Positive Outlook of Investment in ICT Sector in Indonesia: Ken Research

Ken research announced recent publication on “ICT investment trends in Indonesia; Enterprise ICT spending patterns through to the end of 2017,” which offers insights on the comprehensive overview of the Indonesian economy and ICT industry trends, the report also provides detailed information on ICT spend (hardware, software, IT services, telecommunications, and consulting). It also discusses Application of ICT in technologies such as IoT, cloud computing, business intelligence, and mobility management. Report analyses allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting.

In Asia Pacific region, Indonesia mobile telephone market is performing fairly well with strong hold of major 3 players including Telkomsel, Indosat and Xl Axiata. Almost 95% of mobile subscribers are prepaid subscribers accounting for the growth of telecom industry. However the impact of global economy fluctuations has been seen in Indonesia as well resultant rise in investment risk and uncertain economy changes; whereas, foreign investors have secured the market and showcasing positive investment outlook in ICT domain.

In 2016 it has been noticed that companies in Indonesia are investing in ICT domain across core areas of enterprise ICT expenditure, including hardware, software, and IT services. Additionally major focus has been paved towards SaaS solutions by assigning a large proportion of their budget allocated for cloud computing. Companies in Indonesia are also investing in IoT equipped devices such as audio ID & mobility technologies, real-time location tracking, and network sensors to track the safety and location of their assets and information.

Cloud services has gained momentum in Indonesia and majorly SMEs benefitted using cloud services as showcased by government statistics almost three fourth of the SMEs are yet to adopt cloud services showcasing ample of growth opportunities.

The major challenge faced by Indonesia ICT market is slow internet connection speed which is due to its geographical island structure. The geographical structure creates a challenge for the build-up of cable infrastructure and increase the cost. In 2014, a new plan has been launched by the Indonesia National Development Planning Agency (BAPENNAS) named as Indonesian Broadband Plan (IBP) 2014-2019. This system has the capability to send voice, images and data at one time (triple-play) with a minimum speed of 2Mbps for fixed network and 1Mbps for mobile access.

Topics Covered In the Report