Indonesia IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Indonesia’s trajectory is influenced by explosive digital-economy growth and rising adoption of AI-driven services (Sep-2023). These trends have elevated demand for local, low-latency cloud regions capable of supporting payments, e-commerce, and video workloads. A defining example is the country’s fast-growing sovereign cloud posture, reinforced by hyperscaler DC expansions around Jakarta and Batam, which allow enterprises to localize sensitive data while maintaining elasticity.

Industry Progression: A major progression indicator came in Nov-2023 when Google Cloud expanded services in its Jakarta region, enabling broader product availability for analytics and container workloads. This enhancement reduces latency for fast-scaling enterprises, expands AI-access capacity, and pushes domestic competitors to accelerate their own DC upgrades to keep pace.

Industry Player Insights: In Indonesia, providers include Google Cloud, Amazon Web Services, Alibaba Cloud, and Telkomsigma. Telkomsigma’s Oct-2023 modernization of its Cikarang DC added new power systems and security controls, improving reliability for enterprise workloads and intensifying competition with global providers.