Japanese drone services company Terra Drone Corporation has been chosen for a programme to introduce unmanned traffic management (UTM) services into Indonesia.

According to a statement from the drone company, the project is part of the Japanese government’s industrial cooperation programme in the global south through technology transfer and has a rather longish name: Practicality Verification Project for UAS Traffic Management (UTM) in the Indonesian Market.

Terra Drone aims to develop a UTM system that will serve as essential air infrastructure, anticipating the rise in drone utilisation across various industrial applications in Indonesia.

“Moreover, Terra Drone possesses 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,” the drone company said.

“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 Nusantara, 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.”

Terra Drone clarified that the initiative is part of the supplementary budget for the 2023 financial year by the Ministry of Economy, Trade and Industry, with an allocation of up to 500 million yen (roughly $3,5million).

The initiative is part of latest efforts by the Japanese government to bolster economic cooperationwith countries in the global south

Which does make sense because China seems to be winning that race at the moment.

According to a report by Mitsubishi Research Institute, the combined nominal GDP of the Global South countries is expected to exceed that of the US and China by the year 2050.

Indonesia, where this project will be implemented, is one of the world’s foremost oil and gas nations; and provides a potentially big market for drone inspections; as well as drone applications in large-scale agriculture, such as palm plantations and inter-island logistics.

Significant growth in the drone market is anticipated across Association of South East Asian Nations (ASEAN) countries; and Terra Drone has been in Indonesia since 2017, actively engaged in the drone industry and solidifying its position as a key player in local drone services.