Jakarta, 10 September 2024 – Sinar Mas, a business conglomerate covering various sectors in Indonesia, through its digital infrastructure investment platform, SM+, and LG CNS, a leader in digital transformation from South Korea, have launched their business collaboration, LG Sinar Mas, a joint venture that provides cutting-edge information technology (IT) solutions and services across Indonesia.
“Through this partnership, we are confident in our ability to contribute to a future where technology seamlessly integrates into the daily lives of millions of Indonesians, helping us become more connected, prosperous, and intelligent. We believe in the power of collaboration to propel us further, to go far and beyond,” said Franky Oesman Widjaja, a Board Member of Sinar Mas, during an event in Jakarta attended by SM+ CEO Herson Suindah, LG CNS CEO Hyun Shin Gyoon, and LG Sinar Mas CEO Han Donghyup. This event follows the previously signed Joint Venture Agreement on March 27, 2024, in Seoul, South Korea, which laid the foundation for this strategic collaboration.
A New Chapter for Indonesia’s IT Services Sector
LG CNS’s extensive experience in digital technology, combined with Sinar Mas’ deep knowledge and track record across various business sectors in Indonesia, is poised to meet the needs of the Indonesian market, which is rapidly digitizing and is projected to reach market value of approximately USD 7.1 billion by 2027, according to global market research firm Gartner.
This is reflected in LG Sinar Mas’ initial efforts to develop and operate a state-of-the-art data center and provision cloud migration services for enterprises in Indonesia. As part of its strategic and business roadmap, LG Sinar Mas plans to further expand its services to include IT support for smart city development and financial services, aligning with its slogan to be “The Most Trusted, Reliable, and Innovative IT Service Provider in Indonesia.”
According to LG Sinar Mas CEO Han Donghyup, the first project currently undergoing for LG Sinar Mas is a new data center development in the Central Business District of Kuningan, South Jakarta.
This advanced data center will be ready to support the deployment of Artificial Intelligence (AI) and is projected to cost over IDR 4.7 trillion or USD 300 million. This project is expected to be completed by mid-2026 and will target domestic as well as multi-national enterprises. This collaboration with LG CNS is among several digital-based initiatives, innovations, and partnerships within the Sinar Mas ecosystem which will also be showcased at the Sinar Mas Digital Day 2024 event, which will be held at the end of September at ICE BSD City, South Tangerang.
The collaboration between Sinar Mas and LG CNS is expected to position LG Sinar Mas as a leading player in Indonesia’s technology landscape, contributing to digitalization and economic growth while improving the quality of life for Indonesians through user-oriented technology. “I have a strong belief that we can achieve great things together. The alignment of goals, complementary expertise, and shared vision will be the foundation of a successful partnership that not only meets but also exceeds expectations,” said Hyun Shin Gyoon.
