Indonesia Automation And Control System Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Indonesia Automation And Control System Market Trends and Insights

Flourishing Power-Sector Capacity Additions

Massive generation and grid projects valued at IDR 51 trillion (USD 3.2 billion) are scaling demand for supervisory control and distributed control systems that coordinate renewable and thermal assets. State utility PLN is retrofitting excitation systems and deploying SCADA across hydro and coal plants to stabilize frequency as renewable penetration rises. The July 2024 decision to lower local-content rules below 30% widened the supplier pool and prompted multinationals to partner with Indonesian fabricators to meet sourcing quotas.^{[2]Deloitte Indonesia, “Energy and Resources Regulations Update (KM No.04/July/2024),” deloitte.com} Yokogawa’s water-treatment SCADA in Bali and multiple PLN excitation retrofits in South Kalimantan illustrate the steady pipeline that supports the Indonesia automation and control system market.^{[3]Tender Indonesia, “Proyek Pembangunan Pabrik Sepatu Senilai 220 Juta USD,” tender-indonesia.com}

Evolution of Wireless Sensor Networks and Protocols

5G rollout combined with lower-cost sensors is allowing factories to link conveyors, compressors, and HVAC systems without rewiring. PT Astra Daihatsu Motor cut fan energy use by 20% after connecting PLC-controlled motors to a wireless edge device, saving 122.66 kWh annually and avoiding 10.67 tCO₂ emissions. Manufacturers now stage analytics at the edge for real-time alarms while offloading pattern discovery to cloud dashboards, a configuration well suited to Indonesia’s archipelagic geography.

Domestic Making Indonesia 4.0 Incentives

Tax holidays, import-duty relief, and technology-transfer clauses motivate line builders to embed robotics, vision systems, and AI into priority sectors, including automotive and electronics. The SIINAS portal, mandated under Regulation 38/2018, tracks every automation purchase and its domestic-component ratio, giving policymakers granular insight into adoption gaps.^{[4]Business Indonesia, “SIINAS: Revolutionizing Indonesia's Industrial Sector with a Centralized Data Integration,” business-indonesia.org} Thirteen partnership deals worth IDR 5 trillion (USD 315 million) signed at Hannover Messe 2024 point to sustained momentum.

Mandatory Energy-Efficiency Standards

New minimum-performance standards raise the bar for motor and drive efficiency. Plants that retrofit legacy motors with IE3-grade units and pair them with variable-speed drives can lower kWh per unit output by double digits. Insurance carriers also require certified safety-instrumented systems in high-pressure operations, adding another layer of compliance-driven automation spending.

High Upfront CAPEX for Brown-Field Retrofits

Older cement, steel, and petrochemical complexes must rewire control loops and train operators before installing advanced DCS. PT Rainbow Tubulars Manufacture is investing IDR 300 billion (USD 18.9 million) to modernize seamless pipelines, revealing the cash requirements that deter midsize firms from similar upgrades. Integration surprises between analog I/O and modern Ethernet-based systems often inflate budgets and extend shutdown windows.

Skills Gap in Advanced Automation Engineering

Universities still focus on general electrical engineering, leaving graduates under-exposed to cybersecurity layers, AI inference engines, and safety-integrity-level calculations. Employers fill the gap with expatriate consultants, raising project costs and limiting knowledge transfer. Government scholarships and vendor-run academies have begun to bridge the divide yet demand still outpaces supply.

Segment Analysis

By Product: Multifaceted Demand Anchored by PLCs and Propelled by Robotics

In 2024, PLCs generated 27.06% of revenue, confirming their ubiquity in packaging, material-handling, and batch-process lines. That domination secures a resilient base for the Indonesia automation and control system market size at the plant-floor level. However, Industrial Robotics is set to grow at a 10.11% CAGR through 2030, amplified by new automotive paint shops and electronics surface-mount lines that need micron-level repeatability. SCADA platforms gain steady orders from power utilities interested in distributed asset visualization, while DCS penetrates chemical and F&B plants where recipe integrity is mission-critical. HMI design is shifting toward capacitive touch and mobile mirroring, allowing supervisors to view KPIs from remote stations, an essential feature across Indonesia’s dispersed archipelago.

The safety-system niche is widening as insurers and regulators insist on SIL-3 emergency-shutdown loops, boosting demand for triple-modular-redundant PLCs and flame-scanner arrays. Efficiency mandates are pushing a shift from IE1 to IE3 motors, and the pairing of these units with variable-speed drives slashes energy bills and unlocks data for performance dashboards. Together, these trends underscore how hardware modernization and software orchestration are converging, reinforcing both the scale and the depth of the Indonesia automation and control system market.

