Microsoft has announced a $1.7 billion investment in Indonesia, marking the company's largest investment in the country in its 29-year history. The investment will focus on expanding cloud and AI infrastructure, providing AI skilling initiatives, and supporting Indonesia's developer community.
The initiative was announced on stage by Microsoft Chairman and CEO Satya Nadella at the Microsoft Build: AI Day event in Jakarta. It builds on Microsoft's previous plans to establish its first datacenter region in the country, announced in 2021 as part of the Berdayakan Indonesia (Empower Indonesia) initiative.
"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." - Satya Nadella
Indonesia's President Joko Widodo welcomed the investment, which aligns with the country's "Golden Indonesia 2045 Vision" to become a global economic powerhouse.
The $1.7 billion investment over the next four years, will enable Microsoft to meet the growing demand for cloud services in Indonesia and help the country capitalize on AI opportunities. According to research by Kearney, AI is projected to contribute $366 billion to Indonesia's GDP by 2030, out of a potential $1 trillion for Southeast Asia as a whole.
Microsoft also committed to providing AI skilling opportunities for 2.5 million people across Southeast Asia by 2025, including 840,000 in Indonesia. These initiatives will be delivered in partnership with governments, nonprofit and corporate organizations, and communities in the region. The goal is to empower students, women, young people from underserved communities, and nonprofit employees with AI skills and knowledge.
Nadella emphasized the critical role of developers in Indonesia's digital future, and Microsoft will continue to foster the growth of the country's developer community. Indonesia is already home to the third-largest developer community on GitHub in the Asia-Pacific region, with over 3.1 million developers, and it is projected to be among the top five globally by 2026.
Many Indonesian organizations are already leveraging Microsoft's generative AI solutions to boost productivity and innovation. These include leading companies like DANA, PT Kereta Api Indonesia, and Telkomsel, as well as Bank Rakyat Indonesia, which is developing four generative AI use cases to enhance its operations.
Microsoft's investment in Indonesia's cloud and AI infrastructure, coupled with its focus on skilling and developer support, has the potential to be a game-changer for the country's economy and society. It underscores the company's commitment to empowering individuals and organizations in Indonesia to thrive in the AI era.