The Future of Indonesian Local Drones, Can They Break into the Global Market?

Tue, 28 Jan 2025 09:50 | Drone | Editorial INTI

Jakarta, INTI – The drone industry in Indonesia has seen significant growth in recent years. According to data presented by the Chairman of the Indonesian Drone Pilot Association, Akbar Marwan, in an interview with INTI Media on January 22, 2025, drone pilot production in Indonesia reached between 8,000 and 10,000 units, showing growth from 2023, when production was limited to only 8,600 units.

In line with data released by the Managing Director of Terra Drone Indonesia in 2022, it was stated that the industry is expected to grow by up to 15 percent over the next five years.

Modern drones now incorporate advanced technologies in their operations, such as artificial intelligence (AI), which enables drones to analyze data in real-time and improve accuracy. Additionally, drones are equipped with 5G internet connectivity, accelerating data transmission and making drones more responsive.

In Indonesia, drone operators have recognized this great potential and view each other not as competitors, but as collaborators, working together to strengthen the local production ecosystem. The Association of Unmanned Systems and Technology (ASTTA) even stated that if the industry continues to grow at this rate, by 2028, its value could reach $93 million, out of the global drone market potential of $46.6 billion.

Positive Impact of Drones in Digital Transformation

The transformation of drone functions brings positive impacts not only for drone manufacturers but also for various business sectors, which find their operations much more efficient and cost-effective after adopting this modern technology, particularly in agriculture.

Some of the benefits of drones in agriculture include monitoring plant growth, fertilization, and irrigation inspection. According to drone market reports, the agricultural sector is projected to reach $1.2 billion USD by 2025, with a growth rate of 30 percent.

One specific benefit of drones in agriculture is counting the number of palm oil trees in plantations. In the past, this was done manually, but now drones can perform the task with greater accuracy. Using drones for mapping palm oil trees ensures high accuracy in tax reporting, improving transparency and national revenue. Drone use also helps reduce workplace accidents, lowers operational costs, and increases labor efficiency.

Additionally, the introduction of the Unmanned Traffic Management (UTM) system has become a strategic step in supporting the digital transformation of drone usage. This system addresses the need for proper management of drone traffic, as clear systems and regulations are still lacking and often overlooked.

Prospects and Challenges for Local Drone Production

Despite the vast potential for drone technology in business sectors, its implementation still requires a well-prepared transition period, particularly in terms of developing a skilled workforce.

Akbar Marwan also added that Indonesia needs to improve its human resources to keep up with rapidly advancing technology through education, outreach, and collaboration with schools.

Furthermore, the government can support local drone manufacturers by creating a competitive market through the purchase of local products rather than foreign ones. By purchasing local products, demand will increase, making local drones more competitive in the market.

If this can be achieved, local producers will be able to easily manufacture the components that make up drones within Indonesia, thus creating a strategic market that is attractive to foreign investors. Increased demand will allow drone components, including software, to be produced locally, reducing reliance on imports.

Government’s Role in Promoting Local Drone Industry

The government plays a key role in advancing the drone industry in Indonesia through progressive and sustainable policies. The "Observe, Imitate, Modify" principle, applied by developed countries like China—which offers incentives like waiving shipping costs for international product exports—can serve as an inspiration for Indonesia to adopt similar measures. By facilitating logistics, such as subsidies for shipping costs and efficient distribution facilities, local drone products will become more competitive in the international market.

In addition, offering fiscal incentives such as tax cuts for local drone manufacturers, easing licensing procedures, and funding for research and development (R&D) will accelerate technological innovation and improve the quality of domestic products. Organizing international exhibitions, both domestically and abroad, is also an effective strategy to introduce the advantages of Indonesian-made drones to potential buyers and global investors.

Furthermore, awarding and recognizing local innovators who successfully create high-performance drones with regional competitiveness in the Asia-Pacific market can motivate industry players to continue innovating. Collaboration between the government, academia, and the private sector in drone technology development is also necessary to build a sustainable ecosystem and establish Indonesia as a hub for drone innovation in the region.

Future Prospects of Indonesia’s Drone Industry

Indonesia's drone industry has great potential for growth, with showcases serving as strategic venues to introduce local drone innovations to the global market. Exhibitions and technology demonstrations provide opportunities for domestic producers to showcase the quality and competitiveness of their products, while attracting interest from investors and business partners.

Government support in the form of clear regulations and financial incentives is crucial to strengthening the industry’s competitiveness. Supporting policies such as international certification standards, export licensing facilitation, and performance-based financing will boost industry confidence in expanding their markets. Providing infrastructure such as innovation centers and globally standardized testing facilities will also accelerate the sector's growth.