Microsoft Investing $1.7 Billion in Indonesia Cloud and AI Efforts

Continuing its aggressive global investment push in both AI and cloud infrastructure, Microsoft on Tuesday announced it is making a $1.7 billion investment in Indonesia.

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

Nadella met with Indonesian President Joko Widodo this week to discuss the specifics of how the investment will further the country's technological goals regarding growth.

The stake will be allotted over a four-year period and represents the largest investment Microsoft has made in the region in the company's history. Microsoft said today's announcement will help contribute to the country's Golden Indonesia 2045 initiative, which aims to establish Indonesia as a sovereign, prosperous and advanced nation over the next 20 years.

While the majority of the investment will focus on AI and cloud infrastructure, Microsoft's interest also includes developing training and advancement programs in partnership with the Indonesian government, nonprofits and tech companies to increase AI, cybersecurity and digital technologies experts. The company estimates that 840,000 Indonesians and a total of 2.5 million across Southeast Asia will benefit from these upcoming programs and services

Our investment sets a new milestone for Indonesia's digital landscape," said Dharma Simorangkir, President Director of Microsoft Indonesia. "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."

This week's announcement continues a recent uptick in global spending by Microsoft, which includes cloud and AI infrastructure investments in the United Arab Emirates for $1.5 billion, $2.9 billion in Japan and the announcement of a new AI hub in London.

Microsoft isn't the only big player looking to make a substantial investment in Indonesia. Apple's Tim Cook last week said the company is looking into opening a new manufacturing plant in the country.

About the Author

Chris Paoli (@ChrisPaoli5) is the associate editor for Converge360.


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