When cloud goes local: What GoTo’s migration signals about Indonesia’s data future
Cloud infrastructure is no longer just about tech—it’s a strategic edge in today’s global regulatory and political climate.
Earlier this June, Indonesian tech giant GoTo pulled off one of Southeast Asia’s largest and most complex cloud migrations. The company moved its on-demand services systems, which are used by millions of people daily, to Tencent Cloud’s local data center in Jakarta. The shift involved over 1,000 microservices and was completed in just 4 hours and 54 minutes, more than an hour ahead of schedule.
Around the same time, GoTo also migrated its financial services arm to Alibaba Cloud’s data centers in the capital. The move is expected to streamline operations, lower costs, and improve service efficiency for over 20 million monthly GoPay users.
But this wasn’t just a tech upgrade; it’s part of a broader global trend. Governments are increasingly pushing to keep sensitive data within national borders. The cloud is going local, and that’s starting to reshape how and where data lives.
In Indonesia, where over 212 million out of a total population of 280 million spend nearly eight hours a day on average on the internet, data sovereignty is becoming a priority. The government wants personal and transactional data stored onshore, governed by local laws. The reasons are clear: national security, digital economic strategy, and growing pressure to protect user privacy.
As a result, tech companies are rethinking their cloud strategies, choosing proximity and compliance over scale alone. GoTo’s migration is one of the clearest signs that the cloud, like trade, is no longer a borderless phenomenon.
What it takes to move the cloud
While it may look like a standard infrastructure shift, cloud migration is a high-stakes operation, especially for a company the size of GoTo. When things go wrong, the fallout can include data loss, downtime, or regulatory trouble.
Back in 2009, American research and advisory firm Gartner found that 83% of data migrations either failed or went over budget and schedule. A decade later, 90% of CIOs said their migration projects still struggled to meet deadlines due to unexpected complexity.
A survey by the Cloud Security Alliance found that only 25% of organizations completed cloud migrations on time, while a full third failed altogether.
Even with improved public cloud tools, companies continue to miss milestones and run into budget constraints. That’s why many avoid full migrations unless they absolutely have to.
GoTo’s smooth migration marks a milestone, which proves that even huge platforms can complete a clean migration if planned right. It sets a benchmark in regulated markets like Indonesia, where there’s little room for error and even less patience for downtime.
It also shows that cloud infrastructure is no longer just a backend concern, but also a strategic decision. For tech companies, where and how data is stored now involves legal, risk, compliance, and even geopolitical trade-offs. The choices could affect long-term competitiveness in Indonesia and the broader Southeast Asia region.
Indonesia has taken a layered approach to digital sovereignty, including pushing for data localization. In 2022, it passed the Personal Data Protection (PDP) Law, which, among other things, requires public sector data to be stored locally.
These rules have pushed regional and global cloud providers to expand their infrastructure in Indonesia, sparking a quiet arms race.
Google Cloud Jakarta region went live in 2020, while Amazon Web Services (AWS) launched its cloud region in the same city with three availability zones a year later. More recently, Microsoft launched its Indonesian cloud region, backed by a US$1.7 billion investment plan.
Chinese players are also in the race. Alibaba Cloud has set up a local cloud region since 2018 with three availability zones, while Tencent Cloud recently expanded its infrastructure footprint in Indonesia by adding a third availability zone to its Jakarta region and opening a new data center.
An availability zone is a physically separate location within a cloud region. If one availability zone experiences an outage for whatever reason, the others can continue operating without interruption.
Looking ahead, Tencent plans to invest US$500 million in the country by 2030, aiming to build one of the most extensive local presences among Chinese cloud providers in Southeast Asia.
Homegrown data center operators are also gaining traction as demand for local infrastructure grows. DCI Indonesia recently launched its eighth facility, which brings its total capacity to 119 MW, the largest in the country. Its clients include global cloud providers and major e-commerce platforms in Indonesia and Southeast Asia, though it hasn’t disclosed specific names in its financial reports.
State-owned Telkomsigma, through its NeutraDC brand, is also expanding aggressively with 29 data centres, offering hyperscale and enterprise-grade facilities across key Indonesian cities. The government is further stepping in, with Indonesia’s first national data center expected to go live this month to centralize public sector data.
In an interview with WallstreetCN, GoTo CEO Patrick Walujo said that Gojek’s previous cloud setup became increasingly complex over time, leading to high costs, maintenance challenges, and scalability issues. While cost savings were the initial driver, the company later recognized a need for a deeper architectural overhaul to support long-term growth.
The decision to use Tencent Cloud for Gojek followed a rigorous evaluation and bidding process. GoTo’s CTO, William Xiong, said Tencent was ultimately chosen for its infrastructure, cost efficiency, and ability to handle Gojek’s complex systems.
Over eight months, GoTo and Tencent Cloud’s engineering teams worked closely, conducting intensive testing and rehearsals. They used over 50 Tencent Cloud products to fine-tune and secure the migration.
The internet isn’t so borderless anymore
Just as global supply chains are being reshaped by geopolitical tensions, the foundation of the internet is also shifting. Governments from Indonesia to the EU and the US are tightening rules on data flows, pushing companies to reconsider where their systems are hosted.
The internet may feel seamless to users, but cloud strategies are becoming increasingly local. They’re no longer about choosing a single global provider, but tailoring infrastructure to each market, based on compliance needs, latency, and local capacity.
GoTo’s decision to use Tencent Cloud for Gojek and Alibaba Cloud for its financial arm reflects that shift: both providers had established a strong local presence in Jakarta and could meet the regulatory and operational demands of the market.
In today’s fragmented cloud environment, local readiness is becoming a key differentiator. The race to build local data centers is just part of a complex equation, and the real competition will be won by those who can best navigate the intersection of global technology and local law, transforming the cloud from a simple utility into a trusted, strategic partner.