Terra Drone Corporation, a leading drone and Urban Air Mobility (UAM) technology company headquartered in Japan, has been selected for the "Industrial Cooperation Programme in the Global South1 through Technology Transfer" (Project Name: Practicality Verification Project for UAS Traffic Management (UTM) in the Indonesian Market, hereinafter referred to as "this project"). This initiative is part of the supplementary budget for FY2023 by the Ministry of Economy, Trade and Industry, with an allocation of up to 500 million yen. Terra Drone aims to develop a UTM system that will serve as essential air infrastructure, anticipating the rise in drone utilization across Indonesia.
Amidst the Ukraine situation and the increasing presence of Global South countries, the Japanese government is actively discussing policies to bolster cooperation2. According to a report by Mitsubishi Research Institute, the combined nominal GDP of the Global South countries is expected to exceed that of the U.S. and China by 2050.
Indonesia, where this project will be implemented, stands as one of the world's foremost oil and gas nations. The drone inspection market shows promising potential, particularly in large-scale agriculture, such as palm plantations and inter-island logistics. Significant growth in the drone market is anticipated across ASEAN countries. Since 2017, Terra Drone has been actively engaged in the Indonesian drone industry, solidifying its position as a key player in local drone services.
Moreover, Terra Drone posesses extensive global expertise in the UTM sector, including Unifly, a leading UTM company with a track record of national-level implementation, and Aloft Technologies, a top UTM provider in the United States, both group companies of Terra Drone.
In driving this project forward, Terra Drone intends to leverage the collective knowledge, experience, and technology of its group and subsidiary companies. As part of this effort, Terra Drone will conduct demonstrations in multiple Indonesian cities, including Jakarta and the upcoming capital city Nusantara3, to achieve practical UTM implementation crucial for widespread drone adoption in the future. This initiative aims to strengthen economic ties with Global South countries and bolster Indonesia's economy. Looking ahead, Terra Drone plans to commercialize UTM services locally.
1 Global South: A general term encompassing emerging and developing countries in the Southern Hemisphere, such as those in Asia, Africa, and Latin America.
2 Prime Minister's Office of Japan, Meeting to promote cooperation with Global South countries
3 Nusantara: A new city under construction on East Kalimantan Island, slated to replace Jakarta as the capital.
