Indonesia ICT Market Size

Indonesia ICT Market Analysis

The Indonesian ICT Market is expected to register a CAGR of 8.2% for the next five years. The country would become more prepared for the digital era due to the increased use of ICT infrastructure. ICT growth in Indonesia is regarded as the start of a more optimistic future, and Indonesia would be one of the most promising ICT markets in South East Asia.

• The digital economy in Indonesia is projected to boost the GDP by USD150 billion by 2025. The Indonesian government is carrying out significant infrastructure development to reach the goal. The government has started several national initiatives as part of the digital transformation, including the 100 Smart City Movement, e-smart IKM, and Go Digital Vision 2020.
• The Indonesian Broadband Plan (IBP), an operational policy document to develop the Indonesian broadband sector to enhance the welfare of citizens, has been put into practice by the Indonesian government as a framework for several projects for the ICT industry to grow with the technologies.
• However, Indonesia's tech market is witnessing a need for more skilled human resources. According to a World Bank Report, technology graduates of the nation frequently fall short of the industry norm, and there would be a shortage of 9 million ICT professionals in the period between 2015 and 2030. Also, internet and technology business needs more and better facilities in terms of quantity and quality. There is now a gap in Indonesia's infrastructure for both internet and energy.
• According to the chief economist of the Economist Intelligence Unit, Indonesia is a desirable location for investments in digital technology due to the size of its largest market in Southeast Asia. Many digital powerhouses are constructing data centers in the country due to the potential of cloud business. As a result, cloud computing would offer a wide range of advantages that are consistent with their operations and objectives. The government has announced a plan to facilitate adoption through further regulation development because it recognizes the significance of cloud migration in the nation's journey to develop the digital economy.
• Indonesia is anticipated to lead the Asia-Pacific in IT spending over the next four years, backed by a significant shift toward cloud-related services as the COVID-19 pandemic forced local businesses to digitalize their operations. Since the start of the COVID-19 epidemic, the Internet of Things has significantly improved the commercial landscape in Indonesia. The COVID-19 pandemic has raised the demand for cloud services in Indonesia owing to the mobility restrictions that have caused companies to accommodate a remote workforce and meet rising online demand.