Indonesia Digital Transformation Market Size

Indonesia Digital Transformation Market Analysis

The Indonesia Digital Transformation Market size is estimated at USD 20.40 billion in 2024, and is expected to reach USD 49.57 billion by 2029, growing at a CAGR of 19.44% during the forecast period (2024-2029).

• With the introduction of Industry 4.0 in the manufacturing sector, numerous factories are embracing digital technology to improve, automate, and upgrade the whole process. Industry 4.0 technology, such as robotization, is already commonplace in many enterprises.
• Rapid technological advancement is expected to be accompanied by strong economic expansion. 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, driving the demand for the studied market in the country.
• For instance, Indonesia's digital economy is on a rapid growth trajectory, bolstered by the widespread adoption of digital technology and the prominence of platforms like Tokopedia and GoJek. To realize its vision for future cities, comprising "Decent Cities" (comfortable, liveable, and safe), "Greener Cities" (resilient to climate change and disasters), and "Smarter Cities," Indonesia initiated the "Smart City" vision spanning from 2015 to 2045.
• Furthermore, the Ministry of Communication and Informatics in Indonesia unveiled the "Digital Indonesia 2021-2024" strategy, focusing on digital infrastructure, governance, economy, and society. This blueprint outlines Indonesia's policy objectives, implementation strategies, and timelines for its digital transformation, with a key emphasis on ensuring a more balanced distribution of the digital economy across the nation's regions.
• Indonesia's Ministry of Communication and Informatics (MCI) introduced the "Roadmap Indonesia Digital 2021-2024," designed to propel the nation's digital evolution. The roadmap is structured to facilitate a more even economic landscape, leveraging technology, digital connectivity, and innovation.
• However, the Indonesian digital transformation market is witnessing a demand 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 will be a shortage of 9 million ICT professionals in the period between 2015 and 2030. In addition, internet and technology business needs more and better facilities in terms of quantity and quality. There is a gap in Indonesia's infrastructure for both internet and energy.