Metrodata & FPT Launch Joint Venture to Lead Cybersecurity & AI Transformation in Indonesia

Jakarta, Indonesia, 23 September 2024 - On September 23, 2024, PT Metrodata Electronics Tbk (“Metrodata”) and FPT IS Company Limited (“FPT”) officially signed a cooperation agreement to establish the joint venture PT FPT Metrodata Indonesia (“FMI”). The partnership between these two major companies represents an ambitious strategy to seize new market opportunities, focusing on investment in R&D, the development of intellectual property, and top-tier professional services.

Indonesia, one of the fastest-growing digital economies in Southeast Asia, is expected to become the region’s largest digital economy by 2030. According to the e-Conomy SEA 2023 report, Indonesia's digital economy is projected to reach $360 billion by 2030, up from $110 billion in 2025. As the digital landscape evolves in the country, Indonesia is also poised for opportunities in Cybersecurity Management and Artificial Intelligence (AI) transformation.

Specifically, in the initial phase, FMI will focus on the development of cybersecurity services, followed by AI services and cloud GPU services, as well as software development. This joint venture aims to become a leading company driving Cybersecurity as Services and AI transformation in Indonesia, with a target business run- rate of $100 million within the next five years.

Cybersecurity as a Service Market Opportunity in Indonesia

Trust is the cornerstone of any economy, and in the digital world, cybersecurity plays a pivotal role in ensuring confidence among market participants. According to a Frost & Sullivan report, the cybersecurity-as-a-service market in Indonesia is projected to be around USD 125 million by 2024, with a CAGR of about 20%. This growth is driven primarily by recent national cybersecurity incidents, a shortage of resources and talent, and new government regulations, particularly regarding the enforcement of personal data protection laws set to take effect in 2024. FMI is well-positioned to capture this growing demand while helping companies build the confidence they need to thrive in the digital economy.

Mr. Tran Dang Hoa, Chairman of FPT IS stated, “FPT has invested significant resources to position our products and services to capture AI transformation opportunities in the global market. We have earned the trust of customers worldwide and achieved $1 billion in software export revenue from the international market. Currently, FPT has identified AI as its key development strategy. The joint venture will create opportunities and advantages for us to realize this strategy. We are committed to jointly investing in ensuring that FMI will lead the Cybersecurity & AI transformation market, while also bringing value based on technological strength to businesses in Vietnam and Indonesia”.

As Indonesia's largest IT player, Metrodata brings deep local market insights, while FPT, a global leader in digital transformation company, contributes extensive expertise in software development, cybersecurity, and artificial intelligence. Together, they will drive innovation and develop cutting-edge intellectual property products and services tailored specifically for Indonesia.

Susanto Djaja, President Director of PT Metrodata Electronics Tbk, added, “Metrodata will celebrate our 50th anniversary in 2025. It is our aspiration and commitment to celebrate another 50 years of success. We have been very successful in leading digital transformation adoption and business in Indonesia. Cybersecurity is becoming necessity rather than auxiliary. The joint venture with FPT opens new possibilities, accelerates, and solidifies Metrodata’s leadership in driving Indonesia's AI transformation.”

Driving AI Adoption to Expedite Indonesia’s Leadership in Southeast Asia’s Digital Economy

The IMF predicts that "AI will affect almost 40% of jobs worldwide, replacing some and complementing others.” On a positive note, Oliver Wyman estimates that "Generative AI could add up to 20% to global GDP by 2030 and save 300 billion work hours annually." The Indonesian market is adopting AI technology at a positive rate, with many enterprise customers recognizing how to leverage AI for competitive advantage. The next challenge is to help these companies and others adopt AI for a broader range of use cases. This presents a significant opportunity for FMI to provide consulting services and AI SaaS solutions, enabling cost-effective and timely AI adoption to help businesses differentiate themselves.

About PT FPT Metrodata Indonesia

To start, PT FPT Metrodata Indonesia (“FMI”) will focus on Cybersecurity-as-a-Service. Some of its offerings include Security Operations Center (SOC) as a Service, Security Managed Services, Security Professional Services, Security Advisory & Consulting, Security Monitoring & Incident Detection, Threat Intelligence, and Digital Forensics.

