In today’s digitalized and interconnected world, the Internet of Things (IoT) has emerged as a technological advancement impacting many industries around the world, including in Indonesia. With an estimated 13 million
, the influence of IoT is found in various aspects of life in Indonesia - from fostering
, 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 2028,
Indonesia’s smart home market revenue is projected to exceed 870 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 integrating into the smart living lifestyle of Indonesians.
Expanding connectivity and government initiatives
The development 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. However, with the consistently rising adoption of IoT and Indoneisa’s young and tech-savvy population, there remains a promising future for the IoT market in the country.
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