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Microsoft Plans to Invest US$1.7 Bil in Indonesia

JAKARTA: In a significant move, US tech titan Microsoft has declared a substantial investment in Indonesia during the visit of its CEO to Jakarta for discussions with governmental representatives. The company has revealed plans to inject a hefty sum of US$1.7 billion over the next four years into the country’s infrastructure for cloud computing and artificial intelligence (AI), alongside initiatives to provide AI training for 840,000 individuals and bolster support for the burgeoning developer community.

Microsoft chief executive officer, Satya Nadella
Microsoft chief executive officer, Satya Nadella

Highlighting the importance of this investment, Communications and Information Minister Budi Arie Setiadi emphasized its crucial role in Indonesia’s digital progress. He remarked that Microsoft’s commitment signals recognition of Indonesia’s significance within the global digital landscape. The establishment of a research and development center, slated for either Bali or the new capital city being developed in Kalimantan, aims to cultivate AI expertise within the nation.

Minister Setiadi underscored the transformative potential of AI technology in enhancing productivity across various sectors, including agriculture and fisheries, thereby driving economic growth. Microsoft’s projections suggest Indonesia’s leading role in AI’s contribution to the national GDP by 2030 within the Southeast Asian region, contingent upon overcoming challenges such as digital proficiency gaps and data governance issues.

Microsoft’s CEO, Satya Nadella, reiterated the company’s commitment to empowering individuals and organizations in Indonesia to leverage the upcoming AI advancements. Nadella announced ambitious training targets, aiming to equip 2.5 million individuals across the ASEAN region by 2025, with a significant portion allocated to Indonesia. This investment represents a milestone in Microsoft’s nearly three-decade presence in the country, marking a significant step towards fostering digital innovation and economic growth.

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