Indonesia’s Growth in Cloud Computing Attracts Big Tech Companies

Likes of Amazon, Google and Tencent setting foot in Indonesia's market

Vrisha Phrabhakaran

11 Jan, 2022

Indonesia’s Growth in Cloud Computing Attracts Big Tech Companies | BEAMSTART News

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Amazon announced at the end of 2021 that it would be investing approximately $5 billion in Indonesia over the next 15 years.

This is just a small portion of investments pouring into the battleground that is Indonesia’s growing data market.

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More Big Tech Companies Setting Foot

  • Google announced its desire to expand its cloud services across Indonesia back in 2020
  • In 2021, Tencent raised the stakes higher with plans to implement two new data centres in Indonesia by the end of the year.

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High Growth Rate in IT Market

Indonesia has the 4th largest population in the world and is expected to be the fastest-growing IT market in the Asia Pacific with a compound annual growth rate (CAGR) of 8%.

Moreover, the rising demand for digital services has made Indonesia a hotspot for big tech to provide its cloud computing services.

Through the implementation of cloud services, Indonesia can expect US$10.7 Billion to pour into its economy over the next 5 years.

The cloud industry currently has a CAGR of 25%.

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Investment From Big Tech Companies Further Stimulates Economy

The growing investments from big tech companies also have other benefits on Indonesia’s economy.

Startups now have cheaper access to data and computing services.

Moreover, during the pandemic, SME’s in Indonesia have also reported an increase in cloud computing usage which aided new revenue channels for businesses.

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