In this age of a digitalized and interconnected world, the Internet of Things (IoT) has emerged as a technological advancement that is affecting many industries, and just like the rest of the world, Indonesia has been influenced by its transformative force. With an estimated 135 million
, the impacts of IoT resonate in various aspects of life in Indonesia - from fostering
, revolutionizing industries, and smart agriculture to enhancing daily routines through smart homes and wearables. Following the government’s ambition to push IoT as a catalyst for Industry 4.0 and the ongoing development of 5G networks across the nation, IoT adoption in Indonesia is expected to grow continuously in the coming years.
The presence of IoT in the everyday lives of Indonesians
The surge in smart home and smart wearable adoption in Indonesia has reshaped how many people interact with technology. By 2027,
Indonesia’s smart home market revenue is projected to exceed 780 million U.S. dollars, with the
home entertainment segment at the forefront of this wave. On the other hand, the rising
usage of wearable tech, primarily used by Indonesian users for fitness activity monitoring, indicates an increasing commitment to a healthier lifestyle.
Popular brands such as Samsung, Xiaomi, and Apple are gaining the most awareness in the country. Furthermore, Indonesia ranked among the ten leading
countries in the Asia-Pacific region with the highest usage of fitness-tracking wristwear, reflecting how IoT is seamlessly integrating into the smart living lifestyle of Indonesians.
Expanding connectivity and government initiatives
The advancement of network and analytics technologies like 5G and artificial intelligence (AI) have allowed the IoT to become more seamless and efficient. However, while IoT adoption is rising,
Indonesia’s AI readiness index score in the tech sector indicated a relatively low readiness. Moreover, the country’s 5G connectivity remains limited. Although significant steps have been taken by Indonesia’s leading telecommunications companies like
Telkom and
Indosat Ooredoo Hutchison, spectrum availability is considered the key challenge to expediting 5G development in the country. As part of supporting initiatives, the government implemented the Palapa Ring project to enable an extensive network through undersea and land cables. It is expected to deliver a larger network capacity across a vast area of the archipelago, including its most outlying regions. Indonesia’s Ministry of Communication and Informatics has also been promoting IoT through programs like the Indonesia Smart Solutions Summit 2023, positioning IoT as a cornerstone in achieving Indonesia’s vision of Industry 4.0.
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