Market Trends of Indonesia ICT Industry
This section covers the major market trends shaping the Indonesia ICT Market according to our research experts:
Moving Towards Digital Golden Era
- Indonesia will reach its peak in the digital economy in the next couple of years. The pandemic acceleration has caused the digital industry to develop quickly during the last two years. Not only did the number of people using the internet dramatically rise, but so did societal knowledge of how to use the digital industry as an economic engine even more.
- The Ministry of Communication and Informatics has created a Strategy for Digital Indonesia 2021-2024. Digital Infrastructure, digital governance, digital economy, and digital society are the four main focuses of this blueprint. Indonesia's policy goals, implementation plan, and timeline for digital transformation are described in this roadmap. Also, another goal is a more equitable allocation of the digital economy across the regions.
- Indonesia's Ministry of Communication and Informatics (MCI) launched the Roadmap Indonesia Digital 2021-2024 to promote the country's digital transformation. The plan aimed to offer the framework and steps needed to attain an equitable level of economic development based on technological advancement, digital connection, and innovation.
- Indonesia's digital economy is expanding rapidly, in large part due to the rapid adoption of digital technology and well-known online marketplaces like Tokopedia and GoJek. To enable the three stages of the cities of the future-Decent Cities (comfortable, liveable, and safe), Greener Cities (resilient to climate change and disasters), and Smarter Cities-which are competitive and technology-based-the Indonesian government launched the Smart City vision Indonesia 2015-2045.
- According to the KEMKOMINFO research last year, Indonesia's digital literacy index score grew from 3.46 in 2020 to 3.49. Overall, digital literacy and culture have grown. Encouragingly, the country's digital culture increased from 3.55 in 2020 to 3.9 in the last year, and digital skills increased from 3.34 in 2020 to 3.44 in the previous year.
Understand The Key Trends Shaping This Market
Download Sample
Emerging Technologies to Bolster the Economy
- Rapid technological advancement tends are expected to be accompanied by strong economic expansion. In fact, according to the Ministry of Finance, adopting new technologies may boost Indonesia's economy by as much as USD 2.8 trillion by 2040. The use of technology, particularly digital, robotics, and automation, is growing in the country and has a significant influence on many industries, including manufacturing, energy, and housing, to mention a few.
- Regarding leveraging the IoT, Indonesia is among the countries far ahead of others. IoT hugely influences healthcare spending, industrial productivity, and corporate operating expenses. IoT applications in industries, including manufacturing, agriculture, and natural resources, which account for 50% of Indonesia's GDP, would have the greatest economic impact.
- Smart homes and smartphones are the main drivers of IoT growth in Indonesia. The use of smart gadgets rises dramatically every year, thanks to smart homes. Every residence would likely have at least five devices to ensure proper operation. The IoT is getting better faster than the number of people using smartphones.
- While this is happening, the ecosystem of physical IoT devices, which includes cars, home appliances, factory robots, and other internet-connected gadgets like sensors, is poised to revolutionize a variety of facets of our lives, from transportation to healthcare. Meanwhile, professionals skilled in AI and machine learning are in high demand in the country, and that need is rising quickly. A wide range of industries, including banking, e-commerce, medicines, melanoma detection, space exploration, and translation, use this cutting-edge technology.
- Significant investments in 5G and IoT would soon change the connectivity model in Indonesia. By altering the way they function, 5G is expected to have an impact on many industries. For instance, it would advance immersive services like mixed and augmented reality and streaming and gaming services. According to Ericsson's research, five million smartphone users in Indonesia might choose 5G services in the first two years after commercial networks go live.
- According to the Open Signal report, the 5G network in Indonesia had an average download speed of 69.3 Mbps and an average upload speed of 19.2 Mbps as of January this year. In Indonesia, peak download speeds for 5G users might reach 192.9 Mbps.
