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Is Indonesia a potential market for Amazon Web Services to do cloud computing business?

Amazon Web Services - the cloud branch of the US e-commerce giant Amazon has launched the first cloud infrastructure area in Indonesia and they have a plan to invest 5 billion USD in this country in the next 15 years.

The Logistician by The Logistician
02/01/2022
in Blog
Is Indonesia a potential market for Amazon Web Services to do cloud computing business?

Image: Hai Ngoc

HIGHLIGHTS

  • AWS (Amazon Web Services) in Indonesia is considered the second-largest active cloud infrastructure region in Southeast Asia.
  • Indonesia is home to extremely potential end-user customers with the world’s 4th largest population.
  • Đối thủ cạnh tranh lớn nhất của AWS tại quốc gia này là Alibaba Cloud. 

FULL ARTICLE

AWS (Amazon Web Services) in Indonesia is considered the second-largest active cloud infrastructure region in Southeast Asia, after Singapore, and ranks 26th globally. This means that businesses large and small that work with AWS can run their applications to serve their end customers using advanced AWS technologies.

AWS bets big on cloud infrastructure development in Indonesia

Currently, AWS has planned to invest about 5 billion USD in the development of cloud infrastructure in Indonesia which includes building more data centers.

Indonesia – potential market

Indonesia is home to extremely potential end-user customers with the world’s 4th largest population. According to some experts, the demand for data centers in Indonesia is driven by the growing adoption of local and international businesses for cloud-based services and is underpinned by technological advances. In addition, due to the impact of the Covid-19 epidemic, some corporations are moving towards remote working, which is also driving the demand for cloud computing. As a result, Indonesia is currently one of the hottest regions for data centers and cloud services in Asia.

Besides, Indonesia is also a high-income country in the cloud business in Southeast Asia. Last year, Indonesia brought in $600 million from the cloud business, just behind Singapore with $1.8 billion. It is forecasted that by 2025, the country’s revenue will more than triple.

AWS expansion in Indonesia will create 24,700 local jobs including construction, facility maintenance, engineering, and telecommunications. Over the next 15 years, AWS is forecast to contribute more than $10.9 billion to Indonesia’s gross domestic product.

AWS’s market expansion in Indonesia will open up nearly 25,000 job opportunities and contribute more than $10.9 billion over the next 15 years

Prasad Kalyanaraman, AWS Vice President of Infrastructure Services, said that having AWS operating in Indonesia will help organizations, innovative startups, and the world’s leading companies deliver applications cloud-based applications to drive economic development across the country.

Some of the big and successful AWS cloud customers include Halodoc, a health technology startup that has seen a significant increase in traffic during the pandemic and Indonesian media and real estate conglomerate MNC Group, which has made breakthroughs in the field of digital banking. Other local customers include e-commerce group Tokopedia, unicorn travel website Traveloka, delivery company SiCepat and state-owned post office Pos Indonesia.

Many competitors

Indonesia is a promising market, so there have been many companies involved in the cloud computing field before. AWS’s biggest competitor in the country is Alibaba Cloud – the cloud computing arm of Chinese internet conglomerate Alibaba and the first company to come to Indonesia. Currently, Alibaba Cloud has three data centers here.

Indonesia is a promising market, so there have been many companies participating in the cloud computing field before

In addition, Tencent Holdings, another Chinese internet conglomerate, also launched its first local data center in April and has announced plans to set up a second one shortly. Google Cloud last year launched in the Jakarta region to localize its cloud services to Indonesian customers by partnering with local data center operators after having previously used the centers in another country. Other foreign technology companies such as Japan’s Nippon Telegraph & Telephone, Singapore’s Keppel DC and Princeton Digital Group have also joined.

In response to the explosion of the cloud business, local companies also refused to stay out of the game. Accordingly, the Data Center Indonesia company and the country’s largest telecommunications company – Telekomunikasi Indonesia have entered this field of cloud computing.

Phan Quyen

Amazon: AWS applications stop working, goods pile up

Source: Doanh nghiệp Hội nhập
Tags: Amazon Web ServicesCloud ComputingIndonesia Market

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