Indonesia's security software market experienced a remarkable growth of 16.1% year-on-year in the second half of 2024. IDC attributes the surge to ongoing modernisation efforts as organisations adapt to hybrid infrastructures, face expanding digital risks, and respond to increasingly sophisticated cyber threats.
Investment in network security, identity and access management (IAM), and security analytics has surged, underscoring enterprises' priorities to protect their infrastructure and comply with regulatory standards.
As the security landscape evolves, many organisations are reassessing how they manage operational complexity. There is a marked shift from using fragmented point tools to adopting integrated platforms that centralise monitoring, automate processes, and streamline workflows.
“Organisations are embedding security into the foundation of their digital operations, moving away from piecing together standalone tools,” says Sandika Putra, associate market analyst at IDC Indonesia.
Artificial Intelligence (AI) and Generative AI (GenAI) are central to this transformation. Security Operations Centres (SOCs) in Indonesia are increasingly deploying AI-powered tools to automate repetitive tasks, filter alert noise, and streamline incident response.
According to IDC survey findings, leveraging GenAI to enhance productivity has become a top security priority, alongside cost control and automation. Global vendors are integrating AI into locally hosted platforms to meet performance and compliance requirements, while Indonesian providers are focusing on niche solutions in areas such as threat detection and response playbooks.
As GenAI technologies gain traction, securing the AI data pipeline becomes critical. Organisations must address risks like data leakage and model poisoning to maintain trust and reliability. This evolving landscape necessitates new security frameworks tailored to protect AI infrastructure, from cloud environments to edge devices.
Moreover, compliance with regulations like Indonesia’s Personal Data Protection Law (UU PDP) has heightened awareness around data security, but organisations now view compliance as a starting point rather than an endpoint. Government Regulation No. 71/2019 further outlines standards for securing digital infrastructure, reinforcing the need for organisations to prioritise cost optimisation, process automation, and enhanced team productivity.
The Indonesian security market is transitioning from basic cybersecurity measures to more strategic, scalable defences. As sectors like financial services adopt proactive, integrated strategies driven by regulatory requirements, other industries, such as education and healthcare, lag due to legacy infrastructure and resource constraints.
As AI becomes increasingly integral to security operations, organisations are evolving from basic automation to intelligent systems that learn and adapt in real-time. This shift enables faster responses and prioritisation of threats, essential for teams facing high alert volumes and limited resources, ultimately fostering a more secure and resilient digital landscape.