Cloud Computing Market in Indonesia Set to Reach USD 1.38 Billion by 2025 as Rakuten and Alita Push Edge AI Adoption
Jakarta: Cloud-based digital transformation is no longer merely an option but a fundamental necessity. An IDC Indonesia report (2024) indicates that the public cloud market in Indonesia is projected to reach a value of USD 1.38 billion (Rp 22.48 trillion) by 2025, with annual growth of 20.5 per cent. Alongside this, cloud computing penetration in Indonesia is expected to grow to 75 per cent, driven by demand for digital transformation in both the public and private sectors.
However, cloud adoption also presents challenges, including dependence on legacy IT infrastructure, high costs of traditional virtualisation platforms, data sovereignty and compliance issues, and the need for distributed infrastructure to support modern workloads such as AI and IoT.
To address these challenges, Rakuten Symphony, in collaboration with national systems integrator PT Alita Praya Mitra, held a seminar entitled "Resilient Edge Computing for Data Sovereignty & Modern AI Workloads" in Jakarta. The event was attended by various stakeholders in the technology industry, including the Director General of Digital Ecosystem at the Ministry of Communications and Digital (Komdigi), Edwin Hidayat Abdullah, and Komdigi's Director of Artificial Intelligence and Emerging Technology Ecosystem, Aju Widya Sari.
During the panel discussion, Edwin Hidayat Abdullah emphasised the importance of equity in digital economic development. "Digital economic development must also uphold the principle of fairness. We must ensure it is not just about new technology without incentives for data centres or infrastructure," he said.
Teguh Prasetya, President Director of Alita and Chairman of the Indonesian Internet of Things Association (ASIOTI), stated that Alita is now focused on strengthening edge platforms, IoT, and smart solutions for the government, manufacturing, and public services sectors. "We believe our partnership with Rakuten will accelerate the broader adoption of cloud-native and edge AI," he affirmed.
Global Head of Sales at Rakuten Symphony Inc, Udai Kanukolanu, explained that Rakuten aims to accelerate digital service adoption in Indonesia by combining Alita's local expertise and infrastructure with global innovation from Rakuten Symphony, OSS, and open RAN. "This initiative aligns with Indonesia's vision of future digital empowerment, driving economic growth and technological advancement," he said.
SVP of Rakuten Cloud, Anirban Chakravartti, also highlighted the urgent need for edge computing and AI in an era of data speed and regulatory demands. "Rakuten designs cloud-native infrastructure capable of running AI workloads at the edge, with automated orchestration and multi-layered security," he explained. Anirban also revealed that 83 per cent of organisations plan to run AI/ML at physical locations to improve operational efficiency.
Data sovereignty was also a key concern in the discussion. Prof Dr Hammam Riza, Chairman of the Artificial Intelligence Industry Research and Innovation Collaboration (KORIKA), emphasised the urgency of building infrastructure that supports data sovereignty. "With locally developed edge-native cloud, we can ensure that AI and digital data serve the nation's interests, rather than merely becoming consumers of foreign solutions," he said. Hammam also highlighted data breach issues and security threats in AI utilisation.
The seminar also featured leaders from Lintasarta and XL Smart to discuss sovereign cloud roadmaps, container and VM integration within a single Kubernetes platform, and hybrid strategies that can be implemented.
However, cloud adoption also presents challenges, including dependence on legacy IT infrastructure, high costs of traditional virtualisation platforms, data sovereignty and compliance issues, and the need for distributed infrastructure to support modern workloads such as AI and IoT.
To address these challenges, Rakuten Symphony, in collaboration with national systems integrator PT Alita Praya Mitra, held a seminar entitled "Resilient Edge Computing for Data Sovereignty & Modern AI Workloads" in Jakarta. The event was attended by various stakeholders in the technology industry, including the Director General of Digital Ecosystem at the Ministry of Communications and Digital (Komdigi), Edwin Hidayat Abdullah, and Komdigi's Director of Artificial Intelligence and Emerging Technology Ecosystem, Aju Widya Sari.
During the panel discussion, Edwin Hidayat Abdullah emphasised the importance of equity in digital economic development. "Digital economic development must also uphold the principle of fairness. We must ensure it is not just about new technology without incentives for data centres or infrastructure," he said.
Teguh Prasetya, President Director of Alita and Chairman of the Indonesian Internet of Things Association (ASIOTI), stated that Alita is now focused on strengthening edge platforms, IoT, and smart solutions for the government, manufacturing, and public services sectors. "We believe our partnership with Rakuten will accelerate the broader adoption of cloud-native and edge AI," he affirmed.
Global Head of Sales at Rakuten Symphony Inc, Udai Kanukolanu, explained that Rakuten aims to accelerate digital service adoption in Indonesia by combining Alita's local expertise and infrastructure with global innovation from Rakuten Symphony, OSS, and open RAN. "This initiative aligns with Indonesia's vision of future digital empowerment, driving economic growth and technological advancement," he said.
SVP of Rakuten Cloud, Anirban Chakravartti, also highlighted the urgent need for edge computing and AI in an era of data speed and regulatory demands. "Rakuten designs cloud-native infrastructure capable of running AI workloads at the edge, with automated orchestration and multi-layered security," he explained. Anirban also revealed that 83 per cent of organisations plan to run AI/ML at physical locations to improve operational efficiency.
Data sovereignty was also a key concern in the discussion. Prof Dr Hammam Riza, Chairman of the Artificial Intelligence Industry Research and Innovation Collaboration (KORIKA), emphasised the urgency of building infrastructure that supports data sovereignty. "With locally developed edge-native cloud, we can ensure that AI and digital data serve the nation's interests, rather than merely becoming consumers of foreign solutions," he said. Hammam also highlighted data breach issues and security threats in AI utilisation.
The seminar also featured leaders from Lintasarta and XL Smart to discuss sovereign cloud roadmaps, container and VM integration within a single Kubernetes platform, and hybrid strategies that can be implemented.