KPMG Accelerates Economic Growth, Business Transformation, and Regional Collaboration in Indonesia with IDR 150 Billion Investment
- Written by Daily Sun
- Projected to create over 300 new jobs for specialised roles in business transformation such as security engineering and data science as well as sustainability and climate change
JAKARTA, INDONESIA - Media OutReach - 30 August 2023 - KPMG Siddharta Advisory (KPMG), a leading professional services firm, announced today a significant investment of IDR 150 billion (US$9.8 million) 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 150 billion 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$13.3 billion[1], a notable increase of 29 percent 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
ANNEX
KPMG Siddharta Advisory
Factsheet
KPMG Siddharta Advisory is making a substantial investment of IDR 150 billion over the next five years to accelerate economic growth, stimulate business transformation, and foster regional collaboration in Indonesia. This significant commitment will drive comprehensive initiatives designed to empower Indonesian businesses to optimise their operations, embrace digitalisation, and unlock new avenues for growth.
Building upon its state-of-the-art office, inspired by KPMG's successful Singapore office, KPMG Siddharta Advisory aims to revolutionise the business landscape by fostering a sustainable future of work through strategic investments in technology, talent, and decarbonisation efforts.
With this investment, KPMG Siddharta Advisory is poised to be at the forefront of empowering Indonesian organisations to navigate the evolving business landscape with confidence. By leveraging cutting-edge technology, innovative strategies, and global expertise, KPMG Siddharta Advisory will help businesses harness the power of digitalisation and position themselves as leaders in their respective industries.
What's the office move about?
KPMG's office move is part of the firm's ESG commitments to reduce the impact on the environment, contributing the firm-wide goal of reaching net-zero carbon emissions by 2030. Integrating technology into the office design has also created a conducive, collaborative, and a fit-for-future workplace for employees.
How the features of our new office enable our Sustainable Future of Work strategy
| Future-focused workplace | Technology | · A Connected, Conscious, and Collaborative Workspace · Network as a Service (NaaS): We have implemented seamless, wireless Internet in the office, allowing our staff to work at higher speeds, meet up conveniently and collaborate effectively. · Space Booking System: This integrated web and mobile application allows us to optimise the usage of our office spaces efficiently. This innovative technology enables convenient and easy access to office facilities such as desks and meeting rooms through app-enabled applications. · Technology-Enabled Meeting Rooms: Our meeting rooms are equipped with cutting-edge technology, including acoustic doors and soundproofing. These features ensure a conducive and distraction-free environment for productive discussions and presentations. |
| Green initiatives | · Certified Green Mark Platinum building: Our new office at Menara Astra has been given the prestigious Green Mark Platinum certification by Singapore's Building and Construction Authority. This recognition highlights our commitment to environmental sustainability, as the rating system acknowledges projects that adopt enhanced strategies and measures for sustainable living. · Introducing sustainable practices: The new building provides us with three times more space than our current office. To conserve water and energy usage, this new building will also be equipped with energy-efficient and water-saving measures, such as a rainwater harvesting system and a greywater recycling system. By the end of 2023, the new office will also incorporate smart lighting systems, maximising the use of natural lighting and minimising unnecessary energy consumption. · Circularity Practices: We are dedicated to instilling circularity practices within our firm. As part of this commitment, approximately 60 percent of the old workstations from our previous office will be repurposed and used in the new space. Additionally, recycling bins will be strategically placed throughout the premises, encouraging employees to actively participate in waste management and recycling initiatives. |
KPMG's Strategic Investments in Technology, Talent and Decarbonisation
| Pillar | Exhibit | Key messages |
| Technology | Advanced Attack simulation and AI-enabled monitoring | At KPMG Siddharta Advisory, we combine our deep industry knowledge with cutting-edge technologies such as artificial intelligence (AI) to deliver robust cyber defense solutions, safeguarding sensitive information and mitigating impacts on your company's digital infrastructure. Our goal is to protect digital systems by ensuring the security and integrity of your organisation's digital infrastructure. Our team of consultants includes C-suite level expertise across various industries. This depth of knowledge is crucial in helping businesses shape their digital programs and ensure their robustness. With our experienced professionals, you can trust that your digital transformation efforts will be guided by industry leaders who understand the unique challenges and opportunities within your sector. Through the knowledge transfer with other KPMG member firms including Singapore, this allows us to adapt our solutions to the complexities of different markets by tapping on the best minds across the firm. |
| Talent | Talent of the Future | At KPMG Siddharta Advisory, we believe that talent is the cornerstone of success. That's why we are committed to attracting and nurturing the best minds in Indonesia. Here's how we are investing in talent to support your transformation journey: · Creating Job Opportunities: We are proud to announce the creation of more than 300 new jobs in Indonesia. This significant expansion builds upon our current headcount of about 400, which has quadrupled over the past eight years. These new positions will be focused on recruiting security engineers, data scientists, and other talents required for digital transformation and Environmental, Social, and Governance (ESG) initiatives. · Strategic Partnerships for Technical Expertise: Through our partnerships with renowned tech companies such as Microsoft and ServiceNow, we ensure that our staff receives the necessary technical expertise to excel in their roles. We offer training opportunities in critical areas such as cyber risk management, threat intelligence, and operational efficiency. By equipping our team with advanced skills, we can provide you with the highest level of expertise and support. · Global Network Collaboration: As part of the KPMG global network, we have access to a broader network consisting of 143 member firms. This extensive collaboration allows us to tap into global knowledge and skills, developing the best solutions for our clients in Indonesia. With this vast network, we bring a global perspective to address local challenges and drive meaningful results. · Investing in Our People: Our investments in our people are centered around five pillars:
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| Decarbonisation | ASEAN Decarbonisation Hub | KPMG is committed to driving sustainability and supporting Indonesian firms on their Environmental, Social, and Governance (ESG) journey. As part of our global ESG strategy, we have established the ASEAN Decarbonisation Hub, led by KPMG in Singapore. Here's how this initiative contributes to Indonesia's sustainable future: · Scope and Focus: The ASEAN Decarbonisation Hub focuses on three key areas: energy transition, energy efficiency, and transition finance. By addressing these critical aspects, we aim to support Indonesian firms in their efforts to reduce carbon emissions and transition to cleaner energy sources. · Partnerships and Capabilities: The Hub serves as a node of sustainability capability and partnerships across ASEAN. Through collaboration with industry partners and leveraging our expertise, we can develop innovative solutions that drive decarbonisation and support the country's goal of phasing out coal-fired power plants. |
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About KPMG International
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