Indonesia ICT Market Size (2024 - 2029)

Indonesia ICT Market Analysis

The Indonesia ICT Market size is estimated at USD 45.20 billion in 2024, and is expected to reach USD 67.56 billion by 2029, growing at a CAGR of 8.20% during the forecast period (2024-2029).

• Due to its developing ICT infrastructure, Indonesia is expected to become more prepared for the digital era and is projected to be one of the most promising ICT markets in Southeast Asia.
• The market's growth can be attributed to the development of fixed and mobile network infrastructure in the country, in line with the growth of digitalization strategies by businesses to offer online platform-based services. These strategies are fueling the demand for ICT services, including data services, in the enterprises and consumer segments in Indonesia.
• The growth of cloud computing services and cloud-based SaaS adoptions and the emergence of AI and digital data monetization in the enterprises in the country are supporting the demand for high-speed and low-latency telecommunication services. For instance, in April 2024, Nvidia and Indonesia's telco firm PT Indosat Ooredoo Hutchison announced their plan to build an artificial intelligence center in Central Java in 2024 with an investment of USD 200 million, showing the market demand for digital technologies in the country. This initiative is expected to create demand for internet services in Indonesia and support market growth.
• However, Indonesia's tech market is witnessing a need for more skilled human resources. According to a World Bank Report, the nation's technology graduates frequently fall short of the industry norm, and there will be a shortage of 9 million ICT professionals between 2015 and 2030. Also, internet and technology businesses require 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 as it is the 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 its operations and objectives. The government announced its plans to facilitate cloud computing through further regulation because it recognizes the significance of cloud migration in the nation's transition to a digital economy.
• Indonesia is anticipated to lead Asia-Pacific in IT spending over the next four years, backed by a noteworthy shift toward cloud-related facilities as the COVID-19 pandemic forced resident businesses to digitalize their operations. Since the start of the pandemic, the Internet of Things improved the commercial landscape in Indonesia. The pandemic elevated the demand for cloud services in Indonesia because of the mobility restrictions that caused companies to accommodate a remote workforce and meet the flourishing online market.

Indonesia ICT Industry Segmentation

Information and communications technology, or ICT, is a broader term for information technology (IT). It refers to all communication technologies, such as wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services, which enable users to store, access, transmit, retrieve, and manipulate information in digital form.

The Indonesian ICT market is segmented by type (hardware, software, IT services, and telecommunication services), size of enterprise (small and medium enterprises and large enterprises), and industry vertical (BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.