KPMG accelerates economic growth, business transformation in Indonesia
KPMG Siddharta Advisory (KPMG), a leading professional services firm, announced today a significant investment of IDR 150bn (US$9.8m) over the next five years to drive economic growth, scale business transformation, and enable regional collaboration in Indonesia. The investment will fuel comprehensive initiatives that empower Indonesian businesses to optimise operations, embrace digitalisation, and unlock new growth opportunities. The announcement was made at the opening of KPMG’s new office at Menara Astra, which also celebrated the long-standing partnership between KPMG Siddharta Advisory and KPMG in Singapore in driving regional business potential.
The decision to invest is fuelled by Indonesia’s thriving market, which presents a multitude of deal opportunities from thriving multinational corporations (MNCs), the transformation of small and medium-sized enterprises (SMEs) into larger corporates, the emergence of innovative startups, rising foreign direct investment (FDI), and strong government support.
Mr. Irwan Djaja, chief executive officer of KPMG Siddharta Advisory expressed the significance of the investment, stating, “Our substantial investment of IDR 150bn over the next five years showcases our unwavering confidence in Indonesia’s economic potential and reaffirms KPMG’s global standing. With this funding, we aim to create 300 new high-skilled positions in critical domains such as business transformation, security engineering, data science, sustainability, and climate change. Our goal is to expand our workforce and capabilities, equipping our clients with unparalleled expertise to confidently navigate complex business challenges. We sincerely thank our clients as well for their unwavering trust and support. Their partnership has allowed us to collaborate closely, fostering innovation and propelling all of us to new heights within the industry.”
To support Indonesian businesses in their expansion, mergers, and acquisitions ventures, KPMG will provide valuable knowledge, diversification strategies, and scalable approaches driven by cost-effectiveness and innovation. Key areas of focus for KPMG’s investment include cybersecurity, data solutions for business transformation and IT enablement, and regulatory technology (regtech) for compliance. Please see Annex for factsheet on KPMG Siddharta Advisory.
Mr. Ong Pang Thye, managing partner, KPMG in Singapore & board member of KPMG International, emphasised the benefits of the partnership between the two KPMG firms, stating, “The collaboration between KPMG firms in accelerating business transformation knowledge exchange, capacity building, and co-creating solutions across borders will be crucial in driving resilience in Southeast Asia. This partnership provides large foreign corporations looking to invest in sectors such as transportation, energy, or telecommunications with the opportunity to tap into KPMG’s deep-rooted local market knowledge, while also benefiting from KPMG’s regional and global capabilities. Both KPMG firms currently work closely together, with Singapore exporting expertise and solutions to Indonesia to help businesses gain holistic perspectives and efficiently solve complex issues.”
Singapore, as the largest recipient of foreign direct investment coming into ASEAN for the past decade, has been an excellent partner for Indonesia’s economic growth. In 2022, Singapore became the largest foreign direct investor in Indonesia, with investments reaching US$13.3bn[1], a notable increase of 29% from the previous year.
KPMG’s investment in Indonesia will leverage its global network, extensive expertise, and successful business transformation case studies to empower Indonesian businesses of all sizes. By sharing best practices and providing strategic guidance, KPMG aims to enhance the competitiveness of organisations and enable them to effectively navigate the evolving business landscape.
Accelerating Indonesia’s Green Transition
To address the decarbonisation needs by businesses in Southeast Asia, the ASEAN Decarbonisation Hub was set up by KPMG in Singapore in March 2023. As the largest economy in Southeast Asia, Indonesia’s green transition is expected to create strong economic opportunities. Hence, Indonesia is spearheading the Asian Development Bank’s Energy Transition Mechanism (ETM), a critical enabler for phasing out coal-fired power plants and just transition to cleaner energy sources. KPMG’s ASEAN Decarbonisation Hub is extensively involved in the ETM and other similar path-finder projects in the region.
The ASEAN Decarbonisation Hub adopts a collaborative “hub-and-spoke” approach, working closely with governments and companies across ASEAN countries to enable the operationalisation of decarbonisation strategies. By prioritising energy efficiency and transitioning to renewable energy sources, businesses can significantly reduce their carbon footprint while gaining regulatory agility. The Hub also facilitates training programmes and fosters climate-focused partnerships throughout supply chains, enabling companies to collectively reduce the carbon footprint of their final products. Leveraging data and cutting-edge technology, the Hub assists companies in tracking consumption patterns, detecting emissions trends, and showcasing their progress in decarbonisation endeavours, building trust with stakeholders. The Hub facilitates project origination, structuring, financing, and implementation to support businesses on their decarbonisation journey across three primary sectors of energy, transport and real estate.
Supporting Indonesian Businesses in their Digital Transformation Journeys
Recognising the multifaceted challenges encountered by Indonesian businesses on their digital transformation journeys, KPMG is also looking for its investment to fund comprehensive support for business strategies. This includes addressing crucial areas such as ESG strategies, regulatory compliance, risk management, and fortified cybersecurity measures. Leveraging the power of KPMG Global’s proprietary data-driven solutions, KPMG will offer advanced technologies such as machine learning, natural language processing, blockchain, and AI to support businesses in navigating the complex regulatory landscape (regtech).
Through strategic alliances with major technology platforms worldwide, KPMG will also accelerate innovation responsibly and reliably, ensuring clients benefit from state-of-the-art solutions. The firm is looking to seamlessly integrate these initiatives into Indonesia to develop specialised, tailored solutions that bolster clients’ competitive advantage and drive profitability, all while upholding the highest standards of ethics and security.
[1] Data from – https://data.aseanstats.org/indicator/FDI.AMS.TOT.INF
