SYNNEX’s operations in the Indonesian market have been extremely fruitful. We are now entering the 10th year since investment started in 2011. Statistics from 2019 show that revenue has grown by a factor of six, and profits by a factor of 18 since 2010. The compound annual growth rate (CAGR) in revenue and profit growth are 25.1% and 37.5%, respectively; both quite impressive achievements.
Top management from PT Synnex Metrodata Indonesia (SMI) held the annual strategic planning meeting at SYNNEX’s headquarters in Taiwan a few days ago. Agus Honggo Widodo—CEO of SMI—stated that SMI has reaped significant benefits in terms of new product dealerships and sales channels as of 2019. Revenue has now reached US$872 million, a growth of almost 20%. Furthermore, profit growth has exceeded 20%, securing SMI’s position as market leader at an ever-expanding distance from competitors.
David Tu, Vice President of Business Development and Strategy, SYNNEX, stated that Indonesia has the fourth largest population in the world at 260 million; and in the last decade, economic growth has remained above 5%, demonstrating great potential for development. SMI serves as distributor for over 90 globally renowned brands, such as Intel, Microsoft, Apple, HP, Dell, Cisco, Seagate, Samsung, etc. SMI has established 20 sales locations around Indonesia, supplying for 150 cities therein, and providing services for over 4,500 customers.
Furthermore, SMI successfully obtained certification from the Indonesian government in 2018 and is now one of the few suppliers able to participate in government tenders. Relevant businesses grew tenfold in 2019, the first year alone. This will serve as a key engine for continuous growth of SMI in 2020.
Looking into 2020, SMI will continue to implement a three-pronged strategy of new product distributorships, sales channel expansion, and enhance operating mechanisms. SMI expects its revenue to continue fast, two-digit growth with hopes placed in surveillance, eSports, government tenders, and commercial/enterprise solution development. US$20 million was spent on building a logistics center in Jakarta. After its completion in February 2019, it is expected to increase efficiency of product storage and dispatch, enhance customer satisfaction, and reduce operating costs. With these developments, SMI is confident in maintaining its current rate of growth.
In 2011, SYNNEX formed SMI—a joint venture—alongside Metrodata Electronics (ME), Indonesia’s No. 1 ICT distributor with 40 years of experience and a public company of great renown. During these 9 years, SMI made good use of SYNNEX Group’s cross-border business experience and long-term partnerships with large brands around the world. SMI actively assisted in introducing new products; and integrated management mechanisms such as product management, channel management, logistics management, and accounting and business analysis systems. The 9-year joint venture has been extremely successful, combining local business experience and distributor networks of local teams.