Synnex Indonesia enters the market precisely and win-win with strategic alliance partners
Synnex’s 9-year investment in the Indonesian market has yielded remarkable results, with revenues increasing 6 times and profits increasing by up to 18 times. This achievement not only benefited Synnex, but also significantly invested in the investment profit of Metrodata Electronics (ME), a joint venture partner. Since Synnex Indonesia accounted for 70% of the parent company's ME revenue, Susanto Djaja, ME's managing director and also chairman of Synnex Indonesia, said that since the two parties cooperated for 9 years, the share price of ME has grown 20 times, which is the best witness of the success of the cooperation.
Synnex entered the Indonesian market and fully grasped the best time to "accurately enter the market." Synnex began to contact ME in 2009. After the financial turmoil in 2008, global companies are trying to regain their strength from the market that has been hit; together with the Indonesian presidential election in 2009, they have further promoted market reforms, banned smuggling, and reforms. Economic policies such as the tax system have gradually formalized the operating environment and formed an investment environment suitable for foreign investment. Seizing the Indonesian economy is about to enter the gold growth cycle, ME also recognizes that this rapid development opportunity requires the introduction of partners with international operating capabilities. The two sides formally formed a strategic alliance in 2011. The joint venture achieved a win-win satisfaction in nine years.
Agus Honggo Widodo, CEO of Synnex Indonesia, stated that before the establishment of Synnex Indonesia, there were only 5 brands represented by ME; after 9 years of cooperation with Synnex, Synnex Indonesia currently represented 90 brands and its product line covers information software and hardware. Systems, communications, commercial products, and cloud, security and IoT related applications. The sales channel was expanded from the original agency sales to the B2B and government bidding channels, and the revenue and profit growth were quite satisfactory.
Du Shuwu, President of Synnex International Group, said that the most important reason for Synnex to choose ME as a partner is the determination and accomplishment of ME's pursuit of institutionalized operation. The value of each other is consistent. The cooperation between the two parties can last for a long time. This is a very correct and successful choice.
ME is a listed company in Indonesia and is also the largest telecommunications network operator in Indonesia. In 2011, it was jointly established by Lianqiang and Lianqiang Indonesia. Both parties held half of the shares. The Ciputra Group to which ME belongs is a well-known Indonesian group. The founder is Xu Qinghua, the richest man of Chinese descent in Indonesia.