The publicly listed company hopes the expansion will increase its revenue from international markets by 20 to 30 percent next year, backed by the confidence that the company is already familiar with consumer needs in the region.

Currently, international markets were only contributing 5 percent to the firm’s revenue, Anabatic Technologies director Adriansyah said during a presentation on Tuesday.

“For global [expansion], we will collaborate with multinational companies that have business units in ASEAN countries, as well as with local partners,” he said on Tuesday.

Anabatic provides products and services in various countries and regions, including the Philippines, Malaysia, Singapore, Thailand, the Middle East and Africa.

Anabatic offers digital solutions through three business segments, namely cloud and digital platform partner (CDPP), mission critical digital solutions (MCDS) and digitally enriched outsourcing services (DEOS).

The CDPP services include business-to-business (B2B) information technology infrastructure by distributing computer products through physical and online stores. The CDPP segment generates 60 percent of the company’s revenue.

Through the MCDS business line, Anabatic provides IT solutions for banks, multifinance and insurance firms related to cyber security, software assurance and testing, and anything as a service (XaaS). The MCDS segment contributed 25 percent to the company’s revenue.

Anabatic’s DEOS services include outsourcing of business processes related to human resources and information technology services related to business process outsourcing (BPO) solutions. This segment contributed 15 percent to its overall revenue.

In the first nine months of this year, Anabatic recorded Rp 3.73 trillion (US$260 million) in revenue, up 19 percent year-on-year (yoy), supported by growing demand for B2B and customer-to-customer (C2C) IT services.

However, the depreciation of the rupiah has impacted its net profit. Combined with the rise in interest expenses, it caused its net income for the period to decline by 51 percent to Rp 17 billion as of the third quarter.

“This year, we posted foreign exchange losses as a result of high fluctuation in the US dollar. Currently, the company has US dollar debts, and we hope that we can repay all the US dollar debts by the end of this year,” Anabatic independent director Hendra Halim said.

The company declined to reveal its business performance targets for next year. However, it is optimistic that it can accelerate expansion in the domestic and international markets.

The company, listed on the bourse with the ticker code ATIC, allocated around Rp 100 billion for capital expenditure this year to develop its business and plans to set aside a similar amount next year.

“Every year, we allocate capex that will be used for product development and acquisition. About 60 percent of our capex will be used for acquisitions,” Hendra said.

The funds will be sourced from a corporate action in July 2018, when it issued convertible bonds for business expansion.

In an effort to boost business growth, it also plans to improve research and development regarding new products, namely QR payments, artificial intelligence, machine learning, internet of things and blockchain.

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