Indonesia's First 5G Smart Warehouse Signals Collaborative Digital Ecosystem, Riding APAC's Accelerated 5G Adoption Wave

According to GSMA forecasts, 5G technology is expected to contribute significantly to the Asia Pacific economy, with an estimated benefit of $133 billion by 2030, with key industries such as manufacturing, healthcare, transportation, utilities, retail, financial services and public sector benefitting the most from the new technology for digital transformation, Industry 4.0 and enterprise 4.0.

Huawei has been present in several APAC countries, to share experiences and knowledge, as well as launch a number of initiatives such as 5G development and innovation centers and build pilot projects related to 5G implementation.

One of the latest initiatives is the launch of the first 5G Smart Warehouse in Indonesia, which is also equipped with a 5G Innovation Center. This smart warehouse, which occupies an area of 15,500 square meters, can be a case example of 5G implementation in logistics, which has a myriad of best-in-class advanced technology advantages.

The 5G Smart Warehouse concept utilizes the latest network service solutions and technologies such as 5G Private Network, Multi-access Edge Computing (MEC), IoT, and Big Data Analytics to optimize operations, improve security and safety, prevent human error, create effective working time, reduce energy consumption, and reduce potential unexpected losses.

Warehouse managers can conduct digital simulations using Digital Twins and Big Data Analytics solutions to monitor and analyze warehouse operations in real-time to optimize inventory management, especially in preventing over- and under-stocking. Meanwhile, the 5G BTS technology that supports all business operations in the 5G Smart Warehouse consumes only 5 watts of energy, which is equivalent to one energy-saving light bulb. This energy efficiency makes our 5G BTS technology a sustainable solution for the future.

We are not doing this alone. Our local partner Telkomsel Enterprise provides 5G broadband connectivity to facilitate fast and accurate communication between staff and autonomous guided vehicles (AGV) robots while ensuring the efficiency of goods movement. In addition, they developed an intelligent security system equipped with video sensors and infrared sensing to keep the warehouse safe.

Just several years ago, the widespread use of 5G in this era of digitalization was merely a dream. Now, Indonesia’s 5G Smart Warehouse provides the most accurate illustration of how 5G technology plays a major role in improving the quality of life of an industrial sector, including business owners and workers involved in it. The implementation of 5G in warehousing systems can increase operating efficiency by up to 20 times, given the very high level of precision and accuracy in goods management. Additionally, 5G technology enables humans to collaborate with AI-based robots, pushing the capabilities of smart warehouses to new heights. This smart warehouse offers a case study for diverse industries, extending beyond logistics, to explore and implement.

Globally, the wave of 5G technology implementation has accelerated up to three times faster than 4G over the past three years. Today, the adoption of 5G technology has moved from the trial stage to commercial implementation with the number of global 5G network users reaching 700 million, jumping more than 200% in a year.

Such a promising picture in the global setting also holds true in the Asia Pacific region, where 5G implementation in several pioneer countries has broken the 16% threshold. Take China and South Korea with 5G penetration exceeding 40%. Meanwhile, Thailand, Malaysia, and Indonesia are working hard to catch up with their APAC counterparts who have already implemented 5G technology.

As of the end of March 2023, 29 mobile operators in 15 Asia Pacific countries have launched 5G commercial services. Based on GSMA projection estimates, 5G connections will be used by 1 billion users in Asia Pacific by 2030. 

The presence of the Huawei 5G Smart Warehouse, as well as the Solo Technopark, which is armed with various 5G technological advances and has been operating since 2023, is a joint effort of the digital ecosystem in Indonesia, vividly showing the public how useful technology is in the life of a 5.0 society. This is a significant step forward for Indonesia's digital transformation journey.

The momentum of digital transformation we are witnessing in Indonesia showcases a model that could be affectively replicated across other APAC countries embarking on their digital journey. The advent of 5G technology stands as a pivotal breakthrough not just for telecom operators but for the broader ecosystem. Its impact extends well beyond commercial enterprises, promising to significantly enhance the quality of life for individuals by fostering improved connectivity, accessibility, and efficiency in everyday interactions and services. This presents an exciting opportunity for societal advancement, marking a new era of digital integration in the APAC region.