Indonesia's Cybersecurity Market Projected to Reach US$6.7 Billion by 2034

Competition in Indonesia’s cybersecurity business is entering a new chapter amid rising cyber threats and accelerating digital transformation. Where security services previously focused on selling devices and licences, information and communication technology (ICT) providers are now racing to deliver integrated security solutions featuring artificial intelligence (AI), cloud, and managed security services. The implementation of the Personal Data Protection Law (UU PDP) and the expanding adoption of cloud computing are also pushing companies to increase their investment in cybersecurity. Erick Hadi, Secretary General of the Indonesia Data Center Ecosystem Council (IDCEC), said demand for cybersecurity solutions has risen significantly over the past two years. He noted that companies now view cybersecurity as part of their business strategy, rather than merely a complement to their IT systems. Between 1 January and 15 April 2026, the number of attacks reached approximately 1.52 billion. “What makes customers more serious is not just the statistical figures, but also the various major incidents whose impact they have felt. Cybersecurity is now a matter of business continuity,” Erick told Kontan.co.id on Saturday (11/7/2026). According to Erick, the surge in cyber threats is also reshaping the industry’s competitive landscape. Where the market was previously dominated by cybersecurity vendors, ICT integrators, telecommunications operators, cloud service providers, and data centre operators are now also offering digital security services as part of their business portfolios. He estimates the value of Indonesia’s cybersecurity market reached around US$1.4 billion in 2025 and could potentially increase to US$6.7 billion by 2034. Erick said changing customer needs are also shifting the model of competition in the cybersecurity industry. Companies are no longer just looking for security software or licences, but rather solutions that can protect their entire IT ecosystem. “The competition is no longer a price war, but a differentiation war. Companies that can deliver integrated security solutions tailored to customer needs will be the winners,” he said. He explained that AI integration enables security systems to recognise attack patterns, detect anomalies, and respond to threats automatically in real time. Therefore, Erick believes ICT service providers need to expand their capabilities, not only in selling security products, but also in providing managed security services, cloud infrastructure protection, and 24-hour security monitoring services. He said the prospects for Indonesia’s cybersecurity industry remain very promising. In addition to being supported by the acceleration of digitalisation across various sectors, the implementation of data protection regulations will also raise companies’ awareness to strengthen their security systems. “Going forward, the winner will not be the company that sells the most products, but the one that can become a strategic partner for customers in safeguarding their data security and business continuity,” Erick concluded.