The latest research by iCIO Community, supported by CTI Group, reveals that cybersecurity, data governance and digital platforms remain the top-three priorities for IT leaders in 2025. A total of 59 percent of IT leaders reaffirm their commitment to these three areas, reflecting the continuity of priorities observed in iCIO’s previous research in 2023. As a continuation of that research, this year’s iCIO Community research aims to delve deeper into how IT leaders adapt, set priorities and design strategies to stay relevant amid the evolving business and technology landscape.

“Understanding priorities means understanding the direction of investment and readiness to face future challenges. Additionally, the results of this research provide IT leaders with an opportunity to gain insights into the challenges and priorities of other industries, which can serve as a foundation for future strategic collaboration initiatives”, said iCIO Community research division coordinator David Wirawan.

A year ago, 69 percent of IT leaders adopted a balanced approach between capital expenditure (CAPEX) and operational expenditure (OPEX), aligning investment strategies with project needs across various industries. However, in 2025, this trend has shifted, with 63 percent of IT leaders transitioning to the OPEX model. This shift indicates that organizations are increasingly prioritizing flexibility and cost efficiency through pay-per-use and subscription-based service models, enabling them to allocate resources more adaptively to changing business needs.

Although cloud adoption continues to rise, IT leaders still face significant challenges ahead. In this research, 31 percent of chief information officers (CIOs) identified cost and resource management as the primary obstacle, followed by difficulties in integrating legacy systems with the cloud (22 percent) and regulatory compliance and data security concerns (10 percent). To address these challenges, 33 percent of CIOs have adopted a hybrid cloud approach, allowing them to balance on-premises infrastructure with a gradual transition to the cloud.

With the full implementation of the Personal Data Protection (PDP) Law since October 2024, IT leaders are strengthening their compliance strategies. In 2023 iCIO Community research, 53.1 percent of IT leaders had allocated budgets and dedicated teams for data compliance. This year, that number has increased significantly, with 92 percent of IT leaders now relying on internal teams to manage data compliance.

However, two major challenges persist: regulatory complexity (27 percent) and data consistency across systems (27 percent). This indicates that compliance requires not only budget allocation but also a well-developed technology strategy to ensure seamless data integration in line with applicable regulations.

Aside from security and data compliance, the adoption of Artificial Intelligence (AI) has become a key factor in corporate digital strategies. 55 percent of IT leaders have already integrated AI into their operations, while another 37 percent plan to adopt it within the next year. AI is now being utilized not only for internal efficiency but also to enhance customer interactions and drive business innovation.

Additionally, regarding technology in 2025, IT leaders are also anticipating two major challenges: how to drive technology-based innovation to generate new revenue and how to optimize IT budgets for greater long-term sustainability.

Heading into 2025, flexibility, innovation and resilience are key factors in corporate technology strategies. “Optimizing technology investments, adopting more flexible operational models and enhancing digital capabilities are crucial to maintaining business resilience. Moving forward, cross-industry collaboration and data-driven approaches will play an increasingly vital role in the success of digital transformation”, said iCIO Community research division coordinator Edwin Sugianto, who serves this role along with David Wirawan.

With strong collaboration and well-planned strategies, IT leaders in Indonesia are ready to tackle challenges and create new opportunities in an increasingly advanced digital landscape.

iCIO Community is a network of CIOs and executives in the ICT sector from companies and organizations across Indonesia. It is designed as a platform for sharing best practices and leadership in the ICT field. More information about iCIO Community can be accessed through its website at www.ciocommunity.org.

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