April 11, 2023

Why Indonesia is Asia’s bright spot in a time of global uncertainty

Indonesia is one of the largest economies in the APAC region and has faced numerous challenges in recent years, from the Covid-19 pandemic to geopolitical tensions and rising inflation. However, despite the turbulent times, the country has demonstrated resilience and continued to grow. In fact, the Indonesian government has projected the national economic growth in 2023 to be 5.3% which is higher than the global economy’s outlook that is projected to grow by 1.7% in 2023 and 2.7% in 2024. 

There are various factors that have contributed to Indonesia’s resilience. Its large population, abundant natural resources, favorable demographic trends, and diversified economy with significant contributions from agriculture, manufacturing, and services sectors, have helped to provide a source of income and support for the economy. Furthermore, the government has also made significant investments in infrastructure from building toll roads to airports and ports, which has helped to improve the country’s competitiveness.

Digital transformation as a strategic imperative

The positive outlook has in many ways driven organizations in Indonesia to transform the way they operate. From a business perspective, we are now seeing organizations in Indonesia ramping up their digital transformation journeys to remain competitive, improve efficiency and respond to changing market demands and technological advancements.

Going beyond post-pandemic recovery, businesses today see digital transformation as a strategic imperative. The majority are looking at investing in technology that can transform their business to be more agile so that they can ride the wave of opportunities that the rising economy has to offer. To do so, businesses must be able to first recognize what is coming their way and ensure that they are ready to take advantage of the opportunity as it comes through.

Case in point, Alfamart. As Indonesia’s leading convenience store chain, the company understands that modern enterprises need versatile planning, forecasting, and modeling capabilities that span processes no matter where they sit in the organization. This simply wasn’t possible with legacy systems, so Alfamart leveraged Anaplan solutions including financial planning and analysis, store planning, and sales forecasting, to run a complex, data-driven, and detailed planning ecosystem to manage its 17,000+ stores and 100,000+ staff from across the country.

By connecting data from across its organizational functions, Alfamart’s management has gained visibility into what’s happening, why it’s happening, and where the business is headed. These advanced insights have enabled Alfamart to run real-time reports and evaluate scenarios that drive better decisions and outcomes.

Similarly, other organizations that we have worked with including Kapal Api, Danareksa, Clipan, Pertamina, and Kementerian Badan Usaha Milik Negara (The Ministry of State-Owned Enterprise) have also invested in transforming their planning process so that they can better respond to today’s dynamic market conditions, accelerate processes and drive greater value.

Changing the mindset to supercharge transformation

As organizations today look to supercharge their digital transformation journeys, it’s important to always start with the mindset first. In my conversations with prospects and customers, for example, there is still a reluctance to adopt technology because of the misconception that it will take over our jobs. While it’s true that technology may automate some tasks, it is unlikely to completely replace the human skills that are valued in many industries, such as creativity, problem-solving, and emotional intelligence. Technology also creates new opportunities in areas like software development, data analysis, cyber security, and others.

A change in mindset is necessary to embrace and successfully implement new digital technologies and processes, and this includes having clear communication and education about the benefits of digital transformation. Beyond that, investing in digital skills development is also equally important. We all know that the demand for tech talent has been growing rapidly, outpacing the supply of qualified professionals, especially in specific technical roles. With the shortage of tech talent, organizations need to continuously upskill their workforce to ensure that they have the skills and knowledge necessary to perform their jobs in a digital-first environment.  

While 2023 is expected to be a year of global instability and uncertainty, the future is bright for organizations in Indonesia, especially those that can take advantage of the opportunities that the country presents. As the business planning and decision-making platform leader, Anaplan is committed to helping organizations in Indonesia to grow amidst uncertainty by streamlining their operations and improving integrated planning across departments. If there is one thing that the Covid-19 pandemic has shown us is the importance of being able to access accurate information in order to change course quickly, and this can only be done when an organization’s data, people, and plans are connected.