Amazon’s cloud service unit to invest almost $1 billion in Indonesia

Reading Time: 1 minute

American IT giant Amazon is planning a 14 trillion-rupiah ($945 million) investment in Indonesia, according to The Straits Times, which referred to local news reports. The plan was revealed to Indonesian President Joko Widodo by Amazon Vice-President Werner Vogels during their meeting in Jakarta on September 21.

The investment will be spread over a ten-year period. It will see the introduction of the firm’s cloud computing unit, Amazon Web Services, to the Indonesian market.

Cloud computing generally refers to hosting services and applications over the Internet on a pay-for-use basis, and the platform is seen as a key pillar for the growth of Indonesia’s vibrant start-up scene. According to market research firm Statista, cloud computing spending in Indonesia is expected to hit $1.3 billion by this year, up from just $160 million in 2012.

But Amazon will face stiff competition from its Chinese rival Alibaba which opened its data center – the first by a major cloud service provider – in Indonesia earlier this year as part of the company’s plan to support local start-ups in the country.

Alibaba has also invested $1.1 billion in Indonesia’s e-commerce unicorn Tokopedia, and already owns Lazada, another online shopping business in Southeast Asia.

The digital economy in the region is projected to be worth more than $200 billion by 2025, with Indonesia – Southeast Asia’s largest economy – expected to make up the lion’s share of that market.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

American IT giant Amazon is planning a 14 trillion-rupiah ($945 million) investment in Indonesia, according to The Straits Times, which referred to local news reports. The plan was revealed to Indonesian President Joko Widodo by Amazon Vice-President Werner Vogels during their meeting in Jakarta on September 21.

Reading Time: 1 minute

American IT giant Amazon is planning a 14 trillion-rupiah ($945 million) investment in Indonesia, according to The Straits Times, which referred to local news reports. The plan was revealed to Indonesian President Joko Widodo by Amazon Vice-President Werner Vogels during their meeting in Jakarta on September 21.

The investment will be spread over a ten-year period. It will see the introduction of the firm’s cloud computing unit, Amazon Web Services, to the Indonesian market.

Cloud computing generally refers to hosting services and applications over the Internet on a pay-for-use basis, and the platform is seen as a key pillar for the growth of Indonesia’s vibrant start-up scene. According to market research firm Statista, cloud computing spending in Indonesia is expected to hit $1.3 billion by this year, up from just $160 million in 2012.

But Amazon will face stiff competition from its Chinese rival Alibaba which opened its data center – the first by a major cloud service provider – in Indonesia earlier this year as part of the company’s plan to support local start-ups in the country.

Alibaba has also invested $1.1 billion in Indonesia’s e-commerce unicorn Tokopedia, and already owns Lazada, another online shopping business in Southeast Asia.

The digital economy in the region is projected to be worth more than $200 billion by 2025, with Indonesia – Southeast Asia’s largest economy – expected to make up the lion’s share of that market.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid