Microsoft announces $1.7bn investment in Indonesia’s digital infrastructure

Microsoft has unveiled a major investment plan in Indonesia, committing US$1.7 billion over the next four years to expand new cloud and AI infrastructure, as well as to provide AI skilling opportunities for 840,000 individuals. This initiative, the largest in Microsoft’s 29-year history in Indonesia, aligns with the Indonesian government’s Golden Indonesia 2045 Vision, aiming to transform the country into a global economic powerhouse.

Satya Nadella, Chairman and CEO of Microsoft, emphasized the transformative impact of the investment: “This new generation of AI is reshaping how people live and work everywhere, including in Indonesia. The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era.”

The investment aims to meet the increasing demand for cloud computing services in Indonesia and capitalize on the economic and productivity opportunities offered by the latest AI technologies. This strategic move is expected to bolster Indonesia’s position not only as a consumer of digital technologies but also as a key player in the global technology supply chain.

Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia, highlighted the strategic importance of this partnership with Microsoft, stating, “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.”

Additionally, Dharma Simorangkir, President Director of Microsoft Indonesia, noted the significance of the investment for the country’s digital landscape. “Our investment sets a new milestone for Indonesia’s digital landscape. We aim to empower Indonesians with the infrastructure and skills needed for the AI era, aligning with our national vision for digital prowess.”

The investment also builds on Microsoft’s Berdayakan Indonesia (Empower Indonesia) initiative, which began in February 2021 with plans to establish the company’s first datacenter region in Indonesia, aimed at accelerating inclusive economic growth.

This robust investment by Microsoft is poised to significantly advance Indonesia’s capabilities in digital technology and innovation, supporting the nation’s ambitious goals for economic growth and technological leadership on the global stage.