Indonesian ICT market slated for 16.3% growth through 2028
A key growth driver includes high revenue contributions from cloud computing.
The enterprise information and communication technology (ICT) market in Indonesia is set to expand at a compound annual growth rate (CAGR) of 16.3% between 2023 and 2028, according to a report by GlobalData.
This growth is driven by high revenue contributions from cloud computing, the Internet of Things (IoT), and artificial intelligence (AI), as well as strong demand from key industries such as manufacturing, retail, banking, financial services, and insurance, the report said.
According to GlobalData’s ICT Customer Insight Survey, 92.1% of respondents indicated an increase in their enterprise ICT budgets for 2024 compared to 2023, reflecting strong growth expectations in the sector.
“Positive economic outlook, business growth, and the government’s support for key sectors like manufacturing, technology, e-commerce, and infrastructure projects are especially driving positive investment sentiment among enterprises in Indonesia,” said Pragyan Tarasia, technology analyst at GlobalData.
She also highlighted that ongoing investments in 5G networks and government initiatives to promote digitalisation and advanced technologies—such as AI, IoT, and cloud computing—further enhance the ICT market’s growth potential in the country.
The IT services segment is forecasted to boost Indonesia’s ICT market, with a CAGR of 15.3%, reaching $48.1b in 2028, GlobalData said.
Additionally, the manufacturing sector is projected to remain the largest end-use vertical in the ICT market in terms of revenue contribution. It is estimated to account for 12.5% of total cumulative revenue between 2023 and 2028.
Amongst IT solution areas, IoT will generate the highest revenue during this period, driven by growing demand for advanced sensor technologies and connected systems.
Meanwhile, AI will be the fastest-growing IT segment, with revenue expected to expand at a CAGR of 49.2%, fueled by increasing demand for AI-powered solutions across logistics, human resources, education, cybersecurity, and customer service.
