MSMEs that Adopt Cloud and AI Predicted to Generate IDR 79.6 Trillion Annually by 2030

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A groundbreaking research study conducted by Amazon Web Services (AWS) has brought to light the remarkable potential for Indonesia’s Micro, Small, and Medium-sized Enterprises (MSMEs) to revolutionize their economic landscape. By harnessing the transformative powers of cloud computing and artificial intelligence (AI), these enterprises are poised to generate an astounding IDR 79.6 trillion annually by the year 2030.

This profound revelation stems from the report titled “Realising a Cloud-enabled Economy: How Cloud Drives Economic and Societal Impact Through Micro, Small, and Medium-Sized Businesses,” which was orchestrated by AWS in a visionary bid to elucidate the multifaceted benefits of cloud migration for MSMEs and their role in addressing diverse societal challenges. It’s important to note that within the scope of this study, MSMEs encompass businesses with a workforce of up to 250 employees.

According to the Organisation for Economic Cooperation and Development (OECD), an economy is deemed to be cloud-empowered when a staggering 90 percent of its enterprises embrace cloud technology in its most rudimentary form.

Remarkably, the AWS report casts light on the current scenario in Indonesia, where a mere 29 percent of businesses have embarked on the cloud journey, primarily adopting rudimentary technologies such as web-based email services and cloud storage. This revelation underscores the immense untapped potential within the Indonesian MSME landscape.

Aaron Hill, the Managing Director of Economic Insights at Accenture Strategy and Consulting, underlines the significance of this revelation by emphasizing the substantial room for growth in cloud adoption among Indonesian MSMEs.

He elucidates, “Even the most fundamental cloud technology has its own benefits, but the fact remains that MSMEs still have significant opportunities to increase their cloud adoption to address some of the most significant societal challenges”.

When benchmarked against other OECD member nations, which belong to the league of advanced economies, the cloud adoption landscape in Indonesia emerges as an arena at a mid-level stage. Here, the focus predominantly gravitates towards Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP), reflecting a pragmatic approach.

However, the adoption of advanced cloud technologies such as generative artificial intelligence (AI) and machine learning remains somewhat nascent. This observation accentuates the vast potential awaiting Indonesian MSMEs, offering ample scope for enhancing their cloud adoption endeavors to unlock their full capabilities.

The integration of cloud technology serves as an enabler, catalyzing advancements across diverse sectors, including healthcare, education, and precision agriculture. In the realm of healthcare, MSMEs endorsing cloud technologies emerge as critical catalysts in addressing one of the most formidable challenges: limited access to healthcare services in underserved communities. The report postulates that cloud-based MSMEs could generate up to IDR 6 trillion annually by enhancing productivity in the healthcare sector.

Moreover, these MSMEs are poised to play a pivotal role in supporting telehealth consultations, potentially extending these services to 7 million individuals in Indonesia by the year 2030.

In the sphere of education, cloud-based MSMEs are poised to be the vanguard of progress by surmounting challenges related to accessibility and inclusivity through digital platforms. The report anticipates that such MSMEs could generate approximately IDR 15 trillion annually, significantly boosting productivity in the education sector.

In a remarkable feat, these enterprises are projected to offer e-learning solutions to a staggering 21 million Indonesian students by 2030, reflecting an impressive 75 percent increase compared to the existing landscape. Moreover, the report sheds light on the prospect that approximately 48 million adults will gain access to education through cloud-based MSMEs.

Simultaneously, the agriculture sector stands to benefit immensely from cloud technology, with MSMEs poised to address issues related to food scarcity. By leveraging data-centric solutions like AI, these MSMEs could yield revenues of up to IDR 59.1 trillion per year by enhancing productivity in the agricultural domain.

The future holds the promise of a paradigm shift, with an estimated one out of every nine farms, livestock operations, or fisheries embracing precision agriculture solutions. This transformation is set to amplify productivity by a staggering 300 percent by 2030, heralding a new era of agricultural innovation.

In summation, this research serves as a clarion call to Indonesian MSMEs, offering a vision of unparalleled economic growth through strategic cloud adoption and the harnessing of AI capabilities. By venturing into this realm, MSMEs have the potential not only to elevate their own prospects but also to drive progress across various sectors, thus contributing substantially to the realization of Sustainable Development Goals.

The journey toward realizing this potential has begun, and the future is ripe with possibilities for those who dare to embrace the cloud-enabled economy of tomorrow.