The Story of IoT Based Solution Developers in Indonesia
Regulations regarding IoT should be tightened and supply chain to be facilitated. Players are to start monetization
The Internet of Things (IoT) technology is getting more popular for the last five years because it becomes one of few strategic components that support the industry 4.0. Simply put, the IoT technology allows various kinds of electronics to communicate and circulate data, either cross-devices or with other systems or apps.
Last year, the government through Kemkominfo issued regulations regarding LoRA WAN frequency as stated in the Regulation of the Director General of Resources and Equipment of Post and Information Technology Number 3 in 2019 on Technical Requirements for Low Power Wide Area Telecommunications Equipment and/or Devices.
The IoT-based solutions players appreciate this regulation. It's just some regulations are still expected, including providing a discount for import fees for spare parts or raw materials imported from abroad. This discount policy is considered to be able to encourage the IoT industry to develop faster considering that many devices are still imported from abroad, especially China.
Regulating foreign companies and accessible import
One of the startups in this sector is Habibi Garden, which for the last two years has focused on helping farmer groups in West Java. Habibi Garden CEO Irsan Rajamin told DailySocial that import policy was quite important. The existence of a special tax to ease tariffs will provide a positive stimulus for IoT players in Indonesia.
He also added, "The expected regulation, is when the foreign IoT technology entering Indonesia, there should be a partnership or collaboration in any way possible with local companies or startups. Therefore, there is an obligation for transfer knowledge."
A similar thought from eFishery's Chief of Product, Krisna Aditya. He said to support local startups to develop is by regulating foreign IoT companies at least to give space for locals to penetrate the current market.
"Regulations such as TKDN that favor Indonesian startups are indeed favorable. Then, the tax incentives or the easy importing for basic parts needed to develop IoT products are also very important. Almost all required parts to develop IoT are still imported, therefore, when the import process is facilitated with the aim of developing startups in Indonesia, it will open up new jobs in Indonesia," he added.
DycodeX' Co-founder & CEO, Andri Yadi agreed on this subject. He said that reducing import tariffs could be a positive impact on the IoT industry. However, to regulate is not easy. It takes time and effort to record a lot of devices wheter to reduce the cost.
Another regulation that is also expected is TKDN for devices entering Indonesia. Although the discussion is still ongoing in the internal association, this rule is considered to be able to boost the growth of the IoT industry in Indonesia.
Andri said, this TKDN regulation must be prepared in advance, especially the readiness of the local players. Avoid regulations backfire at all cost. When it is expected to grow, instead, it only hinders the developing industry due to unpreparedness.
Stories of local players
The Indonesian IoT Association or ASIoTI is quite optimistic about the opportunities of the IoT industry in Indonesia. Even at the end of 2019 they targeted 200 million sensors in 2020. This target is somewhat missed due to the Covid-19 pandemic, but its development still provides potential and opportunities.
In addition to industrial automation, a number of solutions in the agriculture and fisheries sector can be optimized. Habibi Garden and SmarTernak (one of the solutions from DycodeX) have a solution that is almost similar, but applicable into two different things. HabibiGarden for the agriculture sector and Smarternak for the livestock sector.
Habibi Garden claimed to have collaborated with West Java Digital Service, especially for the agricultural sector. They help farmers to optimize the way they work through the IoT tool. Both in open land or in the greenhouse.
Some devices developed by Habibi Garden include tools to monitor the condition of the growing media, devices that can be controlled remotely to provide fertilizer, water, pesticides, and the like, as well as several other devices.
"We produce 200 sensors that are packaged for 20 farmer groups in West Java. The tools we use include automatic watering systems, cooling systems for greenhouses, weather monitoring systems and planting media. With this tool farmers can know exactly when to do watering and fertilization, with this farmers can get the efficiency of production costs and labor," Irsan said.
SmarTernak also comes with similar solution. Focused on West Java, Smarternak has begun to focus on monetization and implementation.
"In terms of devices, some are installed in cows, some are installed in cages. The ones installed in cages are temperature sensors and water supply. If used in cattle for tracking activity, how long he eats, how long he sleeps," said Andri .
There is also eFishery, a startup whose business unit is developing an IoT device to facilitate fish and shrimp feeding. This startup has developed tens of thousands of devices installed in fish/shrimp ponds in 120 cities/regencies throughout Indonesia.
– Original article is in Indonesian, translated by Kristin Siagian