Indonesia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in indonesia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Information and Telecommunications Technology
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Overview

Table: Import and Exports ICT Sector, Unit: USD millions

 

2020

2021

2022

2023

2024

2025 (est)

Total Exports

5,167

6,489

6,978

6,536

6,107

6,300

Total Imports

11,508

13,666

14,250

13,426

15,169

15,927

Import from the U.S. 

210

173

213

244

424

500

Trade Surplus/Deficit

(1,192)

(1,142)

(1,444)

(1,388)

(1,057)

(950)

Exchange Rate

14,582

14,308

14,850

15,237

15,855

N/A

Source: Indonesian Central Bureau of Statistics, Global Trade Atlas. Average exchange rate of Indonesian rupiahs to U.S. dollars from the World Bank.
 

Indonesia’s ICT sector

Indonesia’s ICT sector continues to experience robust growth, driven by increased digital adoption, infrastructure development, and significant foreign investments. The ICT market reached an estimated USD 43.8 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 14.6%, reaching USD 164.1 billion by 2033.

The IT services segment, including IT outsourcing, cloud computing, and data center services, is a major contributor to this growth. IT services revenue is expected to reach USD 6.14 billion by 2025, with IT outsourcing remaining a dominant component.

Indonesia remains one of the most mobile-centric markets globally, with over 355 million mobile cellular subscriptions, making it the third-largest cellular market after China and India. The country’s 4G subscriber base exceeded 270 million by early 2025, and 5G adoption is accelerating, particularly in urban centers and industrial zones.

The telecommunications market is valued at approximately USD 13.4 billion in 2025, with steady growth anticipated beyond 2027. The market is dominated by three major mobile network operators: Telkomsel, Indosat Ooredoo Hutchison (IOH), and XLSmart. State-owned Telkomsel continues to lead in mobile, fixed voice, and fixed broadband segments.

Indonesia’s data center market is expanding rapidly, fueled by increasing demand for cloud services, colocation, and managed service solutions. The market is projected to reach USD 3.79 billion in investments by 2030, growing at a CAGR of 7.99% from 2024. Jakarta remains the primary hub, but cities like Batam are emerging as significant locations due to strategic advantages and government incentives. According to Structure Research, the Jakarta data center market is projected to generate USD 499 million in revenue by 2025, with a five-year compound annual growth rate (CAGR) of 11%. Demand is forecast to climb sharply, with an expected uptake of 54.6 MW, driven by cloud adoption, digital transformation initiatives, and increasing demand for local interconnection infrastructure.

Indonesia’s first National Data Center (PDN) in Cikarang is set to begin operations in June 2025 and it has completed the handover process and is now undergoing security assessment by The National Cyber and Crypto Agency (BSSN). The PDN aims to consolidate government data from 2,700 existing centers to improve efficiency, enhance e-government services, and support data driven decisions. This PDN is built with support from the French government, and it will feature advanced infrastructure. It includes 25,000 processor cores, 200 terabits of memory, and 40 petabytes of storage. The facility meets Ties 4 global standards for security and uninterrupted operations.

Leading Sub-sectors

Key growth areas in Indonesia’s ICT sector include:

  • Cloud Computing and Data Centers: Driven by digital transformation initiatives and increased demand for scalable IT solutions.
  • Telecommunications Infrastructure: Expansion of 4G and 5G networks to enhance connectivity.
  • Artificial Intelligence (AI) and Internet of Things (IoT): Adoption across various industries, including manufacturing, logistics, and healthcare.
  • Cybersecurity Solutions: Growing need for robust security measures amid increasing digitalization.
  • E-Government Services: Implementation of digital platforms for public services.

Opportunities

Indonesia’s digital infrastructure development is attracting substantial foreign direct investment. Notable initiatives include:

  • Palapa Ring Project: A 35,000-kilometer fiber optic network providing high-speed internet access nationwide.
  • SATRIA-1 Satellite: Launched in 2023 to deliver broadband internet to remote regions, with a capacity of 150 Gbps.
  • Significant U.S. investment is underway to support cloud infrastructure development in Indonesia.
  • U.S. companies are also expanding AI-related capabilities, including infrastructure and workforce training.

These developments present significant opportunities for U.S. companies specializing in cloud services, data center operations, telecommunications equipment, and digital solutions.

Resources

  • Ministry of Communication and Digital Affairs (KOMDIGI) KOMDIGI  
  • Indonesia Cloud & Datacenter Convention 2025: 
  • Smart IoT Indonesia 2026
  • Artificial Intelligence Innovation Summit 2025
  • Indonesia Internet Expo & Summit 2025

For additional information and market guidance, please contact Commercial Specialist Yulie Tanuwidjaja at Yulie.Tanuwidjaja@trade.gov