Synnex Metrodata Indonesia (SMI, Synnex's JV in Indonesia)'s hit a record high of NT$29 billion, surpassing the US$1 billion mark, and a significant increase of more than 30% compared to 2020. Meanwhile, profit also hit a record high with a substantial annual increase of more than 40%. SMI is optimistic that in the next few years, revenue is expected to create new milestones.
Synnex has been optimistic about the development potential of Indonesia more than ten years ago. In 2011, it established SMI as a joint venture with ME (PT Metrodata Electronics Tbk.), the largest and oldest ICT group in Indonesia, to deeply cultivate the market. A few days ago, the 11-year JV was celebrated, and both parties were satisfied with the outstanding achievements of nearly 5 times the revenues and 10 times the profit since the joint venture. Now, SMI is the largest 3C distributor with a large scale ahead of its peers in Indonesia. In 2021, SMI will not only see significant growth in the existing strengths of laptops and desktops, but also in e-sports, components, mobile phones, cloud and other businesses that have been actively deployed in recent years.
SMI has operating locations in 17 major cities, directly providing services to more than 5,000 various types of channels such as system integrators, value-added merchants, e-commerce, large chain stores, IT & telecom stores. With 25 logistics centers all over the country, covering all major islands in Indonesia and more than 150 cities, it is the only distributor in Indonesia with a complete countrywide arrangement. In recent years, SMI has accelerated its digital transformation and strengthened its ability to use digital tools to expand its business and provide services. This is also one of the main factors for SMI to continue to maintain operation and provide service, and generate substantial growth in revenue and profit even facing of several large-scale lockdown due to the epidemic last year.
According to the statistics of the International Monetary Fund (IMF), Indonesia is the 16th largest economy in the world and the 7th largest economy in terms of purchasing power parity, and its economic growth rate has remained above 5% in the past 10 years. In addition, it is estimated that there are more than 20 million households in Indonesia with disposable income of more than US$12,355. If one household is estimated to have 2 to 3 members, there are 40 to 60 million or 15% to 20% of the high-income population, which is the most consumption power group in Indonesia.
At the same time, Indonesia is also a country that is bold in spending. Consumer spending accounts for 57% of GDP, and the domestic demand market is quite large. Indonesia's population is around 270 million, of which nearly 70% are young adults, with a median age of only around 30 year-old, which has the largest demographic dividend in ASEAN. The young Indonesian consumer group spends more than 9 hours a day on the Internet, loves to try new things and is willing to accept new technologies, which makes the consumption expenditure of Indonesian households on 3C products expected to grow at a compound annual growth rate of 9% by 2024, which is 1.5 to 2 times of GDP's growth. This has created a very favorable operating environment for SMI, which takes the 3C market as its main business.
Looking forward to 2022, SMI has three major development axes, including expanding market share in advantageous fields, continuing to expand new businesses such as mobile phones, e-sports, components, and extending its reach to smart devices, power consumption, AIoT, technical services, management services and other fields. Through active use of digital capabilities to deploy a Management Service Platform (MSP), deepen the cooperative relationship with upstream and downstream customers. Coupled with the favorable conditions of the overall environment, SMI is optimistic that in the next few years, revenue is expected to continue to record highs.