Microsoft Invests $1.7bn in Indonesia's Cloud and AI Future

Microsoft has announced its latest commitment to building digital infrastructure and artificial intelligence capabilities in Asia, announcing it will invest $1.7 billion over four years to build new cloud and AI data centres in Indonesia.

Microsoft has pledged to ramp up its global AI investments, offering AI as an opportunity to improve enterprise skill sets and elevate business innovation. It earlier announced a US$2.9bn investment in Japan to increase the country’s hyperscale cloud computing and AI infrastructure, and has committed to train two million Indians in AI by 2025.

The latest investment is Microsoft's largest ever in Indonesia during its 29-year history operating in the country and represents a significant commitment to the country's goal of becoming a global economic powerhouse driven by advanced technologies like AI.

“This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” said Microsoft CEO Satya Nadella. “Our investments will help Indonesia thrive in this new era.”

Fueling Indonesia's AI ambitions

Beyond building out its cloud computing infrastructure in Indonesia, Microsoft is rolling out a wide range of AI training and skilling initiatives aimed at equipping 840,000 Indonesians with AI expertise in the coming years.

These programmes will upskill students, women looking to enter cybersecurity jobs, underrepresented groups and nonprofit employees, and others, with the goal to develop an AI-fluent workforce that can capitalise on the economic opportunities AI promises.

Research by Kearney estimates AI could add nearly US$1tn to Southeast Asia's GDP by 2030, with Indonesia contributing $366 billion, but human capital will be key to unlocking those potential gains.

Empowering Indonesia's developer community

Another focus is enabling Indonesia's booming community of developers and software engineers. Over 3.1 million developers in the country use GitHub, Microsoft's code collaboration platform.

New initiatives like AI Odyssey will train 10,000 Indonesian developers on generative AI skills and Microsoft certifications. This will fuel innovation as local developers create new AI applications and solutions.

Aligning with national AI ethics

As AI capabilities expand, Microsoft is partnering with the Indonesian government, academics, and industry groups. The aim is to ensure AI adheres to ethical principles around privacy, security, transparency and other responsible AI practices.

Microsoft plans to implement the AI ethical values outlined by Indonesia's Ministry of Communication and Information Technology. This ethical alignment reflects the company's focus on making AI a trusted technology that benefits society.

Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia emphasised the significance of Indonesia’s partnership with Microsoft in realising 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 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.” 

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