Jakarta. Sumber Sinergi Makmur, known for its Fox Logger GPS Tracker product, has been appointed as a local partner in Indonesia by Kingdee International Software Group Co. Ltd., an enterprise resource planning (ERP) software company from China and a major competitor to SAP and Oracle in the global market.

This appointment is a strategic step for Kingdee in expanding its reach into the Indonesian market for digital solutions adoption. Currently, Kingdee is represented by Liu Yujie and is headquartered in Singapore.

Alamsyah Cheung, CEO of Sumber Sinergi Makmur (IOTF), emphasized the importance of this partnership for the company and the technology industry in Indonesia. According to him, this collaboration presents a golden opportunity to bring Kingdee's cloud-based ERP solutions to businesses in Indonesia.

"With our track record in building businesses from scratch to going public, we believe we can bridge the need for digitalization, especially for businesses that have not yet adopted advanced ERP systems," said Alamsyah in a press statement on Monday.

Alamsyah also explained that the data center market in Indonesia shows promising potential. Projections indicate that the Indonesian data center sector will grow at a compound annual growth rate (CAGR) of 14 percent from 2023 to 2028, with the market value expected to increase from US$2.06 billion in 2023 to US$3.98 billion in 2028.

According to Alamsyah, Kingdee's strategic move to strengthen digital infrastructure in Indonesia aligns with the global expansion trends of other technology companies. As global companies invest in data centers in Indonesia, the market is expected to continue growing, creating opportunities for technology industry players to innovate and improve their competitiveness in the digital space.

"As part of this partnership, IOTF and Kingdee plan to deepen research to develop the data center business in the future, in line with Kingdee’s fully cloud-based system," he said.

With IOTF's background of starting as a traditional business and evolving into a technology-based company, Kingdee hopes that this partnership can reach the MSME segment, which has yet to adopt efficient and easy-to-implement ERP systems.

"Kingdee, with its global experience, will provide technological advantages, while IOTF will ensure smoother adaptation in the local market," Alamsyah added.

On the other hand, Alamsyah explained that this partnership also opens up further expansion opportunities, including the possibility of mergers and acquisitions in the future to accelerate the development of digital infrastructure, especially data centers in Indonesia.

With both Kingdee and IOTF listed as public companies, this synergy offers greater flexibility for strategic expansion that will strengthen Indonesia's position as a key player in the digital economy in Southeast Asia.

"With Kingdee's market capitalization reaching Rp 100 trillion, far surpassing IOTF's current market capitalization of around Rp 600 billion, this collaboration also opens up opportunities for both companies to grow together and strengthen the technology ecosystem in Indonesia," he concluded.

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