Microsoft to invest US$1.7 billion in cloud, AI in Indonesia: CEO
Microsoft will also expand its digital training programmes to provide AI skills
[JAKARTA] Tech giant Microsoft will invest US$1.7 billion over the next four years to enhance its hyperscale cloud computing and artificial intelligence (AI) infrastructure in Indonesia, marking the largest investment made by the company in the biggest economy of South-east Asia.
The announcement was made on Tuesday (Apr 30) in Jakarta after Microsoft chief executive officer Satya Nadella met the country’s outgoing president Joko Widodo.
Microsoft will also expand its digital training programmes to provide AI skills to more than 2.5 million people in South-east Asia by 2025, including 840,000 people in Indonesia.
“This is an important step to make Indonesia a centre for digital talent and innovation,” he said in a conference in Jakarta.
Nadella elaborated that this investment would lead to the development of cutting-edge AI infrastructure, catering to advancements from Nvidia, AMD and Microsoft’s Maya chips.
The infrastructure will serve as a platform for developers to train their AI models and participate in a global ecosystem.
“Microsoft will continue to help drive the growth of the developer community in Indonesia through new initiatives such as AI Odyssey, which is expected to help 10,000 Indonesian developers become experts in the field of AI, by learning new skills and earning Microsoft credentials,” Nadella added.
Nadella expects the investment to contribute to the growth of Indonesia’s AI sector and support digital transformation efforts.
With its vast and tech-savvy population, Indonesia stands as a prime target market for investment in the tech sector within South-east Asia.
Microsoft recently joined the ranks of companies investing in Indonesia’s growing digital economy.
The move comes on the heels of Nvidia’s announcement last month of a US$200 million investment with Indosat Ooredoo Hutchison to establish a data centre in the country.
Minister of Communication and Information Technology of Indonesia Budi Arie Setiadi announced that due to Microsoft’s substantial investment, the government extended an invitation with incentives for the company to establish an office branch in Indonesia, including in the prospective capital in Nusantara.
“The location is flexible, with options including Nusantara or Bali,” stated an official statement.
Indonesia has established ambitious goals to utilise AI, aiming to contribute US$366 billion to its gross domestic product by 2030, in alignment with its aspirations to elevate its economy to developing status by 2045.
Nadella, who took the helm as Microsoft CEO in 2014, has visited Indonesia three times in the past decade.
The 46-year-old Indian-born executive who previously headed Microsoft’s cloud computing and enterprise business replaced Steve Ballmer and became the third CEO in the company’s 39-year history at the time.
Following his visit to Jakarta, Nadella is scheduled to travel to Bangkok and Kuala Lumpur this week as part of the company’s efforts to advance its AI initiatives in the region.
