Jakarta, April 5, 2024 – Sinar Mas, one of Indonesia’s largest business conglomerates, has entered into a strategic partnership with LG CNS Co., Ltd. (“LG CNS”), a leading South Korea-based provider of data center services, IT solutions, cloud infrastructure, and digital transformation (“DX”) technologies, to form a joint venture focused on delivering information and technology services tailored to the Indonesian market.
The agreement was formalized on Wednesday, March 27, 2024, in Seoul, South Korea, between PT SMPlus Digital Investama (“SM+”)—a Sinar Mas subsidiary engaged in digital infrastructure and services investment —and LG CNS. The signing ceremony was attended by Sinar Mas Board Member, Franky Oesman Widjaja, Sinar Mas Senior Advisor, Bill Cheng, and SM+ President Director and CEO, Herson Suindah. Representing LG CNS were CEO, Shin Gyoon Hyun, Executive Vice President of Cloud Business, Tae Hoon Kim, and Executive Vice President of Finance & Public Business, Moon Keun Choi.
This partnership follows SM+’s strategic assessment that robust data center and cloud infrastructure is essential to driving Indonesia’s economic growth. To realize this vision, SM+ has chosen to collaborate with LG CNS, leveraging LG CNS’s deep expertise in IT and cloud solutions alongside Sinar Mas’s extensive understanding of Indonesia’s market dynamics. The joint venture aims to deliver effective and tailored digital solutions that address both the challenges and opportunities within Indonesia’s rapidly evolving digital ecosystem. According to global market research firm Gartner, Indonesia’s IT services market is projected to grow at a compound annual growth rate (CAGR) of 23%, expanding from approximately USD 3.2 billion in 2023 to around USD 7.1 billion by 2027. This trajectory presents significant opportunities for the joint venture to innovate, expand its presence in data center and cloud solution development, and explore emerging IT service verticals—particularly in the areas of smart city infrastructure and digital financial services—as Indonesia accelerates its nationwide digital transformation agenda.
Franky Oesman Widjaja remarked, “Together with a strong partner like LG CNS, we aim to build a cutting-edge technology platform in Indonesia that not only supports the country’s economic advancement but also fosters a sustainable and mutually beneficial business for both parties.” LG CNS CEO Shin Gyoon Hyun added, “This strategic collaboration with Sinar Mas will accelerate digital transformation in Indonesia by harnessing LG CNS’s DX technology capabilities.”
