Indonesia’s Internet of Things (IoT) market is experiencing significant growth, driven by both local and global trends. According to recent reports, the IoT sector in Indonesia is set to reach USD 2.15 billion by 2024. The market is expected to grow at an impressive annual rate of 22.87% through 2029, reflecting the increasing adoption of IoT technology across various sectors.

Globally, the IoT ecosystem is expanding rapidly. As of the end of 2024, the number of IoT devices connected worldwide is predicted to reach 18.8 billion, a 13% increase compared to the previous year. This growth is a clear indication of the rising demand for connected devices, smart solutions, and digital transformation worldwide.

In Indonesia, the government and industry players are working together to drive this transformation. One such initiative is the AIoT Smart Solution Initiative 2024, launched by the Ministry of Communication and Information Technology (Kominfo) in collaboration with the Indonesian IoT Association (ASIOTI). This program aims to position Indonesia as a global leader in IoT innovation within the next five years.

Mulyadi, Director of Device Standardization at Kominfo, emphasized the importance of collaboration across all sectors to advance Indonesia’s IoT capabilities. "The involvement of every stakeholder is crucial in fostering the development of Indonesia’s IoT industry," Mulyadi stated. "We aim to ensure that Indonesia’s IoT solutions are competitive on the global stage."

Teguh Prasetya, Chairman of ASIOTI, also highlighted that the rapid digital transformation of both private and public sectors in Indonesia is driving IoT growth. He predicted that Artificial Intelligence (AI), particularly Generative AI (GenAI), will play an increasingly pivotal role in the IoT ecosystem, enhancing the capabilities of connected devices.

In an effort to support the expanding IoT industry, ASIOTI and Kominfo have launched the "Smart Solution Directory" (iotcreation.id/solusi), which features 143 IoT solutions developed by various organizations in Indonesia. The directory serves as an accessible platform for both the public and industry players to explore and utilize IoT solutions available in the country.

The development of IoT solutions in Indonesia is not just a government-driven initiative; private companies are also contributing to the sector's growth. Local tech company Alita Praya Mitra has made strides in creating integrated IoT solutions for several key industries, including healthcare, agriculture, and manufacturing. Amirullah Anwar, Vice President of Pre-Sales Smart Solutions at Alita, explained that partnerships with telecommunications operators have been essential to the company's success in developing comprehensive IoT solutions.

"Collaborating with telecom operators has been a key factor in the development of our IoT solutions," Anwar said. "These partnerships enable us to offer robust and scalable IoT solutions that meet the needs of various industries."

The growing number of IoT solutions in Indonesia presents vast opportunities for innovation and business growth. By integrating AI and IoT technologies, businesses can unlock new efficiencies, improve services, and tap into new markets. The future of IoT in Indonesia looks promising, with both the public and private sectors playing key roles in its expansion.

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