The Indonesia IT market is to grow at a CAGR of 17.97 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing support received by the Indonesian Government. The IT market in Indonesia has also been witnessing increasing adoption of E-commerce. However, increasing piracy in the Software segment could pose a challenge to the growth of this market.
The increasing adoption of e-commerce is a major trend witnessed in the IT market in Indonesia. E-commerce in Indonesia is still in its initial phase, and the E-commerce market generated revenue of US$265 million in 2012 and is expected to increase at a steady rate and reach US$735 million by 2014, growing at a CAGR of 46.03 percent during the period 2012-2016. However, the growth of the E-commerce market in Indonesia is curtailed by certain challenges such as the infrastructure and logistic issues in Jakarta and other cities. Further, e-commerce facilitates home delivery and provides the comfort of shopping online, thus promoting online shopping in the country. In addition, various retailers have started offering the cash on delivery payment option, which is likely to help customers overcome the issue of online security theft.
One of the major drivers in this market is the increase in government support to improve the IT infrastructure in the country. The government has started a number of initiatives that have a positive impact on the growth of the IT market in Indonesia. For instance, the government increased its spending on internal infrastructure such as data centers, fixed wireless deployments, including WiMAX and broadband networks.
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