Otto Toto Sugiri, Bill Gates of Indonesia

28 March 2023

Otto Toto Sugiri was born in 1953 in Bandung, Indonesia.

As a teenager he went to Germany to study medicine. However, he soon abandoned his speciality and took a master’s degree in computer engineering, also in Germany. He returned to Indonesia in 1980 to care for his ailing mother. 
He started his career as a software engineer in an oil company before starting his own software development company. Then, he joined his family’s bank. He put together a team and used his development skills to help the bank computerise. The family bank became 1rst in the country to conduct transactions on computers. Otto was quickly promoted. Despite his interest in his mission, Otto did not find himself in corporate spirit, which he finds lacking in meritocracy. 

After six years of experience, Otto left his job to start his own company.

Five of his colleagues followed him and together they founded Sigma, a software company. When they started, they only had enough cash for ten months of operation, but they were all willing to take risk. His experience in banking sector allowed him to find his first client, a bank, in only two months. Thanks to his honesty and transparency, he managed to convince them to buy necessary servers because Sigma did not have enough cash-flow to do it. He also managed to negotiate software copyright to sold it to other banks. From its first year, Sigma became profitable. 

Toto has gathered his partners and discussed about Sigma achievement  for next three years.

All partners spoke out. Otto framed these goals above his desk to determine guideline for each strategic decision. After only three years, each goal was achieved and Sigma grew exponentially. At that time, more than 50 banks in Indonesia were using Sigma’s software. 
Unfortunately, from 1998 onwards, Indonesia went through an unprecedented financial and political crisis. This chaotic period has led to closure of many companies. For their safety, Otto moved his wife and daughter to United States, but returned to Indonesia to continue his business. 
For us, the real entrepreneurs, we do not take loans from banks; we use our innovation to find our capital.
The businessman thought about expanding his business abroad, knowing that no Indonesian company would be able to commit in next two years. He moved his staff and their families to ensure their safety and set up Balicamp, a subsidiary of Sigma focus on software development and customisation for international companies. Company grew to 900 people.

After several years of influence, Otto sold Sigma to Telkom Indonesia group, a telecommunications company for $39bn.

Government, which partially owned the company, aimed to develop the country’s technological infrastructure.
In 2011, Otto decided to co-found another company, PT DCI Indonesia, now the leading data centre provider in Indonesia. The aim is to provide hosting services, data processing, web or application hosting and storage services. 
DCI’s clients include Southeast Asia’s largest e-commerce companies and cloud providers and have built several data centres as a result. In 2014, DCI launched and self-funded a $200M Tier 4 data centre, DCI. He leaved management of this new project to young talent and settled for an advisory role.

In 2021, PT DCI Indonesia raised $10.5M in IPO on Indonesian stock exchange.

That same year, Otto planned to open 15 new buildings. This development is part of Indonesian government’s « Making Indonesia 4.0 » initiative to support and develop the long-term growth of Indonesia’s digital economy.
Since the company’s IPO in 2021, DCI has been serving local and international companies, including 4 global cloud service providers, 7 major e-commerce platforms in Indonesia and Southeast Asia, more than 40 telecom service providers, 100 banking, finance and insurance customers, and more than 68 customers from various sectors. The company supplies more than half of country’s local capacity (52%). It is also largest Tier IV data centre in Southeast Asia.
Otto keeps a low profile and avoids media attention. The entrepreneur spends part of his time mentoring young entrepreneurs at the Founders Institute Jakarta.

« Toto focused less on money and more on how each of his employees could succeed and feel comfortable.»

IN A FEW FIGURES

  • Headquarters in Jakarta, Indonesia 
  • Founded in 2011
  • Sales 2022: $68M
  • Net profit 2022: $24M
  • Market capitalisation: $5bn
  • 104 employees
  • Leader in Indonesia (56% market share)

DATA SECTOR IN SOUTH EAST ASIA

  • Data centre capacity in Southeast Asia expected to grow at a CAGR of 19.4%
  • Growing market since 2020 pandemic
  • Currently dominated by US giants Amazon Web Services, Microsoft and Google Cloud
  • However, chinese giants like Alibaba Cloud, Tencent and Huawei are investing heavily

Otto Toto Sugiri, 69, is the co-founder and CEO of DCI Indonesia, the largest data centre operator in Indonesia.  His fortune is estimated at €2bn

 

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