double-skinned crabsVietnamese crab exportergood crabexellent crab

Microsoft to Invest $1.7 Billion in AI, Cloud Infrastructure In Indonesia

Associated Press
April 30, 2024 | 2:55 pm
SHARE
In this photo released by the Indonesian Presidential Palace, Microsoft CEO Satya Nadella, left, meets with Indonesia President Joko Widodo at Merdeka Palace in Jakarta, Indonesia, Tuesday, April 30, 2024. (Vico/Indonesian President Palace via AP)
In this photo released by the Indonesian Presidential Palace, Microsoft CEO Satya Nadella, left, meets with Indonesia President Joko Widodo at Merdeka Palace in Jakarta, Indonesia, Tuesday, April 30, 2024. (Vico/Indonesian President Palace via AP)

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

Microsoft runs one of the world’s largest cloud computing operations and has taken a significant step into artificial intelligence by incorporating an AI chatbot into its search engine, Bing. Its earnings report Thursday said profit rose 20 percent for 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 how people live and work everywhere, including in Indonesia,” said Nadella, in Jakarta on the first stop of a tour of Southeast Asia.

“The investments we are announcing today -- spanning digital infrastructure, skilling, and support for developers -- will help Indonesia thrive in this new era,” he said.

ADVERTISEMENT

Microsoft sees Southeast Asia as a growing market and a potential location for more AI product development. The rise of AI in the region is expected to significantly impact its economic landscape. A study held by Kearney, a global consulting firm, said that AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, of which Indonesia is expected to capture $366 billion.

The investment announced Tuesday will include AI training for 840,000 people, as well as support for Indonesia’s growing community of tech 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 Widodo on April 17 and said the company would “look at” manufacturing in Indonesia.

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

Nadella met Widodo on Tuesday in 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 city on Borneo island, according to Indonesia’s Minister of Communication and Information Technology, Budi Arie Setiadi.

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

Tags: Keywords:
Google Add Investor.id as a preferred source on Google +
SHARE

Related Articles


Tech Oct 9, 2026 | 7:52 pm

Indonesia Businesses Urged to Move Beyond AI Pilot Projects

Salesforce warns Indonesian companies risk missing AI productivity gains by delaying deployment and failing to prepare workers.
Tech Oct 9, 2026 | 6:59 pm

AI Adoption Exposes Indonesian Firms to Data Leak Risks

AI adoption is surging in Indonesia, raising concerns over data leaks, weak safeguards and the risks of unauthorized AI use.
Business Oct 8, 2026 | 10:31 am

Indonesia Can Hit 8% Growth With Housing, AI, Green Energy: Hashim

Hashim Djojohadikusumo says housing, AI, digital infrastructure and green energy could help Indonesia achieve 8% economic growth.
Business Oct 7, 2026 | 7:06 am

Airlangga Urges Indonesia to Catch Up With Vietnam in Digital, AI Industries

Indonesia needs to accelerate digital, semiconductor and AI industries to catch up with Vietnam and achieve its 8% growth target.
Business Oct 6, 2026 | 6:02 pm

⁠ AI Data Centers Could Consume 4% of Global Power by 2035, World Bank Says

AI data centers are set to triple global power demand by 2035, putting Southeast Asia’s electricity grids under pressure.
Business Oct 6, 2026 | 4:08 pm

Jakarta Stocks Rise 1.21% as Indonesia Lags in AI Boom

Indonesia’s stocks gained 1.21% as the World Bank said the country is lagging Malaysia and Vietnam in benefiting from the AI boom.
Tech Oct 6, 2026 | 3:18 pm

Malaysia, Vietnam Ride AI Boom as Indonesia Misses Out: World Bank

Malaysia and Vietnam are benefiting from the global AI investment boom, while Indonesia has yet to gain from AI value chains.
Opinion Sep 30, 2026 | 8:02 pm

Cooling the Data Center Debate

Indonesia needs data centers to power its digital economy, but water, energy and community impacts require transparent planning.
Tech Sep 23, 2026 | 9:13 pm

Companies Need Real-Time Data to Scale AI, CloudMile Says

Companies need real-time data infrastructure to scale AI adoption and turn investments into measurable business results, CloudMile says.
Tech Aug 12, 2026 | 2:51 am

AI Firm Manus to Resume 'Independent' Operations after China Blocks Meta Deal

Meta agreed to acquire Manus, an artificial intelligence (AI) agent developed by the startup Butterfly Effect, in a $2 billion deal.

The Latest


Special Updates 2 hours ago

Chandra Asri Group Receives Trade Finance Excellence Award, Reinforcing Its Role in Indonesia’s Industrial Development

Chandra Asri Group receives the Trade Finance Excellence Award at CIMB Niaga Business Summit 2026.
Special Updates 2 hours ago

AEON MALL Deltamas Brings 11 Sports and Creative Competitions to AEONLYMPIC 2026

AEON MALL Deltamas hosts AEONLYMPIC 2026, featuring 11 sports and creative competitions, with more than 3,100 participants.
Business 3 hours ago

Indonesian Stocks Extend Losses for Third Day, Fall 3.64% to 4,996

Indonesian stocks fell 3.64% on Monday, extending losses for a third straight session amid MSCI concerns and tighter trading limits.
News 4 hours ago

Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore

Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.
Lifestyle 6 hours ago

Jakarta Outranks Amsterdam in Global Public Transport Survey

Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED