I think most of it uses programmed, electronic instrumentation. You may sometimes get an assortment of other instruments thrown in, but the vast majority of it must be programmed. You do sometimes get other traditional instruments thrown in. I
I hear real congas, for instance, on one Vico C song, and Calle 13 use trombone and electric guitar, but they are kind of atypical.
This is widely considered a good discussion of the technical side of reggaeton (including instrumentation), though it's not necessarily going to be an easy read:
― Rockist_Scientist (RSLaRue), Wednesday, 18 January 2006 00:58 (twenty years ago)