New Laws Created Tax-Free Zones for Software (and

Manufacturing)– 1993 – New Laws Created Tax-Free Zones for all Science

and Technology Parks– 2005 – New Laws Making Most Software Companies Tax-

Free

• Indonesia– What Are Indonesia’s

Strengths/Weaknesses/Opportunities/Threats?

17

Intellectual Property

• China– Major Piracy Problems Still Unchecked

• Indonesia– What Are Indonesia’s

Strengths/Weaknesses/Opportunities/Threats?

Komoditisasi SoftwareN

ilai

Waktu

Infrastruktur

PerangkatPengembangan

Platform Aplikasi

Aplikasi Umum

Aplikasi Enterprise

Aplikasi Vertikal Aplikasi Vertikal

Aplikasi Enterprise

Aplikasi Umum

Platform Aplikasi

PerangkatPengembangan

Infrastruktur

OSS(IGOS)

MayoritasAnggotaASPILUKI

Tren perkembangan software

Akibat ‘convergence’ antara IT & Telekomunikasi

& gerakan software bebas • Software menjadi komoditas• Peluang menjual software sebagai services

– Model Bisnis– Ketersediaan infrastruktur fisik– ‘Shared services’

• Pengembangan berbasis komunitas– OSS: Open Source Software

Konsep ASP Agregator

Infrastrukturyang adasaat ini dipenggunajasa

Aplikasi2 berbasiswebYang dibuatsendiri ASPs Intranet

In-house

ASP Agregator

ASP AgregatorPenyedia2 jasa IT

Managedservices

Managedhosting

Colocationservices

IT management

platform

Katalogaplikasi

SupportServices

Summary

• To develop national software industry requires consistent building blocks supported buy all parties including global players

• There are four pilars for development:– Human resource– Physical infrastructure– Policy & regulation– IT utilization

• Indonesia unique strength for the new development trend such as SaaS and Cloud Computing