S'pore's Frontline enters local IT market

The Jakarta Post, Jakarta

Frontline Technologies Corporation Ltd., a Singapore-based IT services provider, has agreed to purchase a 49 percent stake in PT E Metrodata Com (EMC) -- a subsidiary of publicly listed IT company PT Metrodata Electronics.

The deal is worth US$1.9 million.

Metrodata, which commenced doing business here 32 years ago as a wholesale IT hardware distributor, expanded into outsourcing IT services in 1999. The purchase is expected to accelerate Metrodata's growth, according to Metrodata director Sjafril Effendi.

"For 2007, Metrodata is targeting $4 million from outsourcing from Indonesia's IT market, which is estimated at some $60 million," said Sjafril on Thursday.

Metrodata's IT outsourcing services comprise help-desk service management -- including call-center services, end-user support and infrastructure management -- applications management, and desktop, network, system and data-center management.

"Up to 2006, the help-desk services accounted for 50 percent of Metrodata's outsourcing business. We hope that starting this year, in cooperation with Frontline, we will be able to increase the contribution from IT infrastructure outsourcing services to 75 percent, while the rest will be accounted for by help-desk services," Sjafril added.

This year, Metrodata is targeting $100 million in revenues from its distribution business, and $50 to $60 million from its solutions business.

About 70 to 75 percent of IT spending in Indonesia is on hardware, while IT services and software only account for 30 percent, said Sjafril.

In 2007, the total national spend on IT in this country is expected to reach about $ 1.9 billion. (07)
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