The Cybersecurity-as-a-Service business has been conducted over the past few years by one of Metrodata's subsidiaries, prior to undergoing a spin-off into a joint venture (FMI). The formation of this new entity aims to combine the strength of Metrodata Group in tapping a wide market reach with FPT IS's cybersecurity expertise. The integration of both is expected to drive FMI's growth and services, delivering satisfaction to its corporate customer.

As part of this joint venture, FMI will build the next- generation SOC Command Center. This will allow the company not only to consolidate monitoring services across various types of customers Security Information and Event Management (SIEM) but also to expand and scale operations to mid-sized enterprises. Due to the recent surge in cybersecurity incidents and the enforcement of Indonesia's Personal Data Protection (PDP) law, there is a growing demand for cybersecurity monitoring services. FMI plans to develop and launch a new product offering specifically designed to cater to Indonesia’s mid-market within 12 months. By leveraging FPT's EagleEye technology, FMI aims to enhance cost optimization in managed service operations.

Both FPT and Metrodata are committed to increasing their further investment as new business opportunities arise and additional capital is required. Metrodata holds a 60% share, while FPT owns 40%. To ensure technological leadership in the market, FMI's Chief of Technology will be appointed from FPT’s team.

Metrodata Website Press Release : https://www.metrodata.co.id/metrodata-dan-fpt-luncurkan-joint-venture-untuk-memimpin-transformasi-keamanan-siber-dan-ai-di-indonesia-id

Press Coverages of the event

Journey Toward the Completion of Our Joint Venture

Grand Launching: September 23 2024

The event was attended by Mr. Ta Van Thong - Ambassador Extraordinary and Plenipotentiary of Vietnam to Indonesia, Mr. Pham The Cuong - Commercial Counselor of Vietnam in Indonesia, along with the leadership teams from Metrodata, FPT IS, and FPT Indonesia.

Metrodata Board of Commissioners and Board of Directors Visit FPT Headquarters in Hanoi: July 30-31, 2024

The state visit of Indonesian President Joko Widodo to Vietnam: January 11-13, 2024

FPT IS and Metrodata announced a strategic partnership focused on digital transformation powered by Cloud, Data, and AI. This event took place during the state visit of Indonesian President Joko Widodo to Vietnam from January 11-13, 2024. During a high-level meeting, President Widodo urged major Vietnamese enterprises like FPT to further invest in Indonesia, particularly in the technology sector.

The collaboration between FPT IS and Metrodata—two leading technology firms from Vietnam and Indonesia—reinforces the critical role of IT enterprises in supporting governments to drive digital transformation effectively, while also contributing significantly to the strong and long-term cooperation between the two nations in the future.

About PT Metrodata Electronics Tbk

PT Metrodata Electronics Tbk ("Metrodata"), a public company listed on the Indonesia Stock Exchange since 1990 (IDX: MTDL), is a leading provider of solutions and consulting services, as well as distribution of Information and Communication Technology (ICT) and Digital products and services in Indonesia in partnership with world-class ICT companies. The Company currently has a main business, namely the Digital Distribution Business (Providing World-Class ICT Hardware and Software) which handles the distribution business to dealers and ICT solution companies including running an e-commerce business. Its distribution network is in more than 330 cities in Indonesia and has more than 6,000 channel partners with more than 100 world-class IT product and service brands. Another main business is the Digital Solutions and Consulting Business (Digital Solution Provider to Help Companies Achieve Digital Transformation) which provides complete ICT solutions based on Metrodata's 8 Digital Solution Pillars, consisting of Cloud Services, Data & AI, Hybrid IT Infrastructure, Cybersecurity, Business Application, Digital Business Platform, Consulting & Advisory Services, and Managed Services to support digital business transformation.

About FPT Corporation

FPT Corporation is a global technology and IT services provider headquartered in Vietnam. With significant investments in R&D, FPT offers a comprehensive range of digital transformation services and green transformation solutions, including AI, IoT, cloud computing, and cybersecurity. FPT is recognized for its commitment to innovation and its strategic partnerships with leading technology companies worldwide. FPT IS Company Limited (“FPT”) is a subsidiary of FPT Corporation.

For further information, please contact:

Randy Kartadinata Corporate Secretary Phone: (62-21) 29345 888

www.metrodata.co.id

Indah Margaret Theresia Silitonga

Public Relations & Marketing Communication Phone: (62-21) 29345 888

Email: [email protected]