Indonesia Smart Cities Market Research Report 2023

Indonesia Smart Cities Market Synopsis

Indonesia's Smart Cities are Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

The development of smart cities revolves around the utilization of cutting-edge technologies and data analytics to optimize urban systems. Key components include the implementation of the Internet of Things (IoT) infrastructure, which involves the deployment of connected devices and sensors to gather real-time data.

• This data is then analyzed to provide valuable insights that inform decision-making by city officials. Smart mobility solutions play a vital role in improving transportation networks, easing traffic congestion, and promoting eco-friendly transit options. E-governance platforms are adopted to streamline administrative processes and facilitate seamless citizen-government interactions.
• Sustainability initiatives are emphasized, including energy-efficient buildings, renewable energy integration, waste management, and environmental conservation. Moreover, citizen engagement is fostered through digital platforms, allowing residents to actively participate in shaping urban policies and providing feedback to authorities.
• One of the notable examples of smart city development in Indonesia is the "Jakarta Smart City" initiative. As the capital and most populous city in the country, Jakarta faces numerous urban challenges such as traffic congestion, waste management, and environmental pollution. To tackle these issues, the Jakarta Smart City program leverages technology and data to improve various urban services. Real-time traffic data is collected through IoT sensors to optimize transportation routes and manage traffic flow efficiently.
• Waste management is enhanced by implementing smart waste bins that alert authorities when they need to be emptied, reducing unnecessary waste collection trips. Moreover, the program employs digital platforms and mobile applications to engage citizens, allowing them to access information about city services, report issues, and participate in decision-making processes. These efforts have aimed to transform Jakarta into a more sustainable, efficient, and citizen-centric smart city.

Top Key Players:

"PT Aplikanusa Lintasarta (Indonesia), PT Telkom (Telekomunikasi Indonesia Tbk) (Indonesia), PT XL Axiata Tbk (Indonesia), Siemens (Germany), Schneider Electric (France), Philips (Netherlands), Huawei Tech Investment (China), PT Waskita Karya (Indonesia), PT KAI Commuter Jabodetabek (Indonesia), PT Indosat Ooredoo (Indonesia), PT Link Net Tbk (First Media) (Indonesia), PT Surya Semesta Internusa (Indonesia), Ace Hardware Tbk (US), PT Sinar Mas Land (Indonesia), PT Cipta Kridatama (Indonesia), SICE (Spain), PT Cyberindo Aditama (CBN) (Indonesia), PT Sampoerna Telekomunikasi Indonesia (STI) (Indonesia), PT Pelayaran Tempuran Emas Tbk (TEMAS) (Indonesia), PT Bangun Cipta Kontraktor (BCK) (Indonesia), and Other Major Players."

Indonesia Smart Cities Market Trend Analysis

Increasing Sustainable Development Goals (SDGs)

• The emphasis on achieving the Sustainable Development Goals (SDG) can be seen as the driving force behind Indonesia's smart city initiatives. The Sustainable Development Goals set by the United Nations are a set of 17 global goals that aim to address various social, economic, and environmental challenges to achieve a more sustainable and just world by 2030.
• Smart cities by their very nature prioritize sustainability in various aspects such as energy use, waste management, and urban planning. The Sustainable Development Goals encourage cities to adopt sustainable practices, which makes smart city solutions an attractive option for achieving these goals. Many of the Sustainable Development Goals focus on reducing greenhouse gas emissions and combating climate change.
• Smart city technologies can improve the provision of public services and make them more accessible and efficient for citizens. This is in line with SDG 3 (good health and well-being), SDG 4 (quality education), and SDG 6 (clean water and sanitation), among others. Smart cities rely on data and technology for decision-making and management.

Growing Cultural and Economic Diversity

• Indonesia's rich cultural diversity creates a unique environment for innovation. Smart city projects that take this diversity into account can use local insights, traditions, and practices to design solutions that better resonate with residents. By combining cultural aspects, smart city initiatives can promote the acceptance and adoption of technology-based services.
• Different regions of Indonesia have their own economic and social challenges. Taking diversity into account allows smart city projects to tailor solutions to meet the specific needs of different communities. For example, rural areas may require different infrastructure and services compared to urban centers, and cultural factors may influence user preferences and expectations.
• A diverse economy creates opportunities for local entrepreneurs and companies to offer innovative products and services in the smart city ecosystem. Supporting local businesses can boost economic growth and job creation, contributing to a thriving smart city economy.
• Smart city technologies can be used to enhance the cultural tourism experience. By preserving and promoting cultural heritage through digital platforms, smart cities can attract both domestic and international tourists and boost local economies.

The data provided indicates the total number of smart home users in Indonesia in 2022, segmented by different categories. The highest number of users falls under "Home Entertainment" with 5.29 million users, followed by "Security" with 4.74 million users and "Comfort & Lighting" with 4.45 million users. On the other hand, the categories with relatively lower adoption rates are "Control & Connectivity" with 3.77 million users, "Smart Appliances" with 2.89 million users, and "Energy management" with 2.81 million users.

