Smart retail and cloud solutions to boost digital transformation in Indonesia
- The advertising conglomerate based in Taiwan will collaborate with Ennoconn, an investor, to create and advertise smart retail and cloud solutions for the Indonesian market.
- The investment will help FunP in its shift towards becoming a cloud services company.
The rapid adoption of mobile devices and the internet has fueled significant growth in Indonesia’s digital economy in recent years, with e-commerce, online media, and ride-hailing services driving further expansion. To support digital innovation, the government has taken steps such as building infrastructure, providing funding for startups, and offering digital skills training.
FunP Innovation Group, a Taiwanese conglomerate specializing in digital advertising and technology, recently secured funding of US$3.12 million from Ennoconn Corporation to develop smart retail and cloud solutions for Indonesia and other APAC countries through its business unit, cacaFly.
Cloud computing drives economic growth and reduces environmental impact in Indonesia
The potential of digital technologies such as AI, blockchain, cloud computing, and IoT for businesses and the government has been demonstrated by a recent PwC study that showed that Indonesia’s GDP could potentially increase by US$10.7 billion between 2021 and 2025 if cloud computing is implemented.
Cloud computing not only creates economic value but also has a positive environmental impact by reducing the need to travel. The study also revealed that 89% of SMEs already use cloud computing, resulting in over a 20% increase in revenue. Approximately one-third of large enterprises reported saving 40% on costs due to cloud computing.
“Ennoconn’s capabilities in AIoT, together with our own in cloud computing and marketing technology, equals the opportunity to develop pioneering retail solutions for Indonesia and beyond,” said Brian Yang, funP group Co-founder, and Chief Strategy Officer. “We are excited to increase our footprint in one of the fastest-growing markets in the world, with a rapidly expanding middle class.”
Having already established a presence in the Indonesian market, FunP group has continued to expand through its subsidiaries, cacaFly and TenMax. In collaboration with PT Metrodata Electronics, Tbk, cacaFly formed a data-driven digital marketing agency, PT cacaFly Metrodata Indonesia (CMI), while TenMax opened an Indonesian office to work on digital advertising solutions.
Indonesian retail market is growing rapidly, offering opportunities for retailers
The organized retail market in Indonesia is growing rapidly, with companies expanding their stores and exploring business potential in different areas. This trend is expected to continue throughout the forecast period of 2023-2028, contributing significantly to the growth of the retail sector in Indonesia.
Additionally, the surge in online shopping, driven by Indonesian retail brands, both small and established, expanding their online presence, is expected to see a growth rate of 25% in the next five years. As consumers become more comfortable buying online, the online channel presents enormous opportunities for retailers in Indonesia.
Other factors contributing to the growth of the Indonesian retail market include the rise in tourism, growing preference for local brands, and increased marketing activities by retailers.
At the 2022 G20 Summit held in Indonesia, President Joko Widodo expressed his intention to focus on the digital transformation of the economy through investments in cloud computing, 5G, and the development of a new green capital city, Nusantara. This city will harness smart technologies and renewable energy, and the partnership between cacaFly and Ennoconn aims to aid these initiatives by developing and rolling out smart retail and cloud services solutions for Indonesia and other APAC countries.
The investment aiding funP’s transition into a cloud services company
Ennoconn plans to leverage cacaFly’s digital marketing and cloud computing expertise to enhance its IOT and industrial computing offerings in various industries, such as gaming, video-conferencing, smart cities, smart buildings, and retail.
The investment will also aid funP’s transition into a cloud services company. In partnership with Google Cloud, cacaFly launched the Cloud AI+ Solution Center in Taiwan in 2022 to assist local and regional enterprises in their digital transformation by shifting from on-premise computing to cloud computing.
Specifically, the partnership between cacaFly and Ennoconn will help the latter to integrate AIoT technology into its operations across global markets, enabling them to provide ESaaS software solutions while integrating environmental, social, and governance (ESG) applications. For instance, this technology can help industries to optimize energy consumption, reduce carbon footprint, and enhance sustainability.
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