LG CNS Forms Joint Venture with Indonesia's Sinar Mas Group to Strengthen Local DX Business

LG CNS is launching local data center and cloud businesses in Indonesia in partnership with the Sinar Mas Group.

LG CNS announced on the 28th that it has signed an investment agreement to establish a joint venture with Indonesia's Sinar Mas.

Hyun Shin-kyun, CEO of LG CNS (left), and Frankie Usman Wijaya, Chairman of Sinar Mas, signing a joint venture agreement
[Photo by LG CNS]

The joint venture will promote businesses targeting Indonesian corporate and public customers, including ▲data center consulting, construction, and operation ▲cloud migration. LG CNS will transfer its accumulated technical expertise and business capabilities in data center and cloud businesses to the joint venture, while Sinar Mas will focus on discovering and securing business opportunities within Indonesia.

Founded in 1938, Sinar Mas is one of Indonesia's largest conglomerates operating in seven industries: ▲energy/infrastructure ▲telecommunications/technology ▲finance ▲real estate development ▲pulp/paper ▲agriculture/food ▲healthcare.

According to global market research firm Gartner, Indonesia's IT services market is expected to grow from approximately KRW 4.2 trillion in 2023 at an average annual rate of 23%, reaching about KRW 9.4 trillion by 2027. The joint venture between the two companies plans to accelerate its entry into Indonesia's IT services market, focusing on data center and cloud businesses as well as smart cities and financial IT.

LG CNS has secured numerous references in Indonesia's ▲smart city ▲public ▲infrastructure sectors. Since December 2022, it has been participating in the 'Smart Service Concept Design' for Nusantara, Indonesia's new administrative capital. This project envisions smart services integrating digital transformation (DX) technologies such as artificial intelligence (AI), data, cloud, and digital twins in Nusantara. In 2020, LG CNS won a project to build Indonesia's national tax administration system, and in 2019, it carried out the Jakarta metropolitan light rail transit equipment project.

Hyun Shin-kyun, CEO of LG CNS, said, "Based on LG CNS's DX technology capabilities, we will further expand Indonesia's DX business area through strategic cooperation with Sinar Mas."