Indonesia’s Tech-Driven Security Boom: Exploring the Key Innovations Shaping a Fast-Growing Market.

Indonesia stands as a beacon of growth in the global security industry, fueled by ambitious government initiatives, surging private-sector adoption, and a robust economic outlook with GDP growth forecasted between 4.7% (World Bank) and 5.8% (Indonesian government) by 2026. Like many of its Southeast Asian counterparts, Indonesia’s significant infrastructure spending is carving out vast opportunities for the security sector.

A cornerstone of this transformation is the new capital city, Nusantara, located in Borneo/Kalimantan. Originally conceived to alleviate pressure on Jakarta, and despite its recent recalibration to a “political capital” from 2028, Nusantara remains a crucial testbed for cutting-edge security technologies. At its heart lies the now-operational Nusantara Command Centre, the operational core of the city’s “Smart Defense 5.0” security concept. This pioneering mandate involves the deployment of sophisticated cyber-physical solutions, including AI-driven video security, advanced facial recognition, and comprehensive data analytics, all seamlessly integrated into a centralized management platform. This ambitious national project is not just securing Nusantara; it’s setting stringent international compliance and integration standards for future security installations nationwide.

Beyond the flagship Nusantara project, Indonesia’s expansive security market is witnessing a rapid pivot towards advanced technologies, not only for traditional security needs but also for broader operational objectives. This article delves into the most impactful security technology trends currently sweeping across Indonesia.

AI

As elsewhere, Artificial Intelligence (AI) is undeniably the foremost trend in Indonesia’s security landscape.

“AI continues to be one of the dominant trends in security technology in Indonesia. Its adoption is being driven by increasing usage across both public and private sectors, along with the growing involvement of local developers in creating customized AI solutions tailored to various industries,” explains Hatmadita Ramuny, Co-Founder of Aetherica. “In the security sector, AI-powered applications such as intelligent surveillance, computer vision, machine learning, and predictive analytics are gaining significant interest and adoption, further enhancing security capabilities across the country.”

Alfredo Endon, Business Development Manager at PT. Indostar Security, echoes this sentiment: “We all know that AI has become a top trending topic globally, and Indonesia is no exception. In Indonesia, AI is undeniably the most popular security technology trend, transforming various industries. AI is increasingly used in residential areas and high-rise buildings, where human and vehicle classification systems help create safer environments by reducing false alarms. As AI continues to evolve, it plays a key role in centralizing security systems for smarter, more effective surveillance and predictive threat detection.”

AI-enabled smart city solutions are also at the forefront of public transport upgrades in Jakarta and other urban centers, which have traditionally lacked robust, integrated infrastructures. This push aligns with Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono’s recent call to prioritize “low-emission connectivity infrastructure,” promising special funding for the sector. Security players offering IoT-integrated in-vehicle solutions are poised to significantly benefit from this strategic focus.

However, some private-sector observers urge a more cautious view on AI’s rapid advancements in Indonesia. “AI per se is catching up but not really in practical sense as some of these edge (devices) are also not that good in terms of accuracy,” notes Heng Dju Ong, MD of PT. Mega Teknologi Utama. He adds, “All in all, the efficient pricing push from mainland China brands is dominating the Indonesian market—this is probably similar in most Asian countries except for Japan, Singapore, and Taiwan.”

Intelligent Transportation

Even prior to Minister Yudhoyono’s announcement, intelligent transportation systems have been gaining significant traction in Indonesia, leveraging advanced technologies to tackle various urban mobility challenges. “Automatic license plate recognition (ALPR) technology is gaining traction for efficient parking management,” states Endon.

Sean Conti, Sales Manager for Indonesia at Apollo Security, highlights another critical application: “The Indonesian police have been actively implementing the use of Electronic Traffic Law Enforcement (ETLE), a system using smart cameras to identify traffic violations and vehicle registrations automatically.”

Smart Home

The smart home concept is also experiencing substantial growth in the archipelago. “Housing, villas, apartments, and other residential places have been utilizing smart lock systems and other home automation solutions as they offer an exciting, new, advanced, secure, and convenient lifestyle for middle and higher-income Indonesian citizens,” Conti explains. He concludes, “In general, Indonesian people are becoming aware of the trends and needs of security systems, particularly CCTV, advanced door locks, and home automation solutions.”

A Focus on Safety

Indonesia places great importance on work and occupational safety. The government has established various regulations to protect workers, with laws concerning occupational health and safety applicable across manufacturing, construction, and other high-risk sectors. In response, organizations are increasingly turning to technology to ensure robust worker safety.

“When you look at industries who work in hazardous or dangerous areas, PPE (Personal Protective Equipment) systems are a must to ensure safety. These systems are all about protecting workers while keeping everything secure,” Endon states. “And, some safety management systems are being integrated with HR and access control—this is huge for organizations that need to manage who’s coming in and out of restricted areas, but also to check if an individual still has the eligibility to access the area. It’s really helping streamline operations and make everything safer.”

Cybersecurity

As highlighted in a previous article, cybersecurity remains one of the most formidable challenges facing security players in Indonesia. This challenge is simultaneously a catalyst for awareness and growth in cybersecurity, even though it is still a relatively nascent concept in the country.

“Indonesia is still new towards cybersecurity—a lot of important institutions do not have the awareness of cybersecurity,” Conti observes. “Cybersecurity is new in Indonesia, and I believe there is a lot of growth to be expected here as people are getting more and more aware for the need of cybersecurity.”

*Editorial note: This article is an update of a piece originally published on March 20, 2025.*