INDONESIA CLOUD COMPUTING MARKET

Indonesia Cloud Computing Market Size

Indonesia Cloud Computing Market size reached USD 3.3 billion in 2024 and is estimated to reach USD 13.4 billion in 2032 and the market is estimated to grow at a very high CAGR of 19.1% from 2025-2032.

Indonesia Cloud Computing Market Dynamics

Market Drivers

Growing Adoption of Cloud across Large, Medium and Small Businesses

There has been increased adoption of cloud computing by small and medium enterprise across Indonesia. More than 90% of the companies operating in Indonesia fall into this category and are increasingly focusing towards reducing their Capital Expenditure (CAPEX) and Operational Expenditure (OPEX).

Small and medium businesses are investing substantially on cloud deployments as it will facilitate rapid business analytics and artificial intelligence. For instance, the demand for software as a service such as Microsoft 365 is gaining prominence among the small and medium businesses.

Organizations across Indonesia are moving towards cloud wherein cloud is the major enabler and platform supporting digital technologies. Indonesia being the fourth largest populated country in the world, the country smartphone adoption rate is projected to reach 89% by 2025 from 71% in 2018, smart as per GSM Intelligence. In Indonesia people spend more time on mobile phones when it compares to its peer countries driving demand for cloud storage and other cloud services. In Indonesia, the internet penetration touched 79% in 2024 as per World Economic Forum reflects the swift adoption of online platforms by Indonesian

Organisations are increasingly deploying cloud owing to its various benefits such as enhanced security, increased flexibility, among others. According to Telekom, by 2025 Indonesia digital economy will achieve USD 133 bn and in 2030 top 10 digital economy.

Challenges Faced by Market Players

The cloud computing market presents numerous security issues and challenges. In the cloud, the data is stored with a third-party provider and is accessed over the internet. This factor has increased complexity related to the security of data and following compliance while securing the same information. Additionally, the rapid growth and implementation of the cloud computing in the companies has given rise to issues related to account hijacking. All these factors are likely to hamper the growing demand of the Indonesia cloud computing market.

Indonesia Cloud Computing Market Segment Analysis

Indonesia Cloud Computing Market by Service Model Insights: SaaS service model holds the largest market share

Based on Service Model, the Software as a Service segment accounted for the highest revenue share in 2024 owing to the increasing emphasis of the Indonesia government on supporting the adoption of SaaS in the country. Moreover, growing adoption of Software as a Service by the small and medium enterprises in the country is fuelling the market growth. Currently, the SMEs accounts for more than 90% of the market in Indonesia and are increasingly opting for SaaS products in order to avoid large-up front licensing fees and huge capital costs. The SaaS offers beneficial cost saving as it usually resides in a shared or multi-tenant environment, wherein the license cost of hardware and software is comparatively low to the traditional model. Moreover, SaaS offerings are easy to use, reduces the time spend on installation, and provides scalability.

Indonesia Cloud Computing Market by Deployment Model Insights: Public Cloud segment captured the highest revenue share

Based on deployment, the public cloud segment accounted for the highest revenue share in 2021. This is majorly due to the increasing demand for the public cloud by industries such as telecommunications, manufacturing, retail among others. Leading organizations in Indonesia are shifting their applications and workloads to the public cloud platforms due to the rising concerns related to security. The public cloud services are being increasingly used by SMEs and other businesses due to its lower cost as compared to the traditional data center and private clouds services. This factor is expected to attract a large customer base into the Indonesia public cloud market during the forecast period.

Indonesia Cloud Computing Market Major Players & Competitive Landscape

Major players operating in the Indonesia Cloud Computing market, include, Google, Microsoft, Intel, IBM, AWS, Oracle, Salesforce, Adobe, VMware, Alibaba among others.

Indonesia Cloud Computing Market News

• • In April 2024, Throughout the next four years, Microsoft will invest USD 1.7 billion in cloud infrastructure and Artificial Intelligence (AI) in Indonesia. For 29-year history of the company in Indonesia, this will mark as its largest single investment.
  • In 2021, AWS strategically announced the launch of Amazon CloudFront, in Indonesia, which is a network offered by the company and is expected to improve 30% in first-byte latency.
  • In 2021, Microsoft announced to launch its first data centers in Indonesia, which is a strategic plan to enter the Indonesian cloud market, as the country is the leading cloud market in the South-East Asia. This is mutually beneficial for both, the company and the country, in the context of cloud expansion.
  • In 2021, Alibaba Cloud announced that the company planned to invest USD 1 billion for cloud across the Asia-Pacific which includes Indonesia as well. This strategic investment will also boost the Southeast Asia cloud computing market.

Indonesia Cloud Computing Market Scope of the Report

Indonesia Cloud Computing Market Research Report Segmentation

The Indonesia Cloud Computing market has been segmented on the basis of Service Model, Deployment Model, Organization Size and Industry Vertical. Based on the service model, the market has been segmented into Infrastructure as a Service, Platform as a Service, Software as a Service. Based on the deployment model, the market has been segmented into Public Cloud, Private Cloud and Hybrid Cloud. Based on the organization size, the market has been segmented into Small and Medium Enterprises and Large Enterprises. Based on industry vertical, the market has been segmented into Manufacturing, Healthcare and Life Sciences, IT & Telecom, Retail and Consumer Goods, Energy and Utilities, Media and Entertainment, BFSI, Government and Public Sector and Others

Indonesia Cloud Computing Market by Service Model

• • Infrastructure as a Service
  • Platform as a Service
  • Software as a Service

Indonesia Cloud Computing Market by Deployment Model

• • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Indonesia Cloud Computing Market by Organisation Size

• • Small and Medium Enterprises
  • Large Enterprises

Indonesia Cloud Computing Market by Industry Vertical

• • Manufacturing
  • Healthcare and Life Sciences
  • IT & Telecom
  • Retail and Consumer Goods
  • Energy and Utilities
  • Media and Entertainment
  • BFSI
  • Government and Public Sector
  • Others

Indonesia Cloud Computing Market Leading players

• • Google
  • Microsoft
  • Intel
  • IBM
  • AWS
  • Oracle
  • Salesforce
  • Adobe
  • VMware
  • Alibaba