CEO Satya Nadella commits to advancing Indonesia’s digital economy with significant infrastructure and skilling initiatives.
JAKARTA, Indonesia (India CSR): On April 30, 2024, during the Microsoft Build: AI Day in Jakarta, Microsoft’s Chairman and CEO, Satya Nadella, announced a substantial $1.7 billion investment aimed at enhancing Indonesia’s cloud and AI infrastructure. This strategic investment marks the largest in Microsoft’s 29-year history in Indonesia and aligns with the country’s ambitious Golden Indonesia 2045 Vision.
Strategic Investment Overview
The newly announced funding will span over the next four years, focusing on new cloud services, AI infrastructure development, and extensive AI skilling for approximately 840,000 Indonesians. This initiative is designed to support Indonesia’s transformation into a significant player in the global digital economy.
“Together, these initiatives will help achieve the Indonesian government’s Golden Indonesia 2045 Vision, which aims to transform the nation into a global economic powerhouse.”, Microsoft said.
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Indonesia Government and Microsoft Collaboration
Budi Arie Setiadi, Indonesia’s Minister of Communications and Information Technology, emphasized the importance of this partnership with Microsoft. He expressed confidence that this collaboration would not only foster innovation but also position Indonesia as a crucial contributor to the global technology supply chain, moving beyond just consuming technology.
Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia said, “Indonesia’s collaboration with Microsoft on AI perfectly aligns with our ambition for a future driven by digital innovation. ” I am confident this partnership will open up new horizons for Indonesia, positioning us not only as consumers of technology but as pivotal contributors to the global technological supply chain,”, he added.
Investment includes new cloud and AI infrastructure, major AI skilling initiatives, and support for Indonesia’s growing developer community
As per research conducted by Kearney, AI could contribute nearly US$1 trillion to Southeast Asia’s gross domestic product (GDP) by 2030, of which Indonesia is poised to capture US$366 billion.
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Infrastructure and Skilling Initiatives
Dharma Simorangkir, President Director of Microsoft Indonesia, highlighted that the investment would build upon the existing ‘Berdayakan Indonesia’ initiative, which focuses on inclusive economic growth and was first announced in 2021. The plans include expanding Microsoft’s first datacenter region in Indonesia, crucial for meeting the increasing demand for cloud computing and capitalizing on AI’s economic and productivity potentials.
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Impact on Local Development
Microsoft’s investment is expected to significantly impact local talent development. By 2025, Microsoft aims to equip 2.5 million people across the ASEAN region with AI skills, with 840,000 beneficiaries in Indonesia alone. These efforts include specialized training for students, opportunities for women in cybersecurity, and support for underrepresented communities to enhance employability and work readiness.
Satya Nadella, Chairman and CEO, Microsoft, “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.”, Nadela added.
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The key aspects of Microsoft’s skilling commitment in Indonesia, which is expected to benefit 840,000 individuals:
| Students | Technical and vocational education and training in AI skills through the AI TEACH for Indonesia program. |
| Women | Opportunities and support to build careers in cybersecurity through the Ready4AI&Security program. |
| Young People | AI fluency training aimed at enhancing employability and work readiness, particularly for those from marginalized groups. |
| Nonprofit Organization Employees | Training in AI and digital technologies to empower employees in the nonprofit sector with the necessary skills. |
Supporting Indonesia’s Developer Community
Nadella also underscored the critical role of local developers in realizing Indonesia’s digital aspirations. With over 3.1 million developers using GitHub, Indonesia boasts the third-largest developer community in the Asia-Pacific region. Microsoft’s new initiatives, like AI Odyssey, aim to transform 10,000 Indonesian developers into AI experts, further nurturing this vibrant community.
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Corporate and Educational Applications
Various Indonesian organizations are already leveraging Microsoft’s AI solutions to boost productivity and foster innovation. For instance, Bank Rakyat Indonesia is developing multiple AI applications to enhance service quality, while PT Telkom Indonesia has improved its coding efficiency significantly through AI tools. Furthermore, Universitas Terbuka has implemented an AI Assistant across 1,000 virtual classrooms, dramatically enhancing the educational experience and student retention.
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Ensuring Responsible AI Development
Microsoft is committed to responsible AI development, collaborating closely with the Indonesian government, civil society, and academics to ensure AI technologies serve as a force for good. The company has aligned with local regulations and ethical standards to mitigate potential risks associated with AI deployment.
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Top 10 Facts
Here’s a table summarizing 10 important facts from the news article about Microsoft’s $1.7 billion investment in Indonesia:
| Event Date and Location | April 30, 2024, Jakarta, Indonesia |
| Investment Amount | US$1.7 billion |
| Investment Duration | Over the next four years |
| Focus Areas | New cloud and AI infrastructure, AI skilling, and developer community support |
| Number of People Benefitted | AI skilling for 840,000 Indonesians |
| Regional Impact | Part of a broader commitment to skill 2.5 million people across ASEAN by 2025 |
| Initiative Name | AI Odyssey initiative aimed to skill 10,000 Indonesian developers |
| Microsoft’s History in Indonesia | This investment is the largest in Microsoft’s 29-year history in Indonesia |
| Local Developer Community | Over 3.1 million developers in Indonesia use GitHub |
| Government and Economic Goals | Aligns with Indonesia’s Golden Indonesia 2045 Vision to become a global powerhouse |
These highlights capture the key aspects of Microsoft’s commitment and its potential impact on Indonesia’s digital and economic development.
(Copyright@IndiaCSR)
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