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Home Feature News

AWS report: a cloud adoption can uplift Indonesia’s MSME productivity at $5.1 billion

The report also disclosed that cloud adoption for MSMEs could unlock around 17.6 million job opportunities in multiple sectors.

Syifa by Syifa
October 9, 2023
in Feature News, News
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cloud adoption

Illustration of cloud adoption

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Heaptalk, Jakarta — Cloud technology has been widely adopted by various business practitioners in the archipelago, particularly MSMEs, to increase business efficiency and security.

As disclosed by the latest report of Amazon Web Services (AWS), in collaboration with Accenture, Indonesia’s MSMEs who operate the cloud-based technology can increase their business productivity by up to US$5.1 billion (around Rp79.6 trillion), or approximately 141% by 2030.

Also, the data demonstrated that around 29% of MSME businesses in Indonesia utilized a simple cloud platform, such as web-based email services and cloud-based storage. Compared with other members of the Organization for Economic Co-operation and Development (OECD), which are classified as developed countries, this report indicates that technology adoption at the middle level, such as Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), or advanced cloud implementation, such as generative AI and machine learning, are estimated to be much lower.

Aaron Hill, Managing Director of Economic Insights of Accenture Strategy and Consulting, revealed, “The most basic cloud technology has its benefits. However, MSMEs still have a significant opportunity to increase cloud adoption to respond to diverse societal obstacles. With high government and industry support, these business actors can utilize transformative technology, such as generative AI, to boost economic productivity.”

A cloud-backed MSME in providing society’s accessibility

On the other hand, the report also revealed another significant impact of MSMEs who implemented cloud technology by unlocking around 17.6 million job opportunities in multiple sectors, such as healthcare, education, and agriculture services. This output is equivalent to 12% of the job vacancy in the country.

In the healthcare services industry, the MSMEs empowered by the cloud are claimed to resolve the limited access to health services in rural areas. This report estimated that cloud implementation can bolster MSMEs and increase productivity by up to US$386 million, equal to Rp6 trillion in this industry, and support around 7 million telehealth consultations in the country by 2030.

Furthermore, regarding the education industry, local MSMEs powered by the cloud could also open up education accessibility through the digital platform. The report predicted that MSMEs can generate up to US$966 million (around Rp15 trillion) annually by providing e-learning to 21 million students in Indonesia by 2030.

In the agricultural sector, cloud-powered MSMEs can overcome the problem of food shortages, primarily through cloud technology that prioritizes data, such as AI solutions. This report shows that MSMEs can generate up to US$3.8 billion (around Rp59.1 trillion) annually. Concurrently, the data also shows that about 1 in 9 farms, livestock, and fisheries will use precision agricultural solutions, which will also increase productivity in the next seven years, an increase of approximately 300%.

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