Top Ten Predictions of Digital Transformation and Technologies for 2019 and Beyond in Indonesia

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IDC announced today its top ten technology predictions for 2019 and beyond at the IDC Indonesia FutureScape event held at Shangri-La Hotel, Jakarta. The event highlighted the digital technologies and trends that will impact the overall digital economy of Indonesia, predicting that by 2022, more than 61% of the country GDP will be digitalized, with growth in every industry driven by digitally enhance offerings, operations, and relationship.

IDC believes that the digitalized economy will lead to an intense competition especially when the digital disruptors are heavily penetrating into the Indonesian market. In the past year, IDC has witnessed a continuous growth in digital innovation and initiatives from the local enterprises to compete and thrive in the digital transformation (DX) landscape. The 3rd platform technologies such as Cloud, Big Data and Analytic, Social and Mobility; and innovation accelerators such as Artificial Intelligence, Security and Internet of Things, are becoming the key enablers in driving multiplied innovation in DX for enterprises in Indonesia.

The Head of Operations for IDC Indonesia, Mevira Munindra, said " Digitalization is not confined to just one part of the enterprise, nevertheless, it is transforming major aspects of enterprises' offerings, operations, and relationships. 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 organization because IT and business leaders have started to acknowledge more of the digitalization’s benefits in the corporate strategy.”

“The race to innovate, accelerate and reinvent the future of enterprises has begun. In order to lead in the competitive DX economy, enterprises must be agile, adaptable and cognizant 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.” said Sudev Bangah, Managing Director, IDC ASEAN.

IDC estimated that ICT Spending in Indonesia will reach IDR 465 Trillion in 2019. IDC revealed the key trends and technologies for 2019 and beyond that business leaders need to look and consider in the decision-making process and digital ecosystem.

1. #1 Digitalized Economy: By 2022, more than 61% of Indonesia GDP will be digitalized, 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. #2 Digital-Native IT: By 2022, 50% of all IT spending will be on 3rd Platform technologies, as over 50% of Indonesian enterprises build “digital-native” IT environments to thrive in the digital economy.
3. #3 Expand to the Edge: By 2022, over 15% of Indonesian organization’s cloud deployments in Indonesia will include edge computing, and 10% of endpoint devices and system will execute AI algorithms.
4. #4 AppDev Revolution: By 2022, 40% of all new apps will be feature microservices architectures that improve the ability to design, debug, update, and leverage third-party code; 15% of all production apps will be cloud-native.
5. #5 New Developer Class: By 2024, a new class of professional developers producing code without custom scripting will expand the developer population by 15%, accelerating digital transformation.
6. #6 Digital Innovation Explosion: From 2018 to 2023 — with new tools/platforms, more developers, agile methods, and lots of code reuse — 5 million new logical apps will be created.
7. #7 Growth Through Specialization: By 2022, 20% of public cloud computing will be based on non-x86 processors (including quantum); by 2022, organizations will spend more on vertical SaaS apps than horizontal apps.
8. #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% of Indonesian enterprises will use conversational speech tech for customer engagement.
9. #9 Expanding/Scaling Trust: By 2022, 10% of servers will encrypt data at rest and in motion, over 10% of security alerts will be handled by AI-powered automation, and about 2 million people will have blockchain-based digital identities.
10. #10 Consolidation vs. Multicloud: By 2022, the top 4 cloud "megaplatforms" will host 60% of IaaS/PaaS deployments, but by 2024, 40% of Indonesian organizations will mitigate lock-in through multicloud or hybrid technologies and tools.

About IDC FutureScapes

IDC FutureScapes are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC's FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within the typical 3-year business planning cycle.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers.