Political and Economic Change Affecting Indonesia Packaged Software Market

05 August, 2003

Jakarta, August 05, 2003 – IDC's latest study on Indonesia software market 2002-2003 revealed that political reform and economic change are affecting Indonesia software market. Over the past one year Indonesia software market had generated US$94.8 million, however compare with the last year, which reached US$93.5 million, in year 2002 Indonesia software market only experienced flat growth of 1.4%. The study divided software market into three categories, namely application software market, application development and deployment and development software market, and system infrastructure software market.

Out of three primary software market categories, since year 2001, with a total of 44.1%, application software market continues to experience largest proportions in the market share. System infrastructure follows closely behind applications software with 36.1% market share. In addition, compare with application software market growth, which only reached 0.05%, System infrastructure experienced fairly high growth of 8.8%.

From the total packaged software market revenue, SAP was identified as the leading software vendor 2002 packaged software market in terms of software license and maintenance revenues. SAP managed to have growth of 5.1%, its enterprise application offerings succeed to acquire 13.9% of total market share. Microsoft managed to persevere its second position with revenue growth of 17.9%, Microsoft productivity tools such as office succeed to boost their sales in the Indonesia software market. Despite its decline, with 7.4% market share IBM managed to maintain its third position.

Application Software Market

Application software market in Indonesia make up the largest proposition of the total packaged software market in Indonesia, which accounted 44.14% from the total revenue. Within the applications segment, the single largest segment was Back-Office Applications, which contributed for 66.8% of the market. Furthermore the second largest segment in the application software market collaborative applications succeed to achieve double digit growth of 38.7%, Microsoft outlook/exchange and IBM lotus domino, dominate the collaborative application segment.

Application Development and Deployment Software

In year 2002, Application Development and Deployment accounted 18.7% from the total packaged software market. Application Development and Deployment Software (AD&D) consists of three secondary segments, namely Information and Data Management Software, which accounted 52.2% from the total AD&D Market, followed by application design and construction tools at 16.3%, and applications life-cycle management at 15.6%

System Infrastructure Software

The system infrastructure software market is made up of seven primary categories: system management software, network management, security software, storage software, serverware, networking software, and system-level software. In year 2002, the overall Indonesia system infrastructure software market accounted 34.2% of the total market, an increase of 8.8% over 2001. System level software makes up 67.9% of the total system infrastructure software and security software market achieved the relatively high growth of 22.3%

Future Outlook

IDC expects that Indonesia's packaged software market will increase at an aggregate CAGR of 7.8% from 2002 to 2007. Furthermore, system infrastructure market is expected to be the fastest-growing segment, particularly security software and system-level software. IDC believes that Windows and Linux operating system will expand significantly. Meanwhile, application software is expected to increase at a CAGR of 7.7%. CRM and engineering will be expected to have relatively fast growth in the next five years. Furthermore the AD&D markets are projected to increase at an aggregate CAGR of 6.4% from 2002 to 2007.

For more information about purchasing this research, please contact Hazmi Yusof at +603-2169-7526 or hyusof@idc.com. For press enquiries, please contact Stephen Chong at +603-2169-7521 or ckchong@idc.com.

Contact

Chee-Kian Chong
Events & Marketing Executive
Tel: +603-2169-7521
Fax: +603-2163-5098
Email:ckchong@idc.com