Microsoft Investing IDR 27.6 Trillion in Indonesia

Microsoft CEO Satya Nadella announced an investment in Indonesia with a value of US $ 1.7 billion or around IDR 27.6 trillion. So, what are the investments for? Over the next four years Microsoft’s investment will be used to build new cloud and AI infrastructure in Indonesia. In addition, the company provides AI skills training opportunities for 840,000 residents, as well as support for the domestic developer community. According to Nadella, this is the largest single investment in 29 years of Microsoft’s history in Indonesia.

“The investment that we announce today, which includes digital infrastructure, skills, and support for developers, will help Indonesia to continue to advance in this new era,” Nadella said in the ‘Microsoft Build: AI Day’ event held at JCC, Jakarta , Tuesday (4/30/2024).

This digital infrastructure investment is a continuation of the initiative to empower Indonesia, Microsoft announced in February 2021, to accelerate inclusive economic growth. Included in the initiative, namely the plan to establish Microsoft’s first regional datacenter in Indonesia. The investment announced today will allow Microsoft to meet the demand for cloud computing services in Indonesia which continues to increase. This will also allow Indonesia to take advantage of economic opportunities and significant productivity of artificial intelligence (AI).

Microsoft also announced a greater commitment to provide AI skills opportunities for 2.5 million people in ASEAN countries until 2025. This training and support will be given through partnerships with the government, non-profit and corporate organizations, as well as communities in Indonesia, Malaysia, The Philippines, Thailand, and Vietnam.

Microsoft’s skills commitment is expected to provide benefits for 840,000 people in Indonesia by providing: 1) AI skills training to vocational high school students through the AI Teach for Indonesia program; 2) opportunities and support to build careers in the field of cyber security for women through the ready4ai & security program; 3) AI Phase Phase Training to improve the ability and work readiness for the younger generation of communities that are less served and less represented; 4) Knowledge and skills in the field of AI and Digital Technology for non-profit organizational employees.

Meanwhile, the Government of the Republic of Indonesia also asked Microsoft to build a research center in Indonesia. “Regarding the place, Mr. President, Joko Widodo and the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, have said please want to be in Bali or IKN. Because IKN is important. The President asked Microsoft to help Smart City in IKN,” explained Budi. He explained that the investment was a breath of fresh air for Indonesia. This also indicates that Indonesia is considered in the global digital ecosystem.

April 30, 2024, CNBC Indonesia