Industry Report

Industry Report: ICT in Indonesia

By 2025, Indonesia’s digital economy is expected to contribute USD 150 billion to the GDP. To achieve the target, the Indonesian government is currently implementing a massive infrastructure development, the Palapa Ring Project, which will provide 4G network to all Indonesian cities and regencies by 2019. As part of the digital transformation, the government has launched several national programs among others are Go Digital Vision 2020, e-smart IKM and 100 Smart City Movement. These programs aim to develop local startups, support small to medium enterprises (SMEs) as well as to prepare and embrace internet of things (IoT).

The Information Communications Technology (ICT) sector in Indonesia offers vast opportunities for Swiss ICT technology and solutions providers.
The Information Communications Technology (ICT) sector in Indonesia offers vast opportunities for Swiss ICT technology and solutions providers.

The large population with 260 million inhabitants is an attractive market for suppliers of ICT products. Indonesia is widely known as the number one country in the world for the most average time spent on smartphones, hence, it is the fastest growing mobile market in Asia-Pacific. Local companies now are investing in all areas of ICT such as hardware, software and services. In their ICT expenditures, companies are focusing towards software as service (SaaS) solutions and cloud computing. Apart from that, new technologies namely analytics, data center management and managed services are also currently being in demand. As moving towards IoT, the market’s needs also include equipped devices, for example, audio ID, mobility technologies, real time location tracking and network sensors.

Untapped opportunities for Swiss ICT providers

The imported value of automatic data processing machines and their parts as well as telephone sets in 2016 almost reached to USD 6.3 billion. Most of the contributors to Indonesia’s ICT import are from China and the ASEAN neighbors. Indonesia has received foreign investments and witnessed several joint ventures between foreign and local companies. Though Swiss companies’ presence in the market is relatively low, there are still numerous untapped opportunities in the Indonesian market. Nevertheless the position of Swiss ICT suppliers is likely to further improve due to the ongoing positive negotiations on EFTA-Indonesia Comprehensive Economic Partnership Agreement (CEPA). The CEPA would potentially bring trade benefits to existing and other Swiss ICT suppliers in the long term.

The report provides analyses on customers, competitors, and the industry as well as distribution channels are covered. Other information which are also covered are characteristics of the ICT industry, market size and structure, major players, market trends and projections.

 

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