SCG, a leading business conglomerate in ASEAN, held Investment Forum 2018 with the theme #DigitalPassion: Transformations that Change You. At this forum, SCG introduced AddVentures, as its investment arm to expand businesses into the digital technology business. Moreover, SCG also exhibited efforts in digital innovations in many aspects of business, especially opportunities to support potential startups which are fast growing and foster the growth for the industry 4.0 era.
This year's theme of Investment Forum emphasizes the importance of digital transformations for business sustainable growth. According to IDC – Indonesia’s largest carrier neutral data center, by 2021, digital transformation will add an estimated USD1.16 trillion to Asia Pacific’s GDP and increase the growth rate by 0.8% annually. Indonesia is predicted to become the largest digital economy in Southeast Asia with market valuation worth US$ 130 Billion in 2020. By 2021, at least 40% of Indonesia GDP will be digitalized with growth in every industry driven by digitally-enhanced offerings, operations and relationships. Technology is the key to future industrial growth.
“SCG is always developing and adapting itself to evolutions and trends for more than 100 years and will continue to grow in the future in order to provide higher value to customers and partners. This embodies our promise, "Passion for Better" which is the foundation in every part of our business operations. The industry 4.0 era is in sight and is increasingly important to the growth of ASEAN region and technology is the key that can drive businesses to grow and develop in this era. To foster the growth, we are increasingly focusing on adopting technology throughout the company's processes while developing investment arm into the digital technology business,” said Mr. Nantapong Chantrakul – Country Director of SCG Indonesia.
SCG expands its investment through one of its subsidiaries “AddVentures”. This corporate venture capital of SCG has launched in June 2017 and has been providing3 ways of collaborations with startups such as venture capital fund, ecosystem partnership, and direct investment. By this year, there are 11 startups in Southeast Asia that have been collaborated and be a part of AddVentures by SCG. Apart from ASEAN, the company also invests in worldwide scale such as in Silicon Valley, Tel Aviv, and China.
“We believe that digital and technology is the future of business. AddVentures by SCG is strategically designed to enable & support startups and entrepreneurs in the region to grow. In line with Indonesia government’s aim to become ‘The Digital Energy of Asia’, we open for collaborations with Indonesian digital startups where we can together develop by utilizing SCG’s networks, expertise, and resources,” said Joshua Pas, Ph.D., Managing Director and Investment Committee of AddVentures by SCG.
Specifically for SCG during the last 3 years, we have been emphasizing our focus on digital transformation within 5 main areas, namely Marketplace for Building Materials, Payment platform for B2B E-Commerce, logistics platform, contractor matching platform, and last but not least business and manufacturing process automation. All these aspects of digital transformation are expected to enhance the competitiveness of our 3 main business units in Indonesia which are Cement-Building Material, Packaging, and Petrol-Chemical. With digital technology, we can now deliver higher values to our customers and partners. Moreover, we also genuinely believe that digitalization is key to the future of sustainable development of SCG operation in Indonesia.