Microsoft plans to invest US$1.7 billion in Indonesia’s cloud and AI goals in the next four years.
Takeaway points
- Microsoft plans to invest US$1.7 billion in Indonesia’s Cloud and AI goals in the next four years.
- According to Microsoft, their skilling commitment is expected to benefit 840,000 people in Indonesia.
- Microsoft announced a broader commitment to provide AI skilling opportunities for 2.5 million people in Association of Southeast Asian Nations (ASEAN) member states by 2025.
The tech giant Microsoft, in Jakarta on Tuesday, announced that it will invest US$1.7 billion over the next four years in new cloud and AI infrastructure in Indonesia, as well as AI skilling opportunities for 840,000 people.
This investment represents the single largest investment in Microsoft’s 29-year history in the country, and together, the initiatives will help to achieve the Indonesian government’s Golden 2045 Vision, whose goal is to change the nation into a global economic powerhouse, Microsoft said.
Satya Nadella, Chairman and CEO of Microsoft, said that AI is reshaping how people live and work everywhere.
“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 said.
Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia in a statement said that Indonesia’s partnership with Microsoft will help to achieve the ambitious vision of Golden Indonesia 2045.
“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,” he said.
Dharma Simorangkir, President and Director of Microsoft Indonesia, said: “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. It’s a crucial step towards making Indonesia a hub for digital talent and innovation.”
The investment will enable Microsoft to meet the growing demand for cloud computing services in Indonesia and will also allow Indonesia to capitalize on the significant economic and productivity opportunities presented by the latest AI technology, the report stated.
Research by Kearney showed that AI could contribute nearly US$1 trillion to Southeast Asia’s gross domestic product (GDP) by 2030, of which Indonesia is poised to capture US$366 billion.
Artificial Intelligence Opportunities
Microsoft announced a broader commitment to provide AI skilling opportunities for 2.5 million people in Association of Southeast Asian Nations (ASEAN) member states by 2025. According to the tech giant, the training and support will be delivered in partnership with governments, nonprofit and corporate organizations, and communities in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
According to Microsoft, their skilling commitment is expected to benefit 840,000 people in Indonesia by providing: students with technical and vocational education and training in AI skills through the AI TEACH for Indonesia program; women with opportunities and support to build careers in cybersecurity via the new Ready4AI&Security program; young people with AI fluency training to enhance the employability and work readiness of those from underserved and underrepresented communities; and employees of nonprofit organizations with knowledge of and skills in AI and digital technologies.
Microsoft’s substantial investment of US$1.7 billion in Indonesia’s cloud and AI initiatives marks a pivotal moment for both the tech giant and the Southeast Asian nation. This strategic partnership holds significant promise for accelerating Indonesia’s digital transformation and economic growth while solidifying Microsoft’s position as a key player in the region’s tech ecosystem.
