Based on the USA-based research firm, International Data Corporation (IDC), Indonesia is reported as a

country with up to 16% increase of information and communication technology (ICT) spending to IDR 394
trillion (USD 29.5 billion) by 2020, compared to the prediction in 2017, which is IDR 339 trillion (USD 25.4
billion).

The spending on information technology (IT) alone will reach up to IDR 159 trillion (USD11.9 billion) in 2020,
or an increase of 24.2% from the 2017’s prediction of IDR 128 trillion (USD 9.6 billion).

Majority of IT spending in the country goes to devices such as smartphones, PCs, and tablets, that will reach
up to IDR 106 trillion (USD 7.9 billion) by 2020, which is a 15.2% increase from the estimated prediction IDR
92 trillion (USD 6.9 billion) in 2017.

The IT spending in Indonesia is always driven by consumers rather than enterprise. The difference is always
about 57% to 58% for consumer's spending on IT against 42% to 43% for enterprises, simply because the
consumer market is bigger, and people are buying more devices.

However, the growth of IT consumer spending in the next three years will slow down to single digits, with a
compound annual growth rate (CAGR) of 6.96%.

While hardware and devices will still dominate the IT spending in Indonesia, the research firm also sees a
change in behaviors of companies across the country that will make IT services become one of the main
components of economic growth in 2020.

Spending on IT services will increase to 61.1% in 2020 to IDR 29 trillion (USD 2.2 billion) from the estimated
IDR 18 trillion (USD 1.3 billion) in 2017.

Another driver for IT spending in Indonesia is software, thanks to the booming application industry in the
country, as the spending on gadget software will increase to 33% or IDR 12 trillion (USD 896.7 million) in
2020, from the estimated amount IDR 9 trillion (USD 672.5 million) in 2017.

In term of business prospect, the digital market in Indonesia has great potential and will continue to grow
rapidly. The information and communication technology (ICT) spending is expected to experience an
increase of up to 16% by the year 2020, with a majority of IT spending in the country or about reach up to
IDR 106 trillion goes to devices. Therefore, we believe the Company is still prospective in the future.