Indonesia’s smart homes market revenue looks set to reach $305 million USD this year, with the number of active households rising to 12.6 million users by 2025. The annual growth rate of 22.7% is likely to deliver $691 million USD in volume, and the household penetration will increase by 6% to 16% within four years.

This value comes from the Internet of Things (IoT), a network of connected tech devices communicating with each other and the internet. These gadgets’ sensors allow them to collect and share data with others, solving a specific need. Common examples of IoT Indonesia and other countries are embracing include smart lighting and alarm clocks, temperature controls and app-managed door locks.

According to a McKinsey Global Institute survey, IoT could impact the economy by up to $11.1 trillion USD annually in 2025. Most of the value will come from business-to-business (B2B) interactions, while consumers and companies will get 90% of the value created. Smart homes in Indonesia benefit from the convenience, custom solutions, data collection and sharing, time savings and technological advances IoT delivers.

We look at 5 emerging social commerce startups in Indonesia

Even so, there are challenges such as connection security and data privacy which are significant concerns. Data collection and analysis can fail to meet its objectives. Moreover, there can be issues with reliability, interoperability and releasing new technology to keep up with demand. 

The smart home startup Indonesia market is currently small, but some players are making their mark, such as the ones below:


The worldwide push for environmental conservation and energy efficiency requires innovative solutions. For Better Electricity (Forbetric) is a smart building automation service that helps homeowners save energy, money, and the planet.

Its solution is customised, conducting energy audits and providing energy upgrades to the home. Its innovative products include control over Google Nest Home, room temperature management, and LED light bulb regulation. In 2019, the Forbetric team won 10 million Rupiah from the Institut Teknologi Bandung (ITB) to fund their ideas.

BARDI Smart Home

Getting IoT products for the house is simpler because of BARDI Smart Home. The company provides colour-changing light bulbs, power extensions, infrared remotes, portable smart plugs, indoor cameras and an IP camera with night vision capabilities.

The Bardi products work with Amazon’s Alexa, Google’s Assistant, Apple’s Siri and SmartThings, and they come with a one-year warranty.

Tuya Smart

Over 5000 global customers power their products using Tuya Smart’s platform. The company’s AI (artificial intelligence) and IoT solutions provide cloud, product and app development features. It also has a data centre and analytic capabilities, plus other value-added services.

Tuya integrates with the global voice assistants, and it sells lighting, electrical, outdoor, entertainment and home appliances. Thus far, the company has raised $276.8 million USD, and its investors are Dragoneer Investment Group, Global Bridge Capital and Hillhouse Capital Group. Other funders are Tengxun Touzi, Quadrille Capital and New Enterprise Associates (NEA).


Singapore’s smart living management system company Habitap has announced a collaboration with Indonesian luxury residential property Savyavasa. The partnership will give homeowners access to an automated assistant called Handy, which will enable them to control their devices, manage their houses, talk to the community and reserve or order various services.

The platform uses banking-grade security, allowing users to conduct transactions and app store purchases safely. The mobile app gives convenient access to all the IoT products in the home and brings the best service providers from different industries into its system. Lastly, it offers a full customisation feature, enabling customers to design their preferred Habitap solution.

The future looks smart 

Forecasters believe that more than 75 billion Internet of Things connected devices will be in use by 2025. Two years before then, IoTs expected global spending will be $1.1 trillion USD, making smart homes ‘smarter’ than ever.

The increase in mobile subscribers and the rollout of 5G technology means smart homes in Indonesia will become the norm for developers and interior designers. Other areas will see innovations for at-home patient care, home safety and better customer experience and convenience. 

One smart home startup Indonesia lacks is a blockchain interconnected wearable company, allowing the user to control everything from their wrist. Nevertheless, the mobile apps are currently working well, with energy efficiency, lighting, and environmental care solutions. Voice assistance and control can enhance the customer’s experience and convenience when managing their home.

The total installed base of IoT Indonesia might be unknown for now. Still, the anticipated rise of connected devices worldwide to 30.9 billion units in 2025 from 13.8 billion in 2021 indicates a user increase in this Southeast Asian archipelago.

As the McKinsey survey shows, IoT will create new businesses, competition, products and solutions, which will change how consumers live. The challenge is to balance lifestyle convenience, security and privacy with technological advancement.