Market Value for Data Center Industry in Indonesia

Indonesia is the most populous country number four on earth. The population is counted more than 250 millions. The people in Indonesia are using social media quickly. That’s why the need of data center in Indonesia is growing high. In the next years, there will the rise of the data center amount. Moreover, it is not a big surprised that later on many technology providers are created based on that opportunity. Even the international analyst company is assuming that there will be the growth until two digits for Indonesia’s cloud market until the end of 2016. However, some are not persuaded at country’s fitness in establishing data center infrastructure. They don’t really rely that the demand can be fulfilled. 

Market Value for Data Center Industry in Indonesia

The current data center ranking put Indonesia in number three from bottom for the quickest growing Asia Pacific areas. Indonesia is in almost the bottom level because of the suitability for data center. Then what makes Indonesia hold back? 

Power and connectivity

Most of the challenges which should be considered as the key is the network infrastructure and the power supply. In Indonesia, they will be the problems because there are lacks of network infrastructure and the power supply is unstable. Moreover, all the things are back to the government. Comparing to Malaysia, Malaysian government help the data center providers there to get the fund for infrastructure especially in rural areas. They provide the data center even in a place where it may be difficult to get feasible commercial. On the other hand, the data center provider such as Telkom in Indonesia is mostly owned by the state. Telkom only relays on its own resources to maintain. Moreover, the power supply in Indonesia is not really reliable.

This year in May, PLN the state-owned company broadcast that there was a series of blackout in Jakarta and Tangerang. The blackout was rolling due to the shortfalls of gas power supply station. The power supply was considering deficit for more than half as usual amount. Actually, the power supply problems in Indonesia can be solved. It can be solved by building the specific industrial parks for the private electricity company. This private facility is used to enhance the power from the national company. It can be said as the backup. However, not all location can apply this choice and there will be rise of the price as well.

Approach to outsourcing

If the problem with recent infrastructure is putting aside, here comes another problems about the outsourcing. Most people see that the increasing to hire workers is also problem in Indonesia. The outsourcing is just for getting contract workers. However, the survey indicates that more than 70% of companies like better to get the fixed data center. The companies consider some things like security, performance, trust and the availability. The contractors can lead to the skill deficit. This situation makes the lack of trained workers. Moreover, the data center companies will find it hard to get the professionals with skills the company requires. The data center operators will be lack of workers as workers are in and out quickly.

Chances sign

It can be said that Indonesia has the advantages for operators. Different with other countries which have strict direct the power market, Indonesia tolerates the land owners in building the power plants to maintain the usage for their own. Just like in Jakarta, there is a four-hectare land which can be built up to eight data centers and they will be powered only by one power station. This is going to reduce the risk of instability of power and power shortage in the location. Moreover, the land which is available and affordable can be easily found in Indonesia. Then in building the facilities will not be hard as well. Some people will say that it is easy and cheap to have data center in Indonesia. It is different from Singapore which you cannot easily find the location. Most importantly, there is the demand of internet usage because of the mobile apps.

The future ahead

The data center companies in Indonesia are still growing and growing. The growth is expected to be higher. It is like Indonesia continues the path of the neighbor countries such as Malaysia, Hong Kong and Singapore. The government in Indonesia doesn’t support the increasing of the data center beneath the country. The problem is mostly from the government. Of the government supports and regulate the network markets well, and then the problem can be easily solved. Moreover, the open chances for the foreign investor are also beneficial. It can extend more on the connectivity. Then it can decrease the international connectivity price and provide better connections throughout the country. Many people will get the advantages from this because of course it will be big opportunities to get job. Furthermore, the government can be helped a lot to develop the country.

For all those reasons, that is why you have to build data center in Indonesia immediately before it begins too much such in Singapore. Better star now as fast as you can to enter data center business in Indonesia.