Note: Segment shares of all individual segments available upon report purchase

By Component: Hardware Dominates While Services Accelerate

Hardware produced 61.55% of 2024 sales, encompassing controllers, sensors, actuators, and secure switches that underpin every automation architecture. Much of the capital spending in the Indonesia automation and control system market flows first into this stack as line builders outfit new capacities across automotive, EV, and FMCG verticals. Software demand is maturing from basic HMI to advanced analytics, historian integration, and anomaly detection, though it still trails hardware in total receipts.  

Services will expand at a 9.89% CAGR through 2030 because manufacturers are outsourcing system integration, network re-engineering, and predictive-maintenance programs to specialists like PT Dycom Engineering, which reported USD 5.8 million revenue in 2025. Lifecycle contracts that bundle spares, firmware, cybersecurity patching, and operator training are particularly attractive to firms lacking deep in-house engineering benches. As installed bases age, the Indonesia automation and control system market share for service firms is poised to rise, diversifying revenue toward more recurring streams.

By Deployment Mode: Hybrid Architectures Gain Traction

On-premises deployment retained 84.24% revenue in 2024, a reflection of both legacy investments and the imperative to keep latency-sensitive control loops off public networks. Cyber-secure DMZs isolate plant networks from enterprise IT, meeting both production and compliance requirements. Nonetheless, cloud/IIoT-edge implementations are forecast to expand at a 10.77% CAGR, propelled by the cost-benefit of centralized analytics and multi-site benchmarking.  

Edge gateways now preprocess vibration spectra, machine vision frames, and process anomalies before sending compressed insights to hyperscale clouds, lowering bandwidth expense and shortening response times. Vendors are pitching subscription packages that include device management, over-the-air firmware updates, and API connectors for ERP synchronization. The resulting hybrid ecosystems illustrate how the Indonesia automation and control system market balances sovereignty concerns with digital-transformation objectives.

By End-User Industry: Energy Anchors, EV Accelerates

Oil and gas maintained 24.47% of 2024 expenditure, spanning SCADA for onshore wells, DCS for refinery hydrocrackers, and rotating-equipment monitoring across LNG trains. The upstream segment alone commissioned dozens of PLC-based well-pad controls to meet production quotas and enhance safety. Power generation projects, spearheaded by PLN’s grid modernization, constituted the second-largest wallet share, demanding synchronous condensers, excitation upgrades, and renewable integration algorithms.  

EV and battery manufacturing, though smaller in absolute terms, will clock an 11.04% CAGR as cathode, electrolyte, and cell lines spring up around Java industrial parks. Food and beverage processors are meanwhile adding traceability functions mandated by export buyers, elevating MES and vision-inspection uptake. Metals and mining operators are automating mill drives and smelter furnaces to curb energy intensity, while water-utility boards order remote telemetry for sewage treatment plants to meet environmental requirements. These vertical nuances shape solution roadmaps and fuel the long-term diversity of the Indonesian automation and control system market.

Geography Analysis

Java is the epicentre of demand, hosting automotive OEMs in Jakarta, semiconductor back-end fabs in Bandung, and chemical parks in Surabaya that together account for the bulk of the Indonesia automation and control system market size devoted to installed-base upgrades and new greenfield lines. Robust port logistics, skilled labour pools, and policy incentives, including accelerated depreciation for Industry 4.0 assets, reinforce its leadership.  

Sumatra delivers a substantial share of spending through refineries, palm-oil downstream processors, and pulp and paper mills. State-owned Pertamina continues to retrofit SCADA across pipeline networks, while biodiesel plants in Riau adopt batch-reactor control to achieve consistent esterification yields. The coal-rich South Sumatra basin also drives process-automation procurements for washers and loading terminals.  

Kalimantan, Sulawesi, and Papua form the frontier. Kalimantan’s nickel smelters and coal terminals require ruggedized PLC cabinets rated for high humidity and dust. Sulawesi’s cocoa grinders and seafood processors seek cost-effective HMIs and batch controls, while Papua’s mining concessions explore autonomous haulage communications to navigate rugged terrain. As special economic zones and transport corridors mature, these regions will grow their influence on the Indonesia automation and control system market, diversifying geographic revenue streams over the next decade.