On March 27, LG CNS signed an investment agreement with Indonesia's Sinarmas to establish a joint venture.
The event was attended by LG CNS CEO Hyun Shin-gyun, Executive Vice President of Cloud Business Kim Tae-hoon, Executive Vice President of Finance & Public Business Choi Moon-geun, Chairman of Sinarmas Franky Oesman Widjaja, Senior Advisor Bill Cheng, and CEO of SM+ Herson Suindah.
Through this agreement, the two companies will establish a joint venture (JV) in Indonesia. The JV will provide data center consulting, construction, and operation, as well as cloud transformation services to Indonesian enterprises and public customers.
To this end, LG CNS will transfer its technical expertise and business capabilities accumulated in the data center and cloud business to the JV, while Sinarmas will actively explore and secure business opportunities in Indonesia.
According to the global market research firm Gartner, Indonesia's IT services market is expected to grow at a compound annual growth rate of 23% from about KRW 4.2 trillion in 2023 to reach about KRW 9.4 trillion by 2027.
The JV will focus on the data center and cloud business and will also accelerate its efforts to tap into Indonesia's IT service market, including smart city and financial IT.
LG CNS has accumulated global business capabilities by securing numerous references in Indonesia's smart city, public, and infrastructure industries. Since December 2022, LG CNS has been participating in a smart service concept design project for Nusantara, Indonesia's new administrative capital. The project envisions smart services that combine DX technologies such as AI, data, cloud, and digital twin in Nusantara.
In 2020, the company won the project to build the Core Tax Administration System (CTAS) in Indonesia, and in 2019, it successfully executed the Jakarta Metropolitan Area Light Rail System project.
"Based on LG CNS' DX technology capabilities, we will further expand our DX business in Indonesia through strategic cooperation with Sinarmas," said Hyun Shin-gyun, CEO of LG CNS.
"With LG CNS as a strong partner, we look forward to building a leading technology platform in Indonesia to promote the country's economic development and create a sustainable business for both organizations," said Franky Oesman Widjaja, Chairman of Sinarmas.
