“Microsoft’s $1.7 Billion Investment in Indonesia: Cloud and AI Infrastructure Boost”

Microsoft CEO Satya Nadella announced on Tuesday that the company will invest USD 1.7 billion in cloud and artificial intelligence infrastructure in Indonesia over the next four years.

This is the largest investment the company has made in Indonesia in its 29-year history. Microsoft is one of the world’s largest cloud computing operators and has integrated an AI chatbot into its search engine, Bing. It aims to become a leader in AI technology to help make workplaces more efficient.

Nadella believes that this new generation of AI is reshaping the way people live and work, including in Indonesia.

The investments in digital infrastructure, skills training, and developer support will help Indonesia thrive in this new era of AI. Southeast Asia is an important market for Microsoft, and the company sees growth potential in this region for AI product development.

According to Kearney, a global consulting firm, AI could contribute nearly USD 1 trillion to Southeast Asia’s GDP by 2030, and Indonesia is expected to capture a significant portion of that. Microsoft’s investment in Indonesia includes AI training for 840,000 people and support for Indonesia’s growing tech developer community.

Indonesia has the third-largest developer community in the Asia-Pacific region, with more than 3.1 million developers using GitHub, a Microsoft-owned platform for software development, collaboration, and innovation.

It is expected to be one of the top five developer communities on GitHub globally by 2026. Indonesia’s government under President Joko Widodo has prioritized the development of digital technology and information sectors, aiming to achieve the Golden Indonesia 2045 Vision.

This vision projects Indonesia becoming one of the world’s top five economies with a GDP of up to USD 9 trillion, exactly one century after it won independence from Dutch colonizers. Nadella met with Widodo on Tuesday, and the president proposed building an AI research center in Indonesia, as well as a Microsoft data center in Bali or Nusantara, the country’s new capital on Borneo island.

Apple CEO Tim Cook also met with Widodo on April 17 and said the company would consider manufacturing in Indonesia. Nadella’s regional visit began in Indonesia and will be followed by Thailand and Malaysia over the next two days.