In a groundbreaking move set to reshape Indonesia’s digital landscape, Microsoft unveiled plans to invest a staggering US$1.7 billion over the next four years in new cloud and AI infrastructure in the country. This landmark investment, the largest in Microsoft’s 29-year history in Indonesia, underscores the tech giant’s commitment to driving digital transformation and fostering economic growth in the region.
The announcement comes as part of Microsoft’s broader initiatives to support Indonesia’s ambitious Golden Indonesia 2045 Vision, which aims to position the nation as a global economic powerhouse through digital innovation and technological advancement.
Satya Nadella, Chairman and CEO of Microsoft, emphasized the transformative power of AI in shaping Indonesia’s future. “This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” said Nadella. “The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era.”
Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia, underscored the significance of Indonesia’s partnership with Microsoft in realizing the nation’s digital aspirations. “Indonesia’s collaboration with Microsoft on AI perfectly aligns with our ambition for a future driven by digital innovation,” said Setiadi. “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.”
Dharma Simorangkir, President Director of Microsoft Indonesia, hailed the investment as a milestone for Indonesia’s digital landscape. “Our investment sets a new milestone for Indonesia’s digital landscape,” said Simorangkir. “We aim to empower Indonesians with the infrastructure and skills needed for the AI era, aligning with our national vision for digital prowess. It’s a crucial step towards making Indonesia a hub for digital talent and innovation.”
The investment will focus on bolstering Indonesia’s digital infrastructure to meet the growing demand for cloud computing services. Additionally, it will support the nation’s efforts to capitalize on the significant economic opportunities presented by AI technology.
According to research by Kearney, AI could contribute nearly US$1 trillion to Southeast Asia’s GDP by 2030, with Indonesia poised to capture US$366 billion of that total.
As part of its commitment to fostering digital skills development, Microsoft also announced plans to provide AI skilling opportunities for 2.5 million people in Association of Southeast Asian Nations (ASEAN) member states by 2025. In Indonesia, this initiative is expected to benefit 840,000 individuals across various demographic groups.
Microsoft’s skilling programs will include technical and vocational education and training in AI skills, opportunities for women to build careers in cybersecurity, AI fluency training for young people from underserved communities, and support for employees of nonprofit organizations to acquire knowledge of AI and digital technologies.
The tech giant will also continue to support the growth of Indonesia’s developer community through initiatives such as AI Odyssey, aimed at helping 10,000 Indonesian developers become AI subject matter experts.
