Microsoft to invest $1.7b for AI, cloud infrastructure in Indonesia

Microsoft CEO Satya Nadella meets President Joko Widodo in Jakarta / Photo credit: Budi Arie Setiadi on Instagram

Tech giant Microsoft has announced plans to invest US$1.7 billion over the next four years in new cloud and AI infrastructure in Indonesia.

The company said that this marks the “single largest investment in Microsoft’s 29-year history in the country.” The company will also facilitate AI skills training for 840,000 Indonesians.

“This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” Satya Nadella, chairman and CEO of Microsoft, said in a statement.

“The investments we are announcing today – spanning digital infrastructure, skilling, and support for developers – will help Indonesia thrive in this new era,” he added.

Alongside the investment announcement, Nadella visited Indonesia President Joko Widodo in Jakarta today. In the meeting, which was also attended by Minister of Communication and Informatics Budi Arie Setiadi, Widodo encouraged Microsoft to establish a research center in the country, local outlet Bisnis reported.

AI is estimated to contribute nearly US$1 trillion to Southeast Asia’s gross domestic product by 2030, with Indonesia poised to capture US$366 billion of that figure, according to research by Kearney.

Meanwhile, Microsoft also announced that it will provide AI training and support to 2.5 million people in Southeast Asia by 2025. To do so, the company plans to partner with governments, communities, and non-profit and corporate organizations across the region.

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