The document discusses the Internet of Things (IoT) business landscape in Indonesia in 2019. It provides information on how IoT works and key categories of consumer spending. Tech communication, education, and groceries are the top categories for both Indonesian and global consumer living expenditures. The document also outlines IoT competitor landscapes in Indonesia, services provided by global and local players, challenges to adopting IoT in Indonesia, and strategies for companies to enter the Indonesian IoT market.

1. Prepared by:
Spire Research and Consulting
June 2019
INTERNET of Things
BUSINESS LANDSCAPE
2019

2. Internet of Things (IoT)?
A giant network with connected devices. These devices gather and share data about how they are used
and the environment in which they are operated.
Things and sensors Gateway Cloud
AnalyticsUser Interface
Data Data
Data
Data
Wireless
Network
HOW IT WORKS?
SO WHY IT MATTERS?

3. TECH COMMUNICATION
57%
EDUCATION
50%
GROCERIES
46%
VIDEO/MUSIC/INTERNET/
SERVICE
43%
TRAVEL
36%
GROCERIES
44%
TECH COMMUNICATION
44%
EDUCATION
34%
TRAVEL
33%
HEALTHCARE
32%
TOP 5 CATEGORIES
CONSUMERS SPENDING of LIVING EXPENDITURE
INDONESIA GLOBAL
VS
Tech communication: purchasing technology for communication purposes (e.g. phone)
Education: school
Groceries: purchasing daily needs
Video/music/internet service: subscribing entertainment on-demand and internet quota
Travel: travelling for vacation
Healthcare: spending on healthy lifestyle and health insurance
Source: Statista, 2018

4. Global PlayersNational Players
IoTasoneofportfolio
IoTasthemain
portfolio
Indosat
Lintasarta
IOT COMPETITOR LANDSCAPE INDONESIA 2019
The IoT Industry Reality is still new, especially in Indonesia and the players have not found competitors that make IoT products be their
main business platform. Certainty of regulation is believed will affect players to invest in the IoT Industry more intensely in the future
MII
Nokia AWS Microsoft
SAP IBM
XL Axiata
AT&T
Google
Cisco Qualcomm Huawei
Dimension Data
TATA SingTel

5. IOT SERVICES SUMMARY
Global Player
Based on Eclipse Foundation survey to 1.700
B2B IoT users in the world, in 2019
concluded that most of IoT top player (38%)
stated that Security is their main concern
and followed by Connectivity and Data
Collection & Activities to IoT
implementation
Top Global Developer Concern
IoT Global Industry
Predicted that the amount of IoT devices globally will reach 14,2 billion in 2019 and 25 billion in 2021. there are 5 things
that predicted will get big impact on IoT Global industry, such as:
Production
Optimization
Supply chain
management
Asset Tracking and
Management
Experience of
Financial Decision
User Experience
1 2 3 4 5
IoT Global player prioritize “security” as their main concern to develop products
Source: Eclipse Foundation 2019

6. IOT SERVICES SUMMARY
Local Player
IoT service provider companies in Indonesia, create an
association with the name of the Indonesian IoT Association
(ASIoT) as one of the means to support IoT development in
Indonesia. Through ASIoT, IoT companies in Indonesia can
expand the market and increase brand awareness through
various events
Forming Association
IoT challenge in Indonesia
The implementation of IoT technology in Indonesia has not developed rapidly due to several factors, including the
following:
High Cost Security problem
Not in accordance
with the old system
Complicated system
Lack of human
resource
1 2 3 4 5
In Indonesia, the application of IoT technology ranges from
11.8% because many companies feel objected because the
application of IoT requires a very large cost. For this reason, an
association was formed which is expected to bridge IoT player
aspirations to the Indonesian government
IoT Implementation
Meanwhile, Indonesia has 5 challenges to welcoming IoT
BUT NO WORRIES!

7. Built an “appcelerate”
program and digital
lab for Startup
Upgrade 5G to
support IoT
products
Partnership to
provide solution
for Smart city
Integration IoT
product with
cloud technology
Asking for
allowances
regulation to
government
Collaboration to
expand the
market (global &
local)
• Global companies explore local telecommunications companies for the development of 5G networks that are considered capable of
accommodating more connections for IoT (Internet of Things) devices in the Indonesian market.
• Implementation of the “appcelerate” program to accelerate the development of the IoT ecosystem and local and
global competition events for startups
• Conduct a study for the development of the latest IoT product innovations through Digital Economy Lab by
cooperating with campuses and government institutions
• Prepare IoT products that are integrated with the cloud where core visibility and control for IoT
services is done through cloud edges (IoT services through cloud platforms)
• Global and local partnerships players in IoT product development to
support the development of smart cities both solutions for the needs
of cities and industrial zones
• Collaborating with IT product distributor and
aggregator companies to expand marketing to local to
global and global markets to local Indonesia
• Offering IoT Products for white labels (Nokia)
• Negotiating with the government
through IoT associations to facilitate
marketing regulations related to IoT
products (TKDN to SNI)
IOT GO TO MARKET STRATEGY

8. SUMMARY COMPETITOR MARKETING STRATEGY
IoT Media Communication
Social Media Official website Website:
Telecommunication Web,
news, technology
Event:
Colloquium, Forum,
Workshop, Launching event
Debeloping IoT
Laboratory

9. BUSINESS CRITICAL NEEDS PARTNERS

10. Tel: (62 21) 5794 5800
Fax: (62 21) 5794 5808
Wisma 46 Kota BNI,
25th Floor, Unit 07-09
Jalan Jendral Sudirman Kav 1
Jakarta 10220, Indonesia
indonesia.info@spireresearch.com
www.spireresearch.com
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