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Indonesia to be Asia-Pacific’s fastest-growing IT market: Report
The country’s IT spending is expected to experience a 13 percent compound annual growth rate (CAGR) over the next few years, bringing the value of the sector to US$6 billion by 2024, according to a report by Boston Consulting Group (BCG) and technology company Cisco published on Tuesday.
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An Alibaba Cloud data center is pictured in an unknown location at an unknown time. The cloud provider is tight-lipped about the whereabouts of its data centers in Indonesia. (Alibaba/Alibaba)
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ndonesia is expected to lead Asia-Pacific in IT spending over the next four years, driven by a strong shift toward cloud-related services as the COVID-19 pandemic prompts local enterprises to digitalize their operations.
The country’s IT spending is expected to experience a 13 percent compound annual growth rate (CAGR) over the next few years, bringing the value of the sector to US$6 billion by 2024, according to a report by Boston Consulting Group (BCG) and technology company Cisco published on Tuesday.
India is expected to experience the second-fastest growth with a 12 percent CAGR, then Malaysia with a 10 percent CAGR over the same period, read the report, citing Gartner data.
“Indonesia is the fastest-growing IT market in Asia Pacific, Japan and China,” said Cisco ASEAN president Naveen Menon on Tuesday.
The COVID-19 pandemic has boosted demand for cloud services in Indonesia as mobility restrictions have compelled companies to accommodate a remote workforce and serve greater online demand.
Amid the restrictions, office occupancy rates have been limited and online activity has surged as housebound citizens rely on online platforms to buy goods, hold meetings and attend school.
Gartner predicts that of the country’s total IT spending in 2024, 52 percent will be for public cloud services, while the remaining 48 percent will be for on-site IT infrastructure.
