Whitepaper – Delivering exceptional customer experiences in an OJK-compliant environment

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The Financial Services industry (FSI) in Indonesia is increasingly investing in digital. This is driven by both user demand and governmental incentives. However, organisations can be at very different stages of their digital maturity. Some organisations are in the early transitional stages while others are investing to enhance capabilities, they started investments in long ago. An understanding of the digital maturity of a typical financial services organisation in Indonesia gives their industry peers an opportunity to benchmark their technology and digital roadmap.

FSI in Indonesia is intensely competitive with a large number of players. There is competition from the fintech start-up community that is increasing market size and has driven a growing reliance on digital. Why is creating an exceptional customer experience a key differentiator in this competitive market? What are the impacts of OJK regulations on customer data management? How can a financial organisation create a single customer view across multiple channels and deliver personalised marketing initiatives?

Read this whitepaper to find out how digital-savvy customers are driving transformation in the financial services industry in Indonesia including:

  • The key business priorities for 2021
  • The shift in engagement strategies and channels
  • The dependence on technology to support their marketing strategy

Click below to download the whitepaper

Whitepaper-Delivering Exceptional Customer Experiences In An OJK-Compliant Environment

(Clicking on this link will take you to the Sitecore website where you can download the whitepaper)


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Operating in the New Normal – Telecom Providers in Southeast Asia

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Never before has the world experienced a shutdown in both supply and demand which has effectively slammed the brakes on economic activities and forced a complete rethink on how to continue doing business and maintain social interactions. The COVID-19 pandemic has accelerated digitalisation of consumers and enterprises and the telecommunications industry has been the pillar which has kept the world ticking over.

It is unthinkable just how the human race would have coped with such massive disruption, two decades ago in the absence of broadband internet. The technology and telecom sector has seen a rise in their visible importance in recent months. Various findings show that peak level traffic was about 20-30% higher than the levels before the pandemic. The rise in traffic coupled with the fervent growth of the digital economy augurs well for the technology and telecom sector in Southeast Asia.

Revenues Hit Despite Rise in Traffic

Unfortunately, the rise in network traffic has not translated to an increase in revenue for many operators in the region. The winners, that enjoyed YoY growth in Q1 2020 despite challenging circumstances were: Maxis (4.9%) and DiGi (3.4%) in Malaysia; dtac (3.3%) and True (5.7%) in Thailand; PDLT (7.5%) and Globe (1.4%) in the Philippines; and  Indosat Ooredoo (7.9%) and XL Axiata (8.8%) in Indonesia. The telecom operators that struggled include: Celcom (-6.1%) and TM (-8.0%) in Malaysia; Singapore’s trio of Singtel (-6.5%), StarHub (-15.2%) and M1 (-10.3%); and AIS (-1.0%) in Thailand.

Key market trends include a dip in prepaid subscribers due to fall in tourist numbers, roaming income losses due to travel restrictions, and a general decline in average revenue per user (ARPU) due to weaker customer spend. The postpaid customer segment was resilient while the fixed broadband revenue stream was stable due to the increase in work from home (WFH) practices. With fixed tariffs, there are no incremental gains with an increase in usage. Voice revenue has been hit with the increase in collaboration-based communication applications such as Zoom and Microsoft Teams.

Equipment sales fell as global supply chains were severely disrupted and impacted new sign-ups of the more premium customers. Most markets in Southeast Asia depend on retail outlets as a key channel to the market, which has been hampered.

With the job losses across the world, bad debts and weakened customer spend is inevitable and it is imperative that the operators provide for reflective pricing strategies, listen to new customer requirements to ensure customer retention and strengthening of their market position. In May, Verizon’s CEO Hans Vestberg said nearly 800,000 of their subscribers were unable to pay their monthly bills. Discussions with operators in Southeast Asia also highlighted this as a current concern.

Enterprise Segment Target for New Growth

Ecosystm research shows that enterprises in Southeast Asia are increasingly considering telecom operators as go-to-market partners (Figure 1). Enterprises are demanding more than just devices and connectivity and with the fervent digital transformation (DX) efforts underway, services such as managed services, business application services, cybersecurity and network services are in demand. Technology vendors have an opportunity to partner with the right telecom operator in each market to enhance their IT market offerings, ahead of the 5G rollouts.

