In a significant move towards advancing technological capabilities in Indonesia, Microsoft has pledged a hefty investment of US$1.7 billion. This commitment, spread over the next four years, aims to bolster Indonesia’s cloud and AI infrastructure. This initiative aligns with the Indonesian government’s “Golden Indonesia 2045 Vision,” which envisions transforming the nation into a global economic powerhouse by enhancing its technological foundations.

“This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” said Satya Nadella, Chairman and CEO, Microsoft. “The investments we are announcing today — spanning digital infrastructure, skilling, and support for developers — will help Indonesia thrive in this new era.”

The investment will focus on creating new cloud and AI infrastructures and skilling up to 840,000 individuals to thrive in an AI-driven economy. This initiative not only aims to meet the increasing demand for cloud computing services in Indonesia but also leverages AI to foster significant economic and productivity growth across various sectors. With AI poised to potentially contribute nearly US$1 trillion to Southeast Asia’s GDP by 2030, Indonesia could capture a substantial portion of this growth.

Furthermore, Microsoft’s commitment extends to the ASEAN region, aiming to provide AI skilling opportunities to 2.5 million people by 2025. This will involve collaboration with governments, nonprofits, and corporate organizations to enhance workforce capabilities in the face of rapid technological advancements.

This strategic investment and skilling initiative underscore Microsoft’s dedication to supporting Indonesia’s and ASEAN’s technological and economic development, ensuring that the region remains at the forefront of digital innovation and economic growth.

“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,” said Budi Arie Setiadi, Indonesia’s Minister of Communications and Information Technology.

While 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.”

Featured image: Microsoft Chairman and CEO Satya Nadella (L) meets with President of the Republic of Indonesia Joko Widodo prior to the Microsoft Build: AI Day on April 30, 2024 in Jakarta, Indonesia. Credit: Press, Media, and Information Bureau, President Secretariat.