The digital economy of one of the most dynamic and fast-growing economies in Southeast Asia, Indonesia, is expected to account for 61 per cent of the country’s GDP by 2022.
That's according to IDC, which released its top 10 predictions for the archipelago’s digital transformation journey in 2019 and beyond.
“Digitalisation is not confined to just one part of the enterprise, nevertheless, it is transforming major aspects of enterprises' offerings, operations, and relationships,” said Mevira Munindra, head of operations at IDC Indonesia. “These new technologies are changing paradigms for individuals, businesses, industries, economies, and governments.
“We see local enterprises continue to become more competitive in driving and accelerating DX in their organisation because IT and business leaders have started to acknowledge more of the digitalisation’s benefits in the corporate strategy.”
Furthermore, the digitalised economy will feed into and heat up competition across the country, especially when the digital disruptors are heavily penetrating into the Indonesian market, stated IDC.
Indonesia has seen continuous growth over the past year in digital innovation and initiatives from the local enterprises to compete and thrive in the digital transformation landscape.
The third platform technologies such as cloud, big data and analytic, social and mobility; and innovation accelerators such as artificial intelligence, security and the Internet of Things, are becoming the key enablers in driving multiplied innovation for enterprises nationwide.
“The race to innovate, accelerate and reinvent the future of enterprises has begun,” said Sudev Bangah, managing director of ASEAN at IDC. "In order to lead in the competitive DX economy, enterprises must be agile, adaptable and cognisant to market and customers trends, business models and technologies that are emerging in the market.
“New technologies should be adopted as business benefits become more obvious and clearer. This will enable business leaders to achieve their business goals in a competitive digital ecosystem."
IDC has also estimated that ICT spending in Indonesia will reach IDR 465 trillion (US$33.2 billion) in 2019.
According to IDC, the top 10 trends and technologies for 2019 and beyond that business leaders need to look and consider in the decision-making process and digital ecosystem are:
#1 Digitalised economy - By 2022, more than 61 per cent of Indonesia GDP will be digitalised, with growth in every industry driven by digitally enhance offerings, operations, and relationship, driving US$78 billion in IT-related spending from 2019 through 2022.
#2 Digital-native IT - By 2022, 50 per cent of all IT spending will be on third platform technologies, as over 50 per cent of Indonesian enterprises build “digital-native” IT environments to thrive in the digital economy.
#3 Expand to the edge - By 2022, over 15 per cent of Indonesian organisation’s cloud deployments in Indonesia will include edge computing, and 10 per cent of endpoint devices and system will execute AI algorithms.
#4 AppDev revolution - By 2022, 40 per cent of all new apps will be feature microservices architectures that improve the ability to design, debug, update, and leverage third-party code; 15 per cent of all production apps will be cloud-native.
#5 New developer class - By 2024, a new class of professional developers producing code without custom scripting will expand the developer population by 15 per cent, accelerating digital transformation.
#6 Digital innovation explosion - From 2018 to 2023 - with new tools/platforms, more developers, agile methods, and lots of code reuse - five million new logical apps will be created.
#7 Growth through specialisation - By 2022, 20 per cent of public cloud computing will be based on non-x86 processors (including quantum); by 2022, organisations will spend more on vertical SaaS apps than horizontal apps.
#8 AI is the new UI - By 2024, AI-enabled user interfaces and process automation will replace one-tenth of today's screen-based apps; by 2022, 10 per cent of Indonesian enterprises will use conversational speech tech for customer engagement.
#9 Expanding/scaling trust - By 2022, 10 per cent of servers will encrypt data at rest and in motion, over 10 per cent of security alerts will be handled by AI-powered automation, and about two million people will have blockchain-based digital identities.
#10 Consolidation vs. multi-cloud - By 2022, the top four cloud "mega-platforms" will host 60 per cent of IaaS/PaaS deployments, but by 2024, 40 per cent of Indonesian organisations will mitigate lock-in through multi-cloud or hybrid technologies and tools.