Top Telecom Providers in Southeast Asia

The broad 5G ecosystem inculcates cross-sector innovation and greater collaboration leading to new business models and exciting new opportunities. Singtel is the leading operator in the region and has the enterprise segment contributing approximately 65% to its revenue in its domestic market. In the World Communications Award 2019, Singtel won both “Best Enterprise Service” and “The Broadband Pioneer” awards.  This places Singtel in a fine position to capitalise on the 5G enterprise services.

5G Needed Now More Than Ever

The pandemic has seen a rise in network traffic, onboarding of the digital customer and rapid DX of businesses which has whetted the appetite for faster broadband speeds and new services. Southeast Asia countries stand to profit from the trade war between the US and China and 5G features of low latency and higher security can boost adoption of IoT, Smart Manufacturing and broader Industry 4.0 goals to drive the economy.

Fixed Wireless in Southeast Asia is expected to be very popular considering the low penetration of fibre to the home (with the exception of Singapore) and will provide enterprises with a viable secondary connection to the internet. Popular applications – including video streaming and gaming – which are speed, latency and volume hungry will also be a target market for operators. Mobile operators that do not have a fixed broadband offering can enter this space and provide a serious “wireless fibre” alternative to homes and businesses.

Governments and telecom regulators ought to make spectrum available to the major telecom operators as soon as possible in order to ensure that the cutting edge 5G communications services are made available to consumers and businesses. Many experts believe 5G can raise the competitiveness of a nation.

Recent research from World Economic Forum (WEF) has found that significant economic and social value can be gained from the widespread deployment of 5G networks, with 5G facilitating industrial advances, productivity and improving the bottom line while enabling sustainable cities and communities. GSMA notes that mobile technologies and services in the wider Asia Pacific region generated USD 1.6 trillion of economic value while the mobile ecosystem supported 18 million jobs as well as contributing USD 180 billion of funding to the public sector through taxation.

US-China Trade War Threatens to Change Equipment Supplier Landscape

Despite severe pressures caused by the US-China trade war, Huawei posted an impressive 13.1% YoY growth in 1H 2020 registering revenue of USD 64.88 billion. Both Huawei and ZTE generate approximately 60% of their business from their domestic markets which is critical with the current unfavourable global sentiments. Huawei has diversified its business and built its consumer devices business which should withstand the disruptions caused by the political challenges.

Ericsson and Nokia stand to benefit from Huawei’s current global position and this was evident with the wins for the 5G contracts by Singtel and JVCo (Singtel and M1). The JVCo announced it selected Nokia to build the Radio Access Network (RAN) for the 5G standalone (SA) mmWave network infrastructure in the 3.5GHz radio frequency band. Singtel selected Ericsson to provide for the RAN on the same mmWave network.

However, while there is an opportunity for NEC and Samsung to join the party, Huawei is expected to do well in most other countries in Southeast Asia.

The Rise of the Digital Economy in Southeast Asia

A recent Google report valued the internet economy in Southeast Asia at USD 100 billion in 2019, more than tripling since 2015, and the sector is expected to hit USD 300 billion in 2025. With a population of approximately 570 million people, the region has some of the fastest-growing internet economies in the world.

The Indonesia market is the largest in the region and is expected to hit USD 133 billion from USD 40 billion in 2025. Indonesia’s lack of a world-class telecom infrastructure coupled with their slowness in 5G adoption has not impeded the country’s attractiveness for global technology investors who see the 270 million population as an immense opportunity. US tech giants, Facebook, Google, and PayPal have invested in Indonesia to reap the benefits from the growing digital economy powered by unicorns such as Gojek, Bukalapak, Tokopedia. In June 2020, Google Cloud launched in Jakarta, only the second in the region after Singapore with the four big unicorns being anchor customers.

In 2025, Google predicts Thailand to be the second-largest internet economy worth USD 50 billion. The internet economy for Singapore, Malaysia and the Philippines are estimated to be over USD 27 billion each. Shopee and Lazada are the top eCommerce apps in the region and have seen an increase in sales due to the disruption in the Retail industry. In-store shopping contributes to more than 50% of Retail in Singapore and Malaysia – this provides a tremendous opportunity for eCommerce players.

While movement restrictions are gradually being lifted, some things may never return where they were before COVID-19. Public debts have risen with numerous aids and handouts impacting economic growth forecast and rising unemployment is impacting customer spending power. On the plus side, DX of businesses and sharp onboarding of customers have redefined interactions, and sectors such as Education, are going online which will boost the digital economy. While the challenges are evident, exciting times are ahead for the technology and telecom sector in Southeast Asia.


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