Indonesia’s position as the largest economy in Southeast Asia has fueled its rise in the Cloud Computing, and Datacenter industry. Coupled with relatively low startup and operational costs, the country is rivaling traditional Cloud Computing, Cybersecurity, and Datacenter hubs. Datacenters in Jakarta alone are set to witness a compound annual growth rate (CAGR) of 21.8% in the years 2019-2024 , the highest for any city in Southeast Asia (Cushman & Wakefield Datacenter Report 2019).
The central government’s decision to enact and relax Data Sovereignty Laws, has served as a framework for the industry at large. Strict data localization laws, once created a regulatory structure that drove demand. However, the subsequent move to ease legal restrictions, and the continued robust demand, has reassured the major players in the industry. Fears of a market crash were quickly allayed. This flexibility and willingness to evolve makes Indonesia distinct from many of its closest competitors. International heavyweights in public cloud such as Alibaba Cloud, Amazon Web Services (AWS), and Google Cloud have recognized this tremendous growth potential of the country and seized the chance to open datacenter operations within the country.
Though Cloud Computing expansion remains on an upward trajectory, power infrastructure is still an issue throughout the country. Latency arises as a major stumbling block to the massive Cloud Computing growth lying within reach. Additionally, Indonesia’s decision to shift its capital opens the field up to a vast number of new entrants. The plan to move the administrative heart of the country to Borneo, presents an opportunity for businesses to work together with governmental organizations, and embark on Digital Transformation and Cloud Migration strategies. The degree of changes in Indonesia necessitates an in-depth analysis of the different strategic directions available for companies in the market.
Keep watch – W.Media will commence its 2020 survey for the Indonesia market in Q3.
Visit the Indonesia Cloud and Datacenter Convention here.