China-based IT server tests Indonesian market

China-based information technology company, Inspur Group Co Ltd, officially announced its entrance into the Indonesian market on Wednesday, saying that it is reviewing the possibility of establishing a production facility in the country.

Inspur, a provider of server hardware as well as mass storage and cloud computing solutions, also revealed that they had partnered with domestic IT distributorship, PT TREND Communications International, to explore the Indonesian market.

Werner A. Noz, president and CEO of TREND, said that Inspur's entrance marked the entry of a Chinese server and solutions company into the Indonesian market, long dominated by Western enterprises.

"The IT industry in China has developed so much that they are now going overseas," he said.

He said that both companies had formed InspurTrend, a joint venture company which would oversee business in Indonesia.

He added that the local arm had signed an agreement with PT Len Industry, an Indonesian state-owned company in the industrial electronics sector, to study the feasibility of establishing a server hardware factory.

Zhang Dong, vice president of Inspur, said that establishing a factory would be "very important" in the company's strategy of expanding into the Indonesian market. "We are thinking of manufacturing a local brand together," he told The Jakarta Post.

In Southeast Asia, Inspur has already expanded to Thailand, Singapore and Malaysia.