This document summarizes the Indonesia enterprise ICT market. It finds that enterprise ICT spending in 2017 was estimated at IDR 55 trillion and is expected to grow at a 26% compound annual growth rate driven by digital services and cloud. The largest ICT spending comes from enterprises located in the Java territories, which make up about 80% of the market. Key focus areas for enterprises include connectivity solutions, mobility services, cloud services, and digital transformation initiatives.

1. Indonesia Enterprise ICT Market – 2020
Adolfo & Co

2. Source : Frost & Sullivan, Digital Market Overview: Indonesia
Quantitative survey by consultancy firm
Market Overview
 2017 ICT spending is estimated at IDR 339 Tn, 6% CAGR(2018-2022)
 2017 Enterprise ICT spending is estimated at IDR 55Tn, 26% CAGR) driven by Digital Services & Cloud
 The largest ICT spending are in Java territories (~80%)
+6%
2019
395
2020
422
2021
454
2022
339
55
(16%)
284
(84%)
2018
352
2017
373
Enterprise Rev 55 72 93 117 145 178 +26% CAGR
in USD Bn 3.9 5.1 6.6 8.3 10.3 12.7
Service Revenue in IDR trillions
Data Centres +36%
Digital Service +39%
Cloud +38%
BPO (Outsourcing) +11%
Fixed - Consumer -1%
Wireless - Consumer -1%
Wireless -Business -1%
IT Security +9%
Govt. Cyber Security +9%
Fixed - Business -1%
Segment, +CAGR

3. Indonesian Technology Trends
New Technology for Enterprise
❷ Data Analytic By 2020, 15% of Indonesia Enterprise will generate revenue from
Data Analytic as a Service. Sale of raw data, derived metrics,
insight and recommendations will be more common
❹ Cloud
Services
By 2021, Enterprise services by Cloud will reach US$ 250mio
Leveraging the diversifying cloud environment, 10 % at the edge, 15%
on specialized computing and 30% will be on multi-cloud services
❶ Digital
Transformation
By 2021, 40% of Indonesia economy will be Digitalized !!!
Digital enhanced offering, operations and relationship will grow in
every industry segments.
❺ Blockchain
Technology
At least 10% of Indonesian enterprises will use blockchain services
Usage of blockchain technology will be rise especially in digital trust,
banking application and supply chain organizations
❻ System
Interoperability
Half of Indonesian company will see more than 20% of digital service
interaction via Open API ecosystems Amplifying their digital reach is far
beyond their own customer interactions
❸ Artificial
Intelligence
By 2021, 10% of digital initiatives will be on Artificial Intelligence (AI).
The use of AI and robot will increase in commercial enterprise apps
and customer interaction

4. Segments to
contribute
baseline revenue
growth
Significant
opportunities in
the underserved
market
Corp,
Govt.
Large
Enterprise
Small & Medium
Business
Micro Business (UMKM)
The market can be divided into 4 segments based on revenue potential
Business Segmentation
2 millions
151 – 1,500
11 - 150
25,000
>1,500
25 – 500 Mn
~45 millions
2 - 10
> 500 Mn
24 millions
Cumulative
workforce
1 – 25 Mn
Potential ARPU
Company(IDR)
~150 millions
Number of
Companies
1,000
~9 millions
~6 millions
Employees
per company
100K – 1 Mn

5. Source: Quantitative survey by consultancy firm
* Other segments : Transportation & Logistic, Hotel, Healthcare, Education, Pharmaceutical, Mining,Media
Focus Territories
(Central Java,
East Java)
(Greater Jakarta,
West Java)
(Kalimantan,
Sulawesi)
12%
52%
(Sumatra)
28%
8%
80%
Enterprise focus in Java territories(~80%) with 7 vertical segments forecasted to generate significant revenue
Where are the enterprise territories and segments?
Focus Segment & ICT Market Size
IDR 43 Tn
IDR 9,3 Tn
IDR 9,1 Tn
IDR 7,7 Tn
IDR 2 Tn
19%
10%
8%
9%
0,8%
Property
E-Commerce,
Retail, F&B
Technology
Financial
Manufacture
Others* 25%
45%
ICT Spending
2019 (IDR 93 Tn)
0,4%
2%
Agriculture
Pulp & Paper
IDR 0.7 Tn
IDR 0.3 Tn
IDR 20,9 Tn

6. Key Focus Areas for Enterprise
Connectivity
1
 Mobility
 Fixed Connectivity
 Mobile VPN/MPLS
 Private LTE
 Connectivity VAS
Solutions
2
 Mobility Services
 Cloud Services
 Digital Transformation
 Mobile-Ads
 Mobility Devices
 IoT & M2M Devices
Enterprise ICT Stack Enterprise Focus Areas
Fixed (PBX,
Fiber)
On-Premises
Software
Core IT Services
Server, PC,
Printers,
Peripherals
Mobile Cloud Services
Connectivity VAS
( UC, Call Center,
etc.)
Mobility
Devices
VPN, MPLS Data Centers
Mobility services
(Workforce,M2M,
Security..)
M2M Devices
Private LTE
IoT and Digital
Transformation
Mobile- Ads
Cust. Outreach
Network
Equipment
Connectivity
Platform-SW
& Data Center
Services Hardware
We have looked at the whole Enterprise ICT market and identified 2 key focus areas for Enterprise
ICT
3  Servers
 Networking
 Pheripherals