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Cloud computing could add $10 billion to GDP: PwC
Cloud computing technology could increase Indonesia's gross domestic product (GDP) over the next five years and spur other trickle-down benefits.
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An illustration of cloud computing. (Shutterstock/Blackboard)
I
ndonesia could add US$10.7 billion to its gross domestic product (GDP) between 2021 and 2025 if the country adopted cloud computing, a PricewaterhouseCoopers (PwC) study shows.
PwC's study suggests that cloud computing would improve productivity through cost or time reductions to increase sectoral value-add and output levels. The study was adapted from a 2020 Centre for Strategic and International Studies (CSIS) study.
PwC Indonesia environmental, social, governance (ESG), government and infrastructure advisor Julian Smith said the benefits of cloud computing included creating more jobs and improving public services through efficient health care and education.
“Cloud computing plays an important role in generating economic value and can have a positive environmental impact by reducing the need to travel,” he said on Tuesday.
Smith added that large-scale adoption of cloud computing was also expected to save energy by consolidating computing resources from individual data centers to the cloud provider’s data centers.
The PwC study, titled The Impact of Cloud Computing on the Indonesian Economy, showed that 89 percent of small and medium enterprises (SMEs) already use cloud computing while 9 percent of respondents said they were planning to use it in the near future.
As much as 84 percent of SMEs that already use cloud computing reported that their revenue had increased 20 percent or more. The increase varies based on the type of industry in which they operate, with the business service sector experiencing the greatest improvement.
