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Quantum measurements affect the state of the observed systems via backaction. While projective measurements extract maximal classical information, they drastically alter the system. In contrast, indirect measurements balance information extraction with the degree of disturbance. Considering the prevalent use of projective measurements in quantum computing and communication protocols, the potential benefits of indirect measurements in these fields remain largely unexplored. In this work, we show that measurement backaction, a purely quantum effect, can be harnessed within the quantum reservoir computing framework to enhance temporal data processing. Incorporating indirect measurements leads to improved execution-time scaling and overall performance. Our results reveal that carefully optimizing the measurement strength can significantly improve the quantum reservoir computing algorithm performance. Furthermore, our approach demonstrates improved memory performance when compared with state-of-the-art classical-feedback protocols. This work provides a comprehensive and practical recipe to promote the implementation of indirect-measurement-based protocols in quantum reservoir computing. Moreover, our findings motivate further exploration of experimental protocols that leverage the backaction effects of indirect measurements.