Indonesia Drone Market - Strategic Insights and Forecasts (2026-2031)

The Indonesian Drone Market is set to reach USD 480.2 million in 2031, growing at a CAGR of 8.5% between 2026 and 2031, from USD 319.4 million in 2026.

Key Highlights

Market Overview

The Indonesian Drone Market is anticipated to grow at a significant CAGR of 8.5% during the forecast period between 2026 and 2031. Sectoral demand is observed in the agriculture, mining, construction, energy, disaster management, logistics, and media production sectors. Precision agriculture drones are being deployed to support national food security goals as part of initiatives such as Program Serasi, enabling automated spraying, land mapping, and crop monitoring at scale.

The National Disaster Mitigation Agency (BNPB) is increasingly standardising drone reconnaissance through solutions that conform to the InaSAFE emergency framework, significantly improving response times to floods, earthquakes, and forest fires. In infrastructure development, the Ministry of Public Works and Housing (PUPR) uses drones to monitor the performance of key initiatives in toll roads, dams, and public housing projects, aligning with the burgeoning Smart City and Smart Infrastructure campaigns.

• Indonesia is developing a more formal regulatory framework to promote the safe operations of commercial drones as well as safety through digital licensing and airspace situation awareness.

• Recent Indonesia Drone Regulation Update 2025-2026 includes the development of a National Unmanned Traffic Management (UTM) system, Remote ID implementation, and expanded BVLOS (Beyond Visual Line of Sight) operational requirements.

• The introduction of Law No. 21 of 2025 on Airspace Management provides a tighter limit on the usage of UAVs, as well as the regulation in place for future development of a commercial drone ecosystem.

• The agriculture industry in Indonesia is emerging as one of the fastest-growing commercial drone applications, with farmers increasingly using UAVs for crop monitoring, precision spraying, fertilizer application, and plantation management.

• In the infrastructure sector, the “One Map Policy” (Kebijakan Satu Peta), promoted by the Geospatial Information Agency, utilizes drone-based aerial mapping as a key component of national land data standardization across ministries.

• Indonesia has the potential to become a major drone production hub in Southeast Asia, with significant growth expected over the next ten years. According to a University of Graz report, the number of drones in Indonesia increased from 6,500 in 2018 to 17,200 in 2024, with an estimated 22,500 units by 2028.

• Global technology leaders and local innovators work together to shape Indonesia's drone ecosystem. Among the most active local manufacturers and system integrators are Terra Drone Indonesia, PT Famindo Inovasi Teknologi (PT FIT), Halo Robotics, BETA-UAS (PT Bentara Tabang Nusantara), and Frogs Indonesia. They provide specialized UAV solutions for mining, agriculture, surveying, and inspection. Newcomers such as MSDI and PT Mandiri Mitra Muhibbah contribute to training-focused and specialized industrial applications.

Market Drivers

Increasing Defense Modernization and Border Surveillance Investments

Indonesia is boosting its defence capabilities through continued investments in unmanned aerial systems (UAS) to enhance both intelligence, surveillance and reconnaissance (ISR) and maritime security. These military drones have been rapidly procured and deployed due to the vast archipelagic geography of the country and its long maritime borders.

• The country itself is quite vast, with a strategic location and over 17,500 islands, which leads to growing demand for military-grade drones.

• Indonesia's 2025 defence budget analysis showed a projection of IDR 166.2 trillion, which was later revised to IDR 364.1 trillion in support of various military modernisation initiatives (Alutsista), towards developing the defence industry and force readiness.

• The Ministry of Defense committed to the MALE (Medium Altitude Long Endurance) "Elang Hitam" UAV as a national strategic program to improve domestic ISR capabilities and reduce dependency on foreign defense systems. The Elang Hitam drone can remain airborne for 24–30 hours and is suitable for long-duration border patrolling and civilian use along with surveillance over Indonesia's vast archipelagic territory.

• PT Dirgantara Indonesia (PTDI) successfully flew the Elang Hitam MALE UAV for the first time at Kertajati International Airport in West Java in July 2025, marking a significant milestone to certification before deployment in future operations.