The increasing number of smart home users in Indonesia reflects a broader trend of smart city development in the country. The growth of the smart home market is intertwined with the evolution of Indonesia's urban landscape, technological progress, supportive government policies, and a growing awareness of the benefits of smart technologies.

Indonesia Smart Cities Market Segment Analysis

Smart Cities market is segmented into the Solution and Service, Component, Level, and End-user. By Solution and Service, the Smart Healthcare segment is Anticipated to Dominate the Market Over the Forecast Period.

• Smart healthcare is the dominant segment in Indonesia's smart city market for several good reasons. As Indonesia's population is aging, the number of chronic diseases is increasing, so smart health technologies are essential to managing diseases such as diabetes, heart disease, and cancer, and improving patients' quality of life.
• There is a growing demand for preventive care in Indonesia, and citizens are increasingly appreciating the availability of telehealth and chronic disease treatment services enabled by smart health solutions. Third, the Indonesian government is committed to improving the quality of healthcare and making smart healthcare technologies an integral part of its strategy to improve healthcare efficiency and effectiveness.
• Indonesia's smart health initiatives include developing a national electronic health record (EHR) system to facilitate the seamless sharing of patient data, promoting telehealth to ensure access to healthcare across the country, and deploying mobile devices to store advanced health data. valuable patients. health information and personal remarks. The benefits of smart healthcare are numerous.

Indonesia Analysis of Indonesia Smart Cities Market

• The growing population and rapid urbanization of the city brought several challenges such as traffic congestion, air pollution, and waste management. In response, Jakarta has actively invested in smart city technologies to address these issues and improve the overall quality of life for residents.
• One of Jakarta's most significant smart city projects is the introduction of smart traffic solutions. The city has tried to develop a comprehensive and integrated traffic system that includes the use of real-time traffic data, intelligent traffic lights, and intelligent traffic systems. These measures aim to reduce traffic congestion and make the city's public transport networks more efficient. Another focus area is smart water management. Jakarta has problems with water supply and flooding, especially during the rainy season. The city used technology to monitor water levels, improve water distribution systems, and implement flood monitoring and early warning systems.
• Jakarta is actively adopting smart forms of government, such as e-government platforms and digital citizen engagement tools. These technologies enable seamless communication between the government and its citizens, improving the transparency and accessibility of public services.

COVID-19 Impact Analysis on the Indonesia Smart Cities Market

• The COVID-19 pandemic had several implications for the development of smart cities in Indonesia. One of the primary effects was a temporary slowdown in the implementation of various smart city projects. With the government and private sector focusing on addressing the immediate public health crisis and managing the economic impact of the pandemic, some smart city initiatives experienced delays or redirection of resources.
• As priorities shifted to combat the health crisis, there was an increased demand for smart healthcare solutions. Telemedicine, remote patient monitoring, and health data analytics became crucial in managing the pandemic and providing healthcare services while minimizing physical contact.
• The pandemic also accelerated the adoption of digital technologies across different sectors, including e-governance and remote work. This highlighted the importance of digital connectivity and digital infrastructure in smart cities, fostering a greater emphasis on digital transformation.
• The economic uncertainties brought about by the pandemic posed challenges in terms of funding and investment for smart city projects. Budget constraints and reassessment of project timelines were observed as stakeholders navigated the new economic landscape.

Top Key Players Covered in Indonesia Smart Cities Market

• PT Aplikanusa Lintasarta (Indonesia)
• PT Telkom (Telekomunikasi Indonesia Tbk) (Indonesia)
• PT XL Axiata Tbk (Indonesia)
• Siemens (Germany)
• Schneider Electric (France)
• Philips (Netherlands)
• Huawei Tech Investment (China)
• PT Waskita Karya (Indonesia)
• PT KAI Commuter Jabodetabek (Indonesia)
• PT Indosat Ooredoo (Indonesia)
• PT Link Net Tbk (First Media) (Indonesia)
• PT Surya Semesta Internusa (Indonesia)
• Ace Hardware Tbk (US)
• PT Sinar Mas Land (Indonesia)
• PT Cipta Kridatama (Indonesia)
• SICE (Spain)
• PT Cyberindo Aditama (CBN) (Indonesia)
• PT Sampoerna Telekomunikasi Indonesia (STI) (Indonesia)
• PT Pelayaran Tempuran Emas Tbk (TEMAS) (Indonesia)
• PT Bangun Cipta Kontraktor (BCK) (Indonesia), and Other Major Players

Key Industry Developments in the Indonesia Smart Cities Market

In Jan 2023, Lintasarta, an Information and Communication Technology (ICT) total solutions company, launched the newest product Deka Sovereign Cloud in one of Lintasarta’s sub-brands, namely Lintasarta Cloudeka which has received the first Cloud Sovereign certification in Indonesia from VMWare.

In Feb 2023, Gojek, the on-demand service business unit of GoTo Group, Indonesia’s largest digital ecosystem, together with KAI Commuter, officially launched the expansion of GoTransit for passengers in Solo and Jogja. The announcement was made during a ceremony held at Pura Mangkunegaran in Surakarta and was attended by Gojek and KAI Commuter management, the Ministry of Transportation, the Ministry of State-Owned Enterprises, and local governments from Central Java and Surakarta.