The Increasing Number of Internet Users and Digital Services Proliferating Growth
The expansion in the quantity of internet and digital services has happened around the world, and Indonesia is no exception. The significant increasing number of internet users and the advancement of online technologies have driven many companies to offer their products through the internet. Indonesia is heavily reliant on data centers due to its high internet penetration. This has brought large-scale processing and digital application development which requires large data centers and cloud technologies. For instance, according to the Indonesian Internet Providers Association’s (APJII) annual survey, there are 210 million internet users in 2022 out of 272 million total population in Indonesia, accounting for a penetration rate of 77.02 percent as of the first quarter of 2022. Moreover, the country’s 79% of respondents use the internet for online transactions, while 72% accessed financial services. The growth in internet users and digital applications for various services are proliferating the digital transformation, smart phone adoption in the country. Therefore, enterprises are relying more on establishing data centers as this increasing digital advancement creates huge amounts of data, which is required to be stored and processed. Thus, the increasing number of internet users and digital services has proliferated the demand for data centers in the Indonesia market.
Rapid Adoption of Cloud and Digital Transformation by Companies
Indonesia’s digital journey is growing at a remarkable pace since the adoption of cloud services in the country. Due to the rapid pace of technological advancement, Indonesia is trying harnessing digital technologies to reap significant economic benefits in the long run. Several cloud service providers from across the world have revealed their availability zones and the data scrubbing center in Indonesia, particularly in locations like Jakarta and multiple regions since they have strong fiber connection in addition to being close to clients. Availability zones (AZs) are being built by BDx Indonesia, Amazon Web Services (AWS), Huawei Cloud and many more to support high availability (HA), while maintaining low latency. Google Cloud has announced its plan to open its first cloud region in Indonesia, aiming to accelerate the country's next stage of digital economic development and to overcome the traditional barriers for cloud adoption in Indonesia. While most of the large enterprises have already accelerated cloud adoption, medium-sized companies and small companies have also embarked on their cloud journey. Moreover, several investments by the enterprises in cloud and digital journey are aiding in developing the cloud infrastructure in Indonesia. For instance, recently Amazon Web Services (AWS), the cloud arm of major U.S e-commerce group announced the investment of USD5 billion in Indonesia over the next 15 years to accelerate cloud adoption and digital transformation including the construction of more data centers. Moreover, the development of 5G infrastructure, AI, robots, and the explosion in data-intensive industries like edge computing and the Internet of Things (IoT) have all enjoyed full support of the Indonesian government. All these industries produce massive volumes of data, the majority of which must go through some sort of data center. Furthermore, many enterprises are heading towards remote working, which is also driving the demand for cloud computing as cloud-managed services are a vital part of digital transformation, and their demand will further expand in the recent years. The government's efforts to transform Indonesia into a global data hub have resulted in several regulations and reforms that have given the essential framework for this expansion, and many new firms are likely to enter the market in the upcoming years. Therefore, the rapid adoption of cloud and digital transformation by companies is attributing to the growth of Indonesia data center market.
Growth in Renewable Energy & Infrastructure
Data centers are one of the major infrastructures which require huge amount of energy consumptions. Many enterprises may feel challenges before establishing data centers due to their high energy consumption. Although Indonesia is the world's fourth-largest producer of coal and the world's top exporter of the fuel, the government has been supporting renewable energy to lessen its reliance on fossil fuels and overcome the demand for energy requirement. In Indonesia, there is a growing need for and potential for renewable energy. Moreover, as Indonesia accounts for 40% of the ASEAN's region's energy consumption, the country's demand for energy is predicted to increase by 80% by 2030. Moreover, Indonesia has a lot of potential for renewable energy sources including geothermal, solar, wind, hydropower facilities, biomass, and more. By 2025, the Indonesian government intends to use renewable energy sources to meet 23% of its domestic energy needs. This goal was set to minimize greenhouse gas (GHG) emissions and reach carbon neutrality by the year 2060. The National Grand Energy Strategy (GSEN), the PLN Electricity Development Plan, and other government initiatives have helped to build new on-grid NRE capacity. These initiatives, combined with an increase in the setup facilities and installations of renewable energy infrastructure, have also allowed the service providers to establish data centers for growing digital economy. Hence, the growth in renewable energy & infrastructure is offering robust opportunities for the Indonesia data center market.
Market Segmentation
Indonesia
Company Profiles
NTT Communications Corporation, PT Omadata Padma Indonesia, GTN Data Center, PT. Sigma Cipta Caraka (Telkomsigma), PT DCI Indonesia, Space DC Pte Ltd, IDC Indonesia, Equinix Inc., Princeton Digital Group, PT CBN Nusantara (NEX Datacenter
| Attribute | Details |
| Base Year | 2022 |
| Historical Years | 2018 – 2021 |
| Estimated Year | 2023 |
| Forecast Period | 2024 – 2028 |
| Quantitative Units | Revenue in USD Million and CAGR for 2018-2022 and 2023E-2028F |
| Report Coverage | Revenue forecast, company share, growth factors, and trends |
| Segments Covered | Solution Type End-User |
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| Regional Scope | Java, Sumatra, Kalimantan, Bali, Rest of Indonesia |
| Key Companies Profiled | NTT Communications Corporation, PT Omadata Padma Indonesia, GTN Data Center, PT. Sigma Cipta Caraka (Telkomsigma), PT DCI Indonesia, Space DC Pte Ltd, IDC Indonesia, Equinix Inc., Princeton Digital Group, PT CBN Nusantara (NEX Datacenter) |
| Customization Scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and Purchase Options | Avail of customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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