Rising awareness regarding the benefits of drone technology across industries

Drones are utilized across various sectors for a wide range of applications. In the oil and gas industry, drones are employed for tasks such as pipeline inspection, monitoring of infrastructure, and surveying of remote locations. In the utilities sector, drones are used for inspecting power lines, assessing damage after natural disasters, and conducting aerial surveys. In mining, drones aid in surveying, monitoring mine sites, and assessing environmental impact. Public Safety agencies utilize drones for search and rescue operations, monitoring of large events, and traffic management.

To gather information about agricultural innovators of the industrial era 4.0, the Indonesian Association of Seed and Farmer Technology Banks (AB3TI) surveyed farmers in 14 districts of Indonesia in 2019. According to the data, 22.35 percent of farmers own a smartphone running the Android operating system. Furthermore, 14.38 percent of farmers get agricultural information using mobile phones. According to Mulyandari's research, farmers want information technology for communication, to learn about agricultural production and technology, and as a tool to increase the promotion of agricultural goods.  

In public infrastructure, drones assist in monitoring construction projects, inspecting bridges and roads, and assessing structural integrity. In Telecommunications, drones aid in infrastructure inspection and maintenance. In Transport and Logistics, drones are used for inventory management, package delivery, and monitoring of transportation routes. In Agriculture, drones help in crop monitoring, precision farming, and pest control. Additionally, drones find applications in Insurance for assessing damage claims and in media for aerial photography and videography. Overall, drones play a crucial role in enhancing efficiency, safety, and data collection across various sectors.

Drone makers, service providers, industry participants, and government organizations are collaborating and forming partnerships, which are stimulating innovation and propelling market expansion. These collaborations make it possible to create solutions that are specifically suited to the demands of the sector. The need for qualified technicians, data analysts, and drone operators is also rising. There are certifications and training courses available to provide people with the abilities they need to operate drones safely and successfully.

Major Segment Analysis

Component: Hardware

By component, the Indonesian drone market is segmented into hardware and software, with the former set to grow significantly, fueled by a growing emphasis on improving data analysis and processing. Ongoing investment to bolster the promotion of precise drone applications, followed by industrial advancements, has provided new growth prospects for drones and other autonomous solutions. The hardware segment is expected to grow at a steady rate owing to the continued industrial investment in drone solutions.

• Ongoing emphasis on improving the efficiency of aerial monitoring and disaster management, coupled with the precision farming transition, has escalated demand for drones in Indonesia, thereby supporting hardware requirements. The expansion of “Industry 4.0” further supports market development.

• Strategic collaboration by domestic players to expand their drone manufacturing is supporting market expansion. For instance, in February 2026, PT Dirgantara Indonesia formed an MoU with drone technology provider FROGS Indonesia that expands the former's aerial unmanned platform development for various applications.

• Establishment of drone centers, followed by substantial government investments in military modernization, further fuels demand for drone accessories and necessary hardware, which is propelling market growth.

• Companies like Terra Drone have invested in bio-composite drone hardware, which is anticipated to drive market innovations. In May 2025, the company introduced its bio-composite drone airframe cover made in collaboration with Midwests Composites.

• Ongoing efforts to expand commercial drone operations in Indonesia have made governing authorities like the Ministry of Transportation draft regulations supporting AAM (Advanced Air Mobility), which will improve the drone development and deployment scenario in Indonesia.

Application: Commercial Drone

By application, the Indonesian drone market is segmented into commercial and consumer drones, and the former is sub-categorized into government, energy, military and defense, construction, agriculture, security and surveillance, and others. Strategic government initiatives promoting advanced air mobility development have played a key role in accelerating drone adoption in Indonesia. The commercial segment is expected to show considerable growth fueled by the growing emphasis on precision farming.

• Indonesia has prioritized smart farming, supporting the “Agriculture 4.0” concept, which has provided a framework for the development of advanced solutions for crop monitoring and spraying operations in the country. Such efforts have bolstered agriculture drone adoption.

