TECHNOLOGY

MICROSOFT TO INVEST $1.7 BILLION IN INDONESIA FOR CLOUD SERVICES AND AI EXPANSION

Microsoft's Ambitious Investment Paves the Way for Technological Advancement in Indonesia

01.05.2024
BY WILHEMINA BOWEN
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In a bid to bolster its presence in Southeast Asia, Microsoft (MSFT.O) has announced a significant investment of $1.7 billion over the next four years in Indonesia. This announcement was made by the Chief Executive Officer of Microsoft, Satya Nadella, during his visit to Jakarta on Tuesday.

The investment will primarily focus on expanding cloud services and advancing artificial intelligence (AI) infrastructure in the country. Nadella emphasized that Microsoft aims to bring the latest AI infrastructure to Indonesia and lead the wave of technological innovation in the region.

During his visit, Nadella met with outgoing President Joko Widodo and his cabinet ministers to discuss joint AI research initiatives and talent development programs. Minister of Communications, Budi Arie Setiadi, revealed that Widodo suggested potential locations for Microsoft's data centers, including the resort island of Bali and the new capital city, Nusantara, currently under construction in Borneo's jungle.

As part of its commitment to fostering AI skills, Microsoft plans to train 2.5 million individuals in Southeast Asia by 2025, with 840,000 of them in Indonesia alone. This initiative aligns with Microsoft's broader strategy of expanding support for AI development globally, as evidenced by recent investments in Japan and the UAE-based firm G42.

Nadella's visit to Jakarta follows Apple Inc (AAPL.O) CEO Tim Cook's meeting with President Widodo, during which Cook expressed interest in potentially establishing a manufacturing facility in Indonesia. These interactions highlight Indonesia's significance as a key market for technology-related investments, given its sizable and tech-savvy population.

Microsoft's commitment to Indonesia comes on the heels of the company's strong performance in the third quarter, surpassing Wall Street expectations. The surge in revenue and profit was attributed to the increasing adoption of AI across Microsoft's cloud services, signaling a growing demand for technology solutions in the region.

With Microsoft's substantial investment, Indonesia is poised to become a hub for cutting-edge cloud services and AI development, paving the way for technological advancement and economic growth in the Southeast Asian nation.

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