Microsoft plans to allocate $1.7 billion for AI and cloud infrastructure investment in Indonesia.

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Berzatu Editor
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 min. reading
May 1, 2024

"Microsoft CEO Satya Nadella asserts that this investment will propel Southeast Asia's largest economy into a prosperous 'new era'."

Microsoft's CEO, Satya Nadella, has revealed a groundbreaking initiative to invest $1.7 billion in artificial intelligence and cloud services within Indonesia. This ambitious plan entails training 840,000 individuals in Indonesia in AI utilization and offering substantial support to the nation's burgeoning tech community.

This investment marks Microsoft's most significant commitment in its nearly thirty-year presence in the Southeast Asian nation. Nadella personally discussed these plans with President Joko Widodo, colloquially known as Jokowi, at Jakarta's presidential palace, preceding a keynote address on AI in the Indonesian capital.

Nadella emphasized the transformative impact of AI, stating, "This new generation of AI is reshaping how people live and work everywhere, including in Indonesia." He reiterated the significance of the announced investments, spanning digital infrastructure, skill development, and developer support, in propelling Indonesia into this new era of technological advancement.

Microsoft's investment aims to introduce cutting-edge AI infrastructure to Indonesia, positioning the company as a leader in providing the essential technological backbone for AI development in the region.

With a population exceeding 280 million, Indonesia boasts Southeast Asia's largest economy and hosts the third-largest developer community in the region, following India and China. According to a 2020 study by global consulting firm Kearney, AI stands to contribute nearly $1 trillion to Southeast Asia's GDP by 2030, with Indonesia expected to claim $366 billion of this growth.

Nadella's visit underscores Microsoft's global efforts to bolster AI development, following Apple CEO Tim Cook's recent discussions with Indonesian leaders about potential manufacturing ventures in the country. Microsoft's broader strategy includes substantial investments in cloud and AI infrastructure worldwide, including recent announcements of multibillion-dollar commitments in Japan and partnerships with UAE-based AI firm G42.