(Yicai Global) March 19 -- Alibaba Cloud has officially started operations in its third Southeast Asian market, Indonesia, as the country looks to digitize its economy.

The unit under Alibaba Group Holding Ltd. will provide elastic computing, databases, network security and artificial intelligence products and services to aid in the digitization of several industries, including e-commerce, media and fintech, Alibaba Cloud Indonesia said in a press briefing.

Rudiantara, Indonesia's Minister of Communications and Informatics, joined 33 fellow ministers to attend a training session with Alibaba Chairman Jack Ma. Indonesia's development challenges lie in logistics and payments, and the nation could learn from China's biggest e-commerce firm, Rudiantara said.

Indonesia's large population makes it suitable for digital economy development, said Hu Jianlong, founder of tech media Zhixiang. He believes that the popularity of smartphones in the country, particularly the rise of Chinese brands, has paved the way for China's internet companies to enter the local market.

There are hurdles, however, such as high costs and slow delivery times in e-commerce logistics, Hu said, adding that e-payments still need improving. The biggest issue is talent and the challenges faced by cross-cultural management and operations, he added.

Raymond Ma, general manager of Alibaba Cloud in Australia, New Zealand and countries in the Association of Southeast Asian Nations, is optimistic toward the development of Indonesia's digital economy. He believes it is benefitting from being a late starter and is being driven by progress in China, and will birth several unicorn startups in future.