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[:en]The Internet of Things (IoT) might be a very salient term in the tech industry. Connected-things is now a reality following the recent digital revolution. A GSMA report stated that China will be a global leader for M2M technology with more than 50 million connections to penetrate the market; a Mckinsey report estimated the global IoT market to potentially have a worth between $3.9 and $11.1 trillion by 2025. The aforementioned statistics foregrounding IoT as an important economic tool is just a couple among many others.

Despite the great benefits that can be brought about by the technology, IoT is still an obscure technical jargon to the public and enterprises across different verticals. The adoption of IoT especially in Southeast Asia — although rapidly gaining traction — is not attaining the desired impact and potential it is set to achieve.

Take, for instance, Indonesia. When Telkom Indonesia came up with a series of public services projects ranging from electronic services (i.e. e-office, e-kelurahan, e-puskesmas) to a mobile-based digital media that can respond to citizens’ complaints in 2014, a huge question was posed: are Indonesians ready to deal with IoT?

Tony Seno Hartono, the National Technology Officer of Microsoft Indonesia, assured that people in Indonesia are definitely competent in developing IoT-based devices, although most of them have yet to be professionally involved in it. “Not so many people have realized the huge potential of IoT,” he added.

Hence, it is important for players in the IoT ecosystem such as telcos and solution providers to work together with the public sector to raise awareness and educate end users on IoT technology. While the IoT industry can build momentum such as creating interoperability and security standards for connected devices and machines, the government can exercise leadership by partnering with the private sector, support the ecosystem via funds and grants, facilitate innovations by developing soft infrastructure, and many others.

In short, here is what government and partners can do to advance the growth of the IoT industry:

  1. 1. CREATE: Roll out a national plan to gain confidence among investors in the IoT venture; establish clear security guidelines to ensure public trust in IoT products;
  2. 2. EDUCATE: Create demand within end users by encouraging usage of IoT in public and private sectors; spur related projects, e.g. smart cities;
  3. 3. INVEST: Establish R&D funds and provide financial support in terms of loans, subsidiaries and grants; invest in IoT talent and infrastructure.

Southeast Asia’s Internet of Things (IoT) and Machine to Machine (M2M) thought leaders will convene at Jakarta next month for the Asia IoT Business Platform to discuss the opportunities and challenges of IoT and M2M in Indonesia and Southeast Asia. The conference is co-hosted by Indonesia’s three leading telcos: TelkomselIndosat, and XL Axiata, with the aim of educating enterprises on the adoption of IoT to grow businesses and drive the market of different sectors.[:]

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As with other Southeast Asian economic tigers such as Thailand and Malaysia, Indonesia has decided to dive into the concept of ‘Smart Nation’, with Makassar being the first Indonesian city to launch a smart city programme. Following the footsteps of Makassar, Jakarta is next in line in realising the vision of a smart city as the authorities unveiled its Jakarta Smart City Project last December.

Indonesia came in 46th on their readiness for digital commerce according to the 2014 study by The Digital Evolution Index. The nation also came in 122nd in internet connection speed. Despite the apparent lack of soft infrastructure, the market potential in Indonesia for ICT is encouraging; evident from its dynamic and digital-minded young population. Jakarta was the world’s most active city on Twitter in 2014, contributing 254 million tweets which makes up 2.4% of the world’s total. The city came in fourth on Facebook activeness.

Apart from being social media-savvy, Indonesia has launched the Palapa Ring Program which seeks to connect the whole archipelago by high-speed fibre optic cable by 2015. The rapid adoption of new technologies such as cloud computing and the rapid growth of e-businesses are optimistic signs of the nation’s move towards a smarter landscape.

Recognising the emergence of Indonesia in the ICT sector, the Asia M2M IoT Business Platform is returning to the city to give solution providers that are targeting enterprise adoption of M2M technologies an ideal platform for knowledge-exchange, collaboration, and expansion together with end-users across different verticals; from transport and logistics, to banking and finance.

In order to further understand the dynamics of the Indonesia market and to find out more about the latest trends and developments of the IoT and M2M opportunities in Indonesia, we spoke to Mr. Jaka Susanta Vice President (M2M) of Telkomsel, the leading telco in Indonesia.

    On the current market potential for M2M and IoT in Indonesia

Current market potential for M2M/IoT in Indonesia is divided into several segments. Agriculture & Environment is valued at 487K; Intelligent Business is valued at 502K; Consumer Electronics is valued at 1.25 million; Utilities at 3.51 million, and Automotive is valued at 13.37 million.

The automotive industry clearly has the biggest potential for IoT technology and M2M.

 


On Indonesian government’s role and their efforts

The government’s primary role when it comes to IoT technology and M2M is to provide public service for citizens; either information or facilities that can revolve around the ideas of a Smart City or Green City which can then be supported by private companies and enterprises. This is essentially for the betterment and comfort of citizens.

 


   On their vision

Telkomsel’s vision is to build and expand on M2M business in Indonesia as well as supporting partners and customers in running their businesses to be more efficient and effective.

 


  On partnerships

Telkomsel M2M business focuses on Automotive, Finance, Utilities, and any other segments to provide solutions for both corporate/enterprise as well as retail market.

Telkomsel

 

Telkomsel is the world’s 6th largest cellular operator by number of subscribers and the market leader in Indonesia’s telecommunication industry that serves more than 131 million subscribers. With 69,000 Base Transceiver Stations (BTS), Telkomsel provides the largest network coverage in Indonesia, reaching almost all of Indonesia’s population. As a pioneer in the development of Indonesia’s mobile telecommunication industry and to enter the advanced stage of mobile broadband services, Telkomsel provides cellular services through GSM Dual Band (900 & 1800), GPRS, Wi-Fi, EDGE, 3G, HSDPA, and HSPA+ networks throughout Indonesia, and is testing Long Term Evolution (LTE) technology.

Telkomsel by Telkom Indonesia is returning as the Platinum Sponsor of Asia IoT Business Platform 2015, which will be holding its 5th edition at Fairmont Jakarta, Indonesia from 25-26 August 2015.

Do not hesitate to click on each of the following links to find out more about sponsorship, exhibition, or speaking opportunities.

We hope to see you in Jakarta in August!