Microsoft’s chief executive officer, Satya Nadella, made a significant commitment on Tuesday, announcing a $1.7 billion investment in artificial intelligence and cloud computing to bolster Indonesia’s AI infrastructure. This pledge came following a meeting between Nadella and Indonesia’s President, Joko Widodo, also known as Jokowi, at Jakarta’s presidential palace.
Indonesia, boasting Southeast Asia’s largest economy and a population of approximately 280 million across its vast archipelago, is witnessing a rising demand for data centers and AI technology in the region.
Also Read: Musk Initiates Fresh Job Cuts: Tesla Senior Executives Laid Off
During his keynote speech in the Indonesian capital, Nadella expressed his enthusiasm for the expanded investment, highlighting Microsoft’s plan to construct data centers in Indonesia imminently. He emphasized Microsoft’s commitment to spearheading the next generation of AI infrastructure necessary for Indonesia’s advancement, aiming to empower every individual and organization in the country to leverage AI’s potential.
Nadella also announced Microsoft’s initiative to provide AI training for hundreds of thousands of Indonesians, part of a broader effort to train 2.5 million people across the ASEAN region by 2025, with 840,000 individuals targeted in Indonesia alone.
This $1.7 billion investment over four years marks a significant milestone for Indonesia’s digital landscape, according to Dharma Simorangkir, President Director of Microsoft Indonesia. Minister of Communication and Informatics Budi Arie Setiadi highlighted that this investment represents the largest value pledge in Microsoft’s 29-year history of business in Indonesia.
The investment underscores Microsoft’s commitment to meeting the growing demand for cloud computing services in Indonesia, aligning with research by global consulting firm Kearney, which predicts AI could contribute $1 trillion to Southeast Asia’s GDP by 2030, with Indonesia expected to capture over a third of that.
Furthermore, Microsoft’s investment in Indonesia comes amid its strategic push into generative AI, exemplified by its $13 billion partnership with OpenAI in 2023. Nadella’s visit to Indonesia is part of a broader regional tour aimed at promoting Microsoft’s AI technology, with upcoming stops in Thailand and Malaysia.
Nadella’s visit follows Apple CEO Tim Cook’s recent meetings with President Jokowi and president-elect Prabowo Subianto, indicating tech giants’ interest in diversifying supply chains away from China. Cook mentioned Apple’s exploration of potential investments in manufacturing in Indonesia.
Nadella’s trip signals Microsoft’s proactive engagement in Southeast Asia’s tech landscape, leveraging AI and cloud computing to drive innovation and economic growth across the region.
