IoT in Indonesia to be Worth $30 Billion by 20223 min read
According to the Indonesian Minister of Industry Airlangga Hartart, the market share of IoT in Indonesia is growing rapidly. The ministry has predicted that the value of IoT will be worth $30 billion by the year 2022. Imagine, you reach the office on a Monday morning and recall that you have left the geyser switched on in your apartment. It will stay on for the next 10 hours or so before you get back. If only there were a convenient and reliable way to communicate with the appliance and ask it to turn itself off.
Or, maybe you did not recall leaving this appliance turned on, but the geyser communicated with you by sending an alert on your smartphone asking you to take care of this potentially dangerous situation. Feel free to replace this object with your cooking range or electric kettle or anything else. The possibility for objects to be connected to the internet and to one another through the internet is what IoT stands for.
What is IoT
The “Things” in the Internet of Things (IoT) stands for sensors or devices on equipment and/or humans that connected them to each other within a network. This is simply a structural definition of IoT. The more important question to ask is, what can it do?
IoT can increase the efficiency of any system it is applied to. Futuristically speaking, in the most polluted cities of the world, the air quality tends to get worse around a certain time of day. The vehicles could communicate with the spiked AQI stored in a device and issue alerts to commuters to not drive into the city during a particular time.
Also Read: The IoT Landscape in Indonesia
The potential for the growth of IoT in Indonesia
The ministry of industry has predicted that the value of IoT in Indonesia will be worth $30 billion by the year 2022. This predicted value is a sum total of the entire network integrated with platforms, IoT devices, applications, content, gateways, etc.
They are calling it the Industrial Revolution 4.0 in Indonesia. All components that fuel this network are valued independently. The valuation of the compatible content and applications is predicted to reach $13.1 billion, the platform itself has been valued at $11 billion; IoT devices will be worth $3.8 billion and the gateways assisting this network are assumed to touch the $2.7 billion-dollar mark.
The minister further added that there are 5 core technologies instrumental in bringing about an informational revolution in Indonesia that will empower citizens:
- IoT (Internet of Things)
- AI (Artificial Intelligence)
- VR/AR Virtual Reality/ Augmented Reality)
- 3D Printing
- Advanced Robotics
IoT in Indonesia has consciously been prioritized on this list by him. Around 400 million sensor devices have already been installed in the country, according to the Indonesian IoT Forum data. The breakup for the same is as follows:
- Manufacturing Sector – 16%
- Health Sector – 15%
- Insurance Sector – 11%
- Banking and Cyber Security – 10%
- Wholesale – 8%
- Retail – 8%
- Government Sector – 6%
- Logistics and Transportation Industry – 6%
- Agriculture – 4%
- Real Estate – 4%
- Households – 3%
For the improvement of the general IoT infrastructure, the Indonesian government is also in the midst of installing the Palapa Ring – a 36,000-km fiber-optic network. This cutting-edge innovation will provide lightning fast internet speeds across the country. High speed and stable internet with zero downtime is the backbone of IoT.
The Indonesian Ministry of Communications and Informatics further emphasized the pressing need to empower and elevate the country’s human resources. It sees many social applications of IoT that will bring about a positive change in the lives of its citizens.