CSIS: Cloud Technology Could Contribute Rp35 Trillion to Indonesia's GDP

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Cindy Mutia Annur 25/08/2022 17:20 WIB

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According to research by the Centre for Strategic and International Studies (CSIS), cloud service adoption could contribute up to Rp 35 trillion to the Indonesian economy.

The Contribution of Cloud Adoption in Public Institutions to Indonesia's GDP (2022)

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The Contribution of Cloud Adoption in Public Institutions to Indonesia's GDP (2022)

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According to the Centre for Strategic and International Studies (CSIS), the adoption of cloud computing technology in Indonesian public institutions remains low.

However, CSIS research found that cloud services could contribute up to Rp35 trillion to the Indonesian economy.

CSIS calculated that a 2% increase in productivity from cloud use, or total factor productivity (TFP), in the public sector could increase the gross domestic product (GDP) by up to 0.03%.

Furthermore, a 10% increase in TFP in the public sector could increase GDP by 0.15%.

A 10% increase in TFP in the public sector, education sector, and private health sector could increase GDP by up to 0.37%.

"Increased productivity from cloud use in the public sector could also create 95,000 jobs," CSIS explained in its report.

CSIS conducted this research involving 169 samples of public institutions. The details are: 21 samples from the central government, 67 from local governments, 47 from the education sector, and 34 from the health sector.

The research was conducted from February 21 to March 11, 2022, in five Indonesian regions: DKI Jakarta, West Java, East Java, Bali, and Gorontalo.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."