Maritime technology market in Indonesia

Indonesia is an archipelagic nation with over 5.8 million square kilometres of maritime territory. The country relies heavily on its maritime sector, which contributes around 7% of GDP. The government aims to raise this level of contribution to 15% by 2045.

Maritime transport is essential for moving goods across thousands of islands. Government initiatives focus on reducing regional price disparities, enhancing port connectivity, and improving hinterland links. Investments in digital port systems, vessel traffic management, and customs automation are enhancing reliability, transparency, and overall efficiency in Indonesia’s complex maritime supply chain.

Indonesia’s Maritime Highway (Sea Toll) Program improves inter-island connectivity, logistics efficiency, and economic equality. Since 2015, it has expanded from 3 to 39 routes and ships, now serving 114 ports, with cargo volumes rising from 30 tonnes and 88 twenty-foot equivalent units (TEUs) to 989.75 tonnes and 31,878 TEUs. 

Complimenting this program, Indonesia’s Green Port Initiative, launched in 2019, promotes sustainability across 2,459 ports through the adoption of clean energy, low-sulphur fuel, and enhanced environmental protections.The initiative aims to reduce carbon emissions in the maritime sector while supporting more modern and efficient port operations.

• the government’s vision to establish the country as a “Global Maritime Axis” 
• digitalization initiatives that create opportunities for technology providers

Domestic companies dominate operational services, infrastructure management, and government partnerships, giving them a strong advantage in port modernization projects. 

State-owned Pelindo leads smart-port transformation through terminal digitization, cashless payments, automated gates, and integrated digital platforms. Other major Indonesian firms advance logistics software, automation, and system integration. 

• digital port solutions
• IoT-enabled monitoring tools
• maritime cybersecurity

The widespread reliance on manual processes creates an immediate need for sensing, tracking, and data-integration technologies. Pelindo’s rollout of automatic gates, IoT systems, and 5G-powered automation, combined with government interest in safeguarding critical logistics data, makes digitalization and cybersecurity strong segments. 

Medium-term opportunities include:

• AI-enabled analytics
• autonomous systems
• cloud-based maritime platforms

Long-term opportunities include green technologies and large-scale automation, though these remain constrained by high capital costs and the limited technical capacity of the current workforce.

The most effective partnership models in Indonesia revolve around alliances with local distributors, systems integrators, and university-linked R&D teams. 

Foreign products gain traction only when adapted to Indonesian operating conditions and validated through small-scale pilots, often co-developed with academic institutions. 

Canadian firms should prioritize practical, cost-sensitive solutions that deliver clear operational benefits. Companies should also invest early in local capability-building, localization, and regulatory navigation to support long-term growth and scaling.

Technology adoption across Indonesia’s port sector remains uneven. Container ports are generally more modernized, while many bulk ports continue to rely on limited automation, outdated monitoring systems, and manual record-keeping.

Challenges include unstable electricity and internet, hard-to-source spare parts, and inconsistent security enforcement. Advanced technologies like electric or autonomous vessels face high costs, technical limitations, and uncertain regulations. 

Early adoption is often driven by pilot projects or subsidies. To succeed, experts stress the need for workforce training, gradual implementation, and being mindful of regulations.

• INAMARINE: B2B event for the maritime and offshore industries, typically in July
• Indonesia Marine & Offshore Expo:  B2B event in Batam, typically held in the summer
• Singapore Maritime Week (SMW) : the largest industry event in the region, taking place in the sprin

For more information on the maritime technology market in Indonesia, please contact jkrtatd@international.gc.ca.