Microsoft is set to invest $1.7billion in AI and cloud infrastructure in Indonesia over the next four years, marking the tech giant's largest investment in the country in its 29-year history, according to chief executive Satya Nadella.
Microsoft, which operates one of the world's most extensive cloud computing networks, has made significant strides into artificial intelligence, integrating an AI chatbot into its search engine, Bing. The company reported a 20% profit increase for the January-March quarter as it seeks to establish itself as a leader in applying AI technology to enhance workplace productivity.
Mr Nadella, who was in Jakarta for the first leg of his Southeast Asia tour, said: "This new generation of AI is reshaping how people live and work everywhere, including in Indonesia. The investments we are announcing today - spanning digital infrastructure, skilling, and support for developers - will help Indonesia thrive in this new era."
Microsoft views Southeast Asia as a burgeoning market and potential hub for further AI product development. The rise of AI in the region is predicted to significantly alter its economic landscape. A study by global consulting firm Kearney suggested that AI could contribute nearly $1trillion to Southeast Asia's GDP by 2030, with Indonesia expected to capture $366billion of this.
The investment, announced on Tuesday, will provide AI training for 840,000 individuals and support Indonesia's burgeoning tech developer community. Indonesia boasts the third-largest developer community in the Asia-Pacific region, trailing only India and China. Over 3.1 million Indonesian developers utilise GitHub, a platform owned by Microsoft that fosters software development, collaboration, and innovation.
By 2026, it is predicted to rank among the top five global developer communities on GitHub. Apple CEO Tim Cook met with President Widodo on April 17th, expressing that the company would consider manufacturing in Indonesia.
Under President Joko Widodo's leadership, Indonesia has prioritised the development of digital technology and information sectors, striving to realise the government's Golden Indonesia 2045 Vision. This vision forecasts Indonesia as one of the world's top five economies with a GDP of up to $9 trillion, exactly a century after gaining independence from Dutch colonisers.
Mr Nadella met with President Widodo at the Presidential Palace on Tuesday. During their meeting, Widodo suggested the establishment of an AI research centre in Indonesia and a Microsoft data centre in either Bali or Nusantara, the country's new capital city on Borneo island.
This was confirmed by Indonesia's Minister of Communication and Information Technology, Budi Arie Setiadi. Mr Nadella's regional tour commenced in Indonesia and will continue to Thailand and Malaysia over the next couple of days.
