IDC sees good prospects for ICT growth in Indonesia

By eGov Innovation Editors | Jan 22, 2012

Drawing from research and internal brainstorming sessions among regional and country analysts, IDC sees a lot of promise in the growth of the information and communication technology (ICT) in Indonesia.

Coupled by projection that the country's economic growth will top all other ASEAN countries in 2012, IT spending is also forecast to reach US$12.9 billion by the end of year, for an 18 percent year-on-year (YoY) growth.

"As 2012 dawns, Indonesia will move into a transformative phase where ICT will play a major role in enabling traditional economies and boosting economic growth in the society. The country has to rapidly adjust its ICT infrastructure to accommodate the increasing influx of foreign investments and this will have a positive impact on the overall ICT market,” said Sudev Bangah, Senior Research Manager, IDC Asia-Pacific.

He cautioned, however, that unexpected dips could occur at a given time.
 
The following are top trends that IDC believes will have the biggest commercial impact on the Indonesian ICT market:

1. Stability and growth spur IT spending

ICT budgets from end user organizations are growing in parallel with the economic growth expected in the nation and this leads IDC to be upbeat about the nation’s ICT spending in 2012. Discussions evolving around data centers, managed services, social media, cloud computing and mobility has garnered heavy interest from both local and global organizations. Therefore, IDC believes that Indonesia is the key Southeast Asia market that IT vendors will focus their attention on in the year ahead.

2. Cloud computing

In 2011, IDC found that more than 50 percent of end user organizations in Indonesia were either actively searching or planning to adopt public cloud services within the next 12 to 24 months. This year, IDC anticipates that cumulative efforts from both local and foreign providers will garner more interest in this emerging technology.  

3. Telecommunications spending to continue surging

IDC said it is witnessing a surging demand for network coverage across all major cities in Indonesia. IDC estimates that the end of 2011 brought forth 43 million mobile shipments into Indonesia and this is aggressively driving and heightening the utilization of both voice and data telecommunications services. Fixed data services and broadband are also continuing to grow, driven primarily by residential and business segments.

4. Mobile broadband explodes

Affordable smartphones and USB modem dongles are beginning to be ubiquitous in many cities in Indonesia. The mobile broadband ecosystem is competitive and service providers are forced to offer affordable broadband packages to compete. With the prices of smartphones coming down to around the US$100 mark, and USB dongles being available for an average price of US$25, IDC is witnessing all the makings of a society with a high propensity to adopt mobile broadband.