Indonesia Smart Cities Market 2029: Size, Share & Growth Forecast Report

Industryresearch

Jul 29, 2025 - 12:57

Industry Key Highlights

According to TechSci Research report, “Indonesia Smart Cities Market - By Region, Competition, Forecast and Opportunities 2019-2029”, Indonesia Smart Cities Market was valued at USD 1.48 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 15.84% through 2029.. With smart infrastructure development and sustainable urban planning at the heart of national and local policy agendas, Indonesia is strategically poised to become a regional leader in smart city evolution.

One of the strongest catalysts of this market is the proactive stance of the Indonesian government. National programs such as the Indonesia Smart City Program are providing cities with strategic blueprints, technical guidance, and financial support to integrate advanced technologies into everyday governance. These initiatives not only accelerate digital infrastructure development but also ensure inclusive urban transformation.

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Market Drivers

Governmental Support and Strategic Frameworks

Indonesia’s government is spearheading the smart city movement through targeted policies and financial backing. The national smart city blueprint is helping cities align with technological roadmaps, encouraging integrated systems that promote efficiency and sustainability. These frameworks facilitate faster project approvals, improved inter-departmental collaboration, and optimized public services.

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Rapid Urbanization

With a rapidly growing urban population, cities such as Jakarta, Surabaya, Bandung, and Yogyakarta are under immense pressure to modernize infrastructure and manage resources efficiently. The resulting demand for intelligent solutions—spanning from traffic optimization to waste reduction—is acting as a key market enabler.

Emerging Trends

Smart Waste Management Takes the Spotlight

The waste management segment is projected to dominate the smart utilities space in Indonesia. As cities generate massive quantities of waste, traditional collection systems are proving inadequate. Emerging solutions include:

IoT-Enabled Bins: These intelligent containers notify waste management operators when they are full, ensuring timely collection and reducing operational costs.
Route Optimization Software: Using GPS and real-time data, municipal fleets are optimizing collection routes, minimizing fuel use, and enhancing worker productivity.
Recycling and Waste-to-Energy Solutions: Municipalities are investing in technologies that not only process waste but convert it into energy or reusable materials, addressing both ecological and energy needs.

Key market players in the Indonesia Smart Cities Market are:-