Microsoft has announced a $1.7 billion investment in Indonesia, aimed at enhancing the country’s cloud services and artificial intelligence (AI) capabilities over the next four years. This initiative is not only the largest in Microsoft’s 29-year history in Indonesia but also a significant step towards realizing the Indonesian government’s Golden Indonesia 2045 Vision. The Golden Indonesia 2045 Vision seeks to elevate Indonesia into a global economic powerhouse by utilizing digital technologies.
The investment from Microsoft will focus on three core areas: developing new cloud and AI infrastructure, providing AI skilling opportunities for approximately 840,000 Indonesians, and providing support for the nation’s flourishing developer community.
“This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” remarked Satya Nadella, Chairman and CEO of Microsoft. Nadella highlighted the potential for this investment to reshape various sectors across the country, from education to enterprise, ensuring comprehensive growth and advancement.
He also added: “The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era.”
Aligning closely with Indonesia’s ambitions, Microsoft’s investment will significantly enhance the digital infrastructure across the country. Plans include establishing several new data centers to cater to the growing demand for cloud computing services. This expansion is crucial for accommodating the surging data needs of Indonesian enterprises and startups.
” Indonesia’s collaboration with Microsoft on AI perfectly aligns with our ambition for a future driven by digital innovation. I am confident this partnership will open up new horizons for Indonesia, positioning us not only as consumers of technology but as pivotal contributors to the global technological supply chain, ” stated Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia.
The company plans to equip 2.5 million people across the Association of Southeast Asian Nations (ASEAN) region with AI skills by 2025, with 840,000 beneficiaries from Indonesia alone. These initiatives aim to prepare the workforce for the AI-driven economy, enhancing employability and bridging the skill gap in advanced technologies.
The investment will also accelerate the growth of Indonesia’s developer community, which is already the third-largest in the Asia-Pacific region. By providing resources and training, Microsoft aims to nurture over 10,000 Indonesian developers into AI experts, enhancing their capabilities and opportunities in the global tech landscape.
Microsoft’s approach goes beyond technological advancements, emphasizing ethical AI use and sustainable practices. The company has always been in the lead regarding investing in AI development whether it’s any AI startup or collaboration with different countries including a $1.5 billion investment in UAE-based AI firm G42.
The company has pledged to adhere to AI ethical values highlighted by the Indonesian Ministry of Communication and Information Technology, ensuring that the deployment of AI technologies is beneficial and equitable.
This investment by Microsoft is a game-changer for Indonesia, setting the stage for significant transformations in its digital landscape. As Indonesia embraces these advancements, it edges closer to becoming a global leader in technology.