Microsoft to invest $1.7bn in Indonesia’s cloud and AI sector

30 Apr 2024

From left: Microsoft chair and CEO Satya Nadella with president of the Republic of Indonesia Joko Widodo. Image: Press, Media and Information Bureau, President Secretariat

Microsoft said this investment will help it meet growing demand for cloud computing services and help Indonesia to capitalise on the economic opportunities presented by AI.

Microsoft has today (30 April) revealed plans to invest $1.7bn over the next four years into Indonesia, to develop new cloud and AI infrastructure in the country.

The tech giant said this marks its largest investment in its 29-year history in the country and will support Indonesia’s growing developer community. Microsoft also said it will provide AI upskilling opportunities for 840,000 people.

Microsoft said the investment will help it to meet growing demand for cloud computing services in Indonesia while helping the country capitalise on the economic opportunities presented by AI technology. The company claims that its initiatives will support the Golden Indonesia 2045 Vision – a government initiative to to transform the nation economically.

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

Microsoft said Indonesia is one of the fastest-growing groups in the region in terms of developer growth, with a 31pc year-over-year increase in the number of developers on GitHub in 2023. Indonesia also had 213pc growth in the number of public generative AI projects on the platform last year.

Meanwhile, Microsoft’s AI training focus is part of a broader goal to support 2.5m people in Association of Southeast Asian Nations member states by 2025. President director of Microsoft Indonesia Dharma Simorangkir said the company’s 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,” Simorangkir said. “It’s a crucial step towards making Indonesia a hub for digital talent and innovation.”

Microsoft’s focus on AI and cloud technologies has been a boon for the company in recent years. The company reported strong quarterly earnings earlier this month and attributed its recent success to AI, while its dominance in the cloud sector has grown.

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Leigh Mc Gowran is a journalist with Silicon Republic

editorial@siliconrepublic.com