• Key companies like Terra Drone Indonesia have shown continued investment in modernizing Indonesia’s agriculture sector through its UAS solutions. Through its strategic collaboration with PT. Yanmar Diesel Indonesia, Terra Drone has provided its in-house agriculture drones to local Indonesian farmers.

• Establishment of projects such as “Projects of Supporting Smart Agriculture Verification in Southeast Asia” by Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) has also supported demonstration of smart agriculture technologies in Indonesia, thereby assisting firms like Terra Drone to improve their market presence.

• AI integration in farming is also driving innovations in drone technology in Indonesia. For instance, researchers from institutions like IPB University have developed swarm drone technology that supports AI-based indoor farming. Such research innovations also play a key role in promoting smart & precise farming in Indonesia.

• Global drone solutions providers such as DJI enjoy a significant market presence in Indonesia’s agriculture sector through their flagship UAS, including “Agras T50” and “Agras T100”. Likewise, domestic players such as PTDI, collaborating with drone technology providers to expand their portfolio for various applications, including agriculture, have improved market competitiveness.

Company Profile

PT Famindo Inovasi Teknologi (PT FIT) has adopted a strategy centered on domestic drone manufacturing, technological innovation, and localization to strengthen Indonesia's UAV industry and reduce dependence on imported drones. The company focuses on designing, assembling, and testing drones in Indonesia using nationally and internationally accredited manufacturing standards, enabling it to deliver UAV solutions tailored to local operational requirements.

PT FIT positions itself as more than a drone manufacturer by serving as a developer, system integrator, education center, and after-sales service provider, allowing it to support customers throughout the drone lifecycle. The company targets multiple end-user industries, including defense and security, agriculture, surveillance, mapping, disaster management, and industrial inspection, thereby diversifying its revenue base.

Halo Robotics stands out in the Indonesian drone market with its commitment to innovation and versatility. Specializing in providing advanced drone solutions across various sectors, Halo Robotics ensures reliability and efficiency in its products. Their drones are tailored to meet diverse industry needs, ranging from agriculture to construction, making them a preferred choice for businesses seeking cutting-edge aerial solutions in Indonesia.

Terra Drone Corp holds a prominent position in Indonesia's drone industry, renowned for its global expertise and comprehensive services. Specializing in aerial data acquisition, Terra Drone offers advanced solutions for industries such as mining, agriculture, and infrastructure development. With a focus on cutting-edge technology and precision, Terra Drone continues to redefine the landscape of drone services in Indonesia, providing clients with reliable and accurate data for informed decision-making.

MSDI is emerging as a competitive player in Indonesia's drone market, offering cost-effective and efficient aerial solutions for various applications. With a focus on affordability and reliability, MSDI caters to the needs of industries ranging from environmental monitoring to disaster management. Leveraging its expertise in drone technology, MSDI aims to provide accessible and practical solutions to businesses and organizations across Indonesia, contributing to the growth and development of the drone industry in the region.

Recent Developments

• May 2026: Indonesia’s Ministry of Transportation awarded a Validation Type Certificate (VTC) for the HY100 cargo drone to Ursa Aeronautical Technology, marking a significant regulatory milestone supporting commercial drone deployment and unmanned cargo operations in Indonesia.

• May 2026: Türkiye’s Baykar and Indonesia’s Republikorp Group signed an agreement at SAHA 2026 covering the delivery of 12 Bayraktar Kizilelma unmanned combat aerial vehicles (UCAVs), alongside plans for maintenance and aerospace ecosystem development in Indonesia.

• April 2026: DJI, through official distributor Erajaya Active Lifestyle, launched the DJI Lito 1 and Lito X1 drones in Indonesia, introducing lightweight sub-250g platforms with advanced omnidirectional obstacle sensing and LiDAR capabilities (on the X1) for consumer and professional users.

• October 2025: Indonesia’s Ministry of Transportation signalled a regulatory and planning push toward commercial Advanced Air Mobility (AAM) operations by December 2026, including deployment in frontier regions.

• October 2025: Terra Drone Indonesia’s G20 agricultural drone obtained TKDN local content certification, improving access to government projects and maintenance, driving expanded use in Indonesia’s palm plantation and agricultural sectors.

Indonesia Drone Market Scope