Indonesia’s ongoing digital transformation got a significant boost with a major partnership.
The Indonesia Investment Authority (INA) and investment firm Granite Asia have announced a strategic partnership to make targeted investments worth up to $1.2 billion.
Such investments will have a strong focus on domestic businesses or companies with deep connections to Indonesia, either via established operations or by introducing technologies that are intended to benefit the local market in the long term.
Ridha Wirakusumah, CEO of INA, said: “Engaging in partnership with Granite Asia, a prominent investor with a distinguished 24-year track record at the forefront of technology investing, aligns with our strategic sector focus in digitalization and digital infrastructure.”
The partnership is aimed at meeting the needs of tech-driven companies that might require more “flexible, customized capital solutions,” according to a MarketTech APAC report, as well as businesses at different stages of growth.
Digital ID
Thales VP for Asia Nicolas Bouverot suggests in an opinion piece written for the Jakarta Globe that digital IDs backed by biometrics are a key tool for meeting those needs. Digital ID is not only part of Indonesia’s efforts to clamp down on cybercrime, but also to improve access to bank accounts, healthcare, and financial services. But investment is necessary to make digital ID work in the country.
“In support of its digital ID initiative, Indonesia is working hard in improving the digital connectivity across the archipelago,” Bouverot writes. “For instance, when Indonesia’s SATRIA-1 came online in early 2024, the satellite brought high-speed internet to over 145,000 locations that were previously unlinked to any existing satellite or terrestrial infrastructure. Aside from bridging the digital divide, internet access is critical to the success of Indonesia’s digital identity ecosystem.”
Digital access
The terrestrial internet infrastructure is getting an upgrade, too. Indonesia’s PT Asianet Media Teknologi has launched its new Fiber To The Home (FTTH) product Unifiber, which is based on fiber optic technology.
Asianet is a supporter of the government’s Digital Indonesia 2045 initiative and is a major driver of the country’s digital infrastructure development as it operates a broadband network in 36 major cities.
Delivering online connectivity to remote areas of the country, which spreads across multiple large islands, is an ongoing challenge for the country’s internet service providers (ISPs). “We focus on empowering ISPs to improve overall digital access,” said Darrin Webb, who is on Asianet’s Board of Commissioners.
Prakash Ranjalkar, president director of Asianet, said: “As technology continues to advance, Indonesia must build digital infrastructure that is able to adapt quickly. Unifiber’s FTTH network not only meets current demands, but is also designed to meet future needs.”
Smart cities
President Prabowo aims to transform Indonesia into a high-income country by 2045, while the finance minister Sri Mulyani has said six to eight percent economic growth is required annually in order to meet the ambitious target.
Writing in Modern Diplomacy, an expert in digital business set out seven points that could underpin Indonesia’s move towards a “smart city model.”
This would include prioritizing inclusive economic growth, local innovation, building resilience against natural disasters, and setting out specific regulations surrounding smart city implementation, among others.
“The government must also empower its citizens through massive digital literacy campaigns that are simple and engaging,” writes Tuhu Nugraha. “A gamification approach could be an effective alternative, making learning fun and accessible on popular platforms like TikTok and WhatsApp,” he continued.
In August, Asia-Pacific-focused advisory company YCP published a white paper that explored Indonesia’s digitalization push. The white paper – “Can Indonesia Achieve ‘100 Smart Cities’ by 2045?” – identified the challenges unique to the sprawling country as well as demonstrating how two pioneer cities, in Jakarta and Bandung, have much to learn from. The white paper can be found here.
Last month, PT NEC Indonesia opened the “NEC amuse hub” which is designed to showcase NEC’s technologies for Smart City, Smart Transportation Systems, Multi-modal Biometric Recognition, and Cybersecurity, among others.
Via live demonstrations the amuse hub is supposed to show the public and industry how digital innovations such as AI, IoT, or cybersecurity are applied. The NEC amuse hub can be found at the Biomedical Campus within the Digital Hub at BSD City, which lies within Greater Jakarta.
Article Topics
biometrics | digital ID | digital inclusion | Indonesia | NEC | smart cities | Thales Digital Identity and Security
