20 Feb Cloud Readiness Index 2016 – Indonesia #11 (Climbs from CRI 2014’s 12th ranking)
Data residency and protectionism stymie cloud adoption
Improvements in many parameters sees Indonesia climb back up to 11th place after dropping to 12th place in 2014. In fact, Indonesia is a consistent scorer in this year’s CRI, ranking between 8th and 12th place in every parameter of CRI 2016. The improvements seen in cloud readiness and adoption are led by private sector innovation, as a growing online population continues to demand more robust digital services. Currently, only 15.8% of the population is using the Internet. As this grows through the use of mobile devices, an increasing number of Indonesians will access cloud services and participate in the digital economy.
However, the CRI indicates insufficient efforts to overcome the challenges of developing sufficient broadband infrastructure as the proportion of Indonesians online increases. Data centre risk and regulatory environment and use scores drop this year, and per-user international connectivity has deteriorated year-on-year. Cloud service localisation and the expansion of physical cloud infrastructure, and in particular mobile Internet access to the more remote areas of the country, are big hurdles facing Indonesia.
A coordinated plan to tackle the needs of the digital economy would aid Indonesia’s cloud readiness plans. Responsibility for coordinating across organisations when drafting regulations that converge across ministry silos – such as the new e-commerce framework, which spans the trade and ICT ministries, and also involves the private sector – should be clearly delineated to reduce business uncertainty.
Recent Government Legislation and gCloud/gICT Developments
- E-Commerce Framework: A new bill proposing an E-Commerce Framework released in Feb 2016.
- Government opens e-commerce to investment: KOMINFO is in discussion with the Investment Coordination Board (BKPM) to open up e-commerce to foreign investment. Under the current law, e-commerce businesses need to be wholly owned by local players and foreign funding can only come in as loans and not equity.
- Protection of Personal Data: KOMINFO released a draft of a proposed law on the protection of personal data in electronic systems.
- Law on Cybersecurity expected: A cybersecurity law and a new cybersecurity agency are being planned.
- E-Sabak for e-education: This programme will equip all teachers and students with tablets for education.
“Our young, mobile-first millennials are readily making use of cloud services. The challenges for us in Indonesia are to develop a sufficient capacity throughout the archipelago to support the aspirations of the next generation for a high speed and meaningful Internet services.”
– Mr Eddy Thoyib, Executive Director, MASTEL Indonesia, Indonesia ICT Society