Microsoft will invest US$1.7 billion in AI and cloud infrastructure in Indonesia

Jakarta, Indonesia — Microsoft will invest $1.7 billion over the next four years in new cloud and artificial intelligence infrastructure in Indonesia – the largest investment in Microsoft’s 29-year history in the country – Microsoft CEO Satya Nadella said on Tuesday .

Microsoft runs one of the largest cloud computing operations in the world and has taken a significant step towards artificial intelligence by incorporating an AI chatbot into its search engine, Bing. Its earnings report released on Thursday said profit rose 20% in the January-March quarter as it tries to position itself as a leader in applying artificial intelligence technology to make workplaces more productive.

“This new generation of AI is reshaping the way people live and work around the world, including in Indonesia,” said Nadella, in Jakarta, on the first stop of a trip through Southeast Asia.

“The investments we announce today – spanning digital infrastructure, skills and developer support – will help Indonesia thrive in this new era,” he said.

Microsoft sees Southeast Asia as a growth market and a potential location for further AI product development. The rise of AI in the region is expected to have a significant impact on its economic outlook. A study by Kearney, a global consulting firm, said AI could contribute nearly $1 billion to Southeast Asia’s GDP by 2030, of which Indonesia is expected to capture $366 billion.

The investment announced on Tuesday will include AI training for 840,000 people, as well as support for Indonesia’s growing community of technology developers.

Indonesia is home to the third largest developer community in the Asia-Pacific region, after India and China. More than 3.1 million developers in Indonesia use GitHub, a Microsoft-owned platform for software development, collaboration and innovation. It is projected to be one of the top five developer communities on GitHub globally by 2026.

Apple CEO Tim Cook met with Widodo on April 17 and said the company would “look into” manufacturing in Indonesia.

Indonesia, under the administration of President Joko Widodo, has emphasized the development of digital technology and information sectors, with the aim of achieving the government’s Indonesian Golden Vision 2045, which projects Indonesia to become one of the world’s top five economies , with a GDP of up to US$9 trillion, exactly a century after gaining independence from Dutch colonizers.

Nadella met Widodo on Tuesday at the Presidential Palace. During the meeting, Widodo proposed building an AI research center in Indonesia and a Microsoft data center based in Bali or Nusantara, the country’s new capital on the island of Borneo, according to Indonesia’s Minister of Communications and Information Technology. Indonesia, Budi Arie Setiadi.

The CEO’s regional visit began in Indonesia and will be followed by Thailand and Malaysia over the next two days.