Indonesia is one of the most important emerging economies in Asia at present. The Asian Development Bank projects its growth to be at 5.2 percent this year. The country’s own central bank expects growth at similar levels at 5.09 percent. Reasons attributed to this fast-paced expansion are several. Significantly for
Indonesia is one of the most important emerging economies in Asia at present. The Asian Development Bank projects its growth to be at 5.2 percent this year. The country's own central bank expects growth at similar levels at 5.09 percent. Reasons attributed to this fast-paced expansion are several.
Significantly for the security industry, this growth reflects across some key sectors. For instance, the country's construction market is one of the biggest in Asia. According to AECOM, in the medium term up to 2020, Indonesia will have the fastest growing construction market in the continent.
Within the electronic security market too, expectations are high. According to 6Wresearch, Indonesia's video surveillance market is projected to reach US$203.14 million by 2022.
According to King Hartono Hamidjaja, Country Sales General Manager at Robert Bosch, strong investment and public infrastructure drive will pave way for an accommodative monetary policy and this will help bolster investor and end-user confidence, which in turn will act as one of the major drivers of the Indonesian security market.
Others suggest that several aspects that are driving the global market are exerting influence in the Indonesian market as well.
“Massive commoditization of electronics in general, which is making acquiring technology more affordable,” Denny Tansil, Country Sales Leader, Honeywell Security and Fire. “Proliferation of the adoption of the Internet, which began more than 10 years ago and the speed of Internet connectivity improving vastly as more people upload and download personal content. Consumer electronics led by smart phones that are making computer technology hardware smaller, and at the same time improving the user experience significantly; this has implications to industrial companies as we now develop products that are as intuitive and easy to use.”
As mentioned earlier, infrastructure remains a major force of development. Ivan Tjahjadi, ASEAN Country Manager at Axis Communications, pointed out that the Indonesian Government's focus on building up infrastructure in order to improve supply chain capabilities within the country is starting to translate into specific actions on the ground.
“Over the next couple of years, we expect this to be a key growth vertical when it comes to security and surveillance,” Tjahjadi noted. “What is more interesting is the appreciation shown by various involved parties in the solutions we have on offer involving vehicle license plate recognition and people-counting. This shows a mature appreciation of the need to harness technology to derive desired outcomes by the project owners.”
Doris Hiwakari, Sales Manager Indonesia for EcoBuilding Division at Pelco by Schneider Electric, said that security awareness among people are on the rise in the country. Major factors that are driving the market include increased crime rate, increased awareness about safety levels, possibilities of forensic analysis and crime prevention.
Yohanes Edo Pribadi, CEO of Epri Total Integrasi, agreed that efforts from the government are making a strong impact.
“Indonesia's market started to see the needs of security system, now the government and the private sector are looking to invest in surveillance system that are integrated with everything,” Pribadi said. “The government plans to install and upgrade their surveillance systems that are connected with everyone. The city will have traffic surveillance systems which every citizen can connect and interact. Jakarta for example is planning to install around thousands of new video surveillance cameras around the city within this year, and the governor wants to develop smart system that integrate with anything. Foreign investment also mentioned by Indonesian's government, and said that they are welcome to have foreign investment, like ERP system that will start to develop in Jakarta this year, they are looking for partners that are willing to work together to develop ERP system, surveillance system, in Jakarta especially.”