Microsoft Promises Investment of IDR 27.6 Trillion in Indonesia
Microsoft's investment commitment to Indonesia will have an impact on the digital industry and open new job opportunities.
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Microsoft CEO Satya Nadella was the keynote speaker at the Microsoft Build:AI Day event, Tuesday (30/4/2024), in Jakarta.
JAKARTA, KOMPAS — Microsoft officially announced that it will invest 1.7 billion US dollars or the equivalent of Rp. 27.6 trillion in Indonesia. The investment will be aimed at building cloud computing and artificial intelligence infrastructure, artificial intelligence training for 840,000 people, and supporting local developers for four years.
Microsoft Chairman and CEO Satya Nadella announced the investment commitment when giving a speech at the Microsoft Build:AI Day event in Jakarta, Tuesday (30/4/2024).
"And in fact, the thing I really want to announce today is the development of data center investment. So 1.7 billion US dollars to bring the latest and greatest AI infrastructure to Indonesia," he said.
Also read: Microsoft CEO Satya Nadella meets Jokowi at the Presidential Palace
The investment worth 1.7 billion US dollars is the biggest single investment Microsoft has made in its 29-year history in Indonesia. Regarding investments in cloud computing and artificial intelligence infrastructure, this is a continuation of Microsoft's Empowering Indonesia initiative announced in February 2021.
Included in the initiative is the construction of a data center. It is hoped that this investment will allow Microsoft to meet the demand for cloud-based services in Indonesia.
President Joko Widodo welcomed Microsoft CEO Satya Nadella at the Merdeka Palace, Jakarta, Tuesday (30/4/2024) morning.
According to Nadella, a new generation of artificial intelligence has transformed the way everyone lives and works wherever they are, including in Indonesia. The investment made by Microsoft is expected to help Indonesia advance in this new era.
"Our goal is for artificial intelligence to become a driving force for economic growth. If you say there is an industrial revolution because of artificial intelligence technology, then this industrial revolution will bring about significant changes in the growth of gross domestic product (GDP)," he said.
Our goal is for artificial intelligence to be a source of economic growth.
If intelligent technology can provide added value to GDP, Nadella continued, the community will also enjoy its impact. This belief underlies Microsoft's mission to support the empowerment of every person in every organization in Indonesia.
On that occasion, Nadella also presented several Microsoft products that are in line with the era of artificial intelligence. One of them is Microsoft Copilot, a digital assistant with full artificial intelligence support to help organizational productivity.
He also mentioned local developers in Indonesia. GitHub, which is Microsoft's software development, collaboration and innovation platform, is known to have become a home for local Indonesian developers.
Microsoft will expand its investment in Indonesia. This was announced by Microsoft CEO Satya Nadella during his meeting with President Joko Widodo at the Merdeka Palace in Jakarta on Tuesday morning, April 30th, 2024.
Training for ASEAN
Nadella claimed that there are already over 3.1 million Indonesian developers using GitHub. This number makes Indonesia the home of the third-largest GitHub developer community in the Asia-Pacific region, after India and China. Indonesia is projected to become one of the top five largest developer communities on GitHub globally by 2026.
"The growth of generative artificial intelligence projects in Indonesia is also increasing rapidly, by around 200 percent. This shows how quickly generative artificial intelligence technology is spreading in Indonesia," he said.
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In the same opportunity, Nadella also announced Microsoft's commitment to providing artificial intelligence skills training for 2.5 million residents in ASEAN by 2025. The training will be provided through Microsoft's partnerships with governments, corporations, non-profit organizations, and communities in Indonesia, Malaysia, Philippines, Thailand, and Vietnam.
The President of Microsoft for the Asian region, Ahmed Mazhari, who attended the same event, stated that Microsoft had heard that the Indonesian Government has a digital transformation policy and a desire to achieve Indonesia Emas 2045. Microsoft hopes to be a part of Indonesia's digital transformation.
At the end of his speech, Mazhari congratulated Indonesia for having elected a new president and appreciated the smooth transition of government. "I also congratulate and wish success to the capital of the archipelago," he said.
Minister of Economic Affairs Coordination Airlangga Hartarto (right), as well as Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan, were seen chatting before the Full Cabinet Meeting began at the State Palace in Jakarta on Tuesday (9/1/2024).
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who also attended the Microsoft Build:AI Day event, stated that Indonesia is an attractive place for investment. This is because Indonesia is one of the G20 member countries with a strong economic growth.
The Indonesian government is also implementing digital transformation. Among them are targeting the government's public service system or e-government.
"The goods and services procurement catalog has implemented a digital model to avoid corrupt practices. "The advancement of e-government also involves the Indonesian diaspora who have expertise in digital technology," he said.
The advancement of e-government also involves the Indonesian diaspora who have expertise in digital technology.
Luhut also emphasized that he has been monitoring what Microsoft has gained from the governments of India and Thailand, which led the technology giant to invest. The Indonesian government is striving to prepare better policies to attract investment. "So, do not hesitate to invest in Indonesia," said Luhut.
The Microsoft Build event, AI Day, at the Jakarta Convention Center also featured presentations from private companies and state-owned enterprises that have been using Microsoft's technology products. An example of this is BRI.
This "state-owned" company has developed four generative artificial intelligence-based solutions to improve operational efficiency. There is also an Open University that has created an AI Assistant using Azure OpenAI Service for teaching in 1,000 virtual classrooms.
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Attendees were present at the Developer Economy Summit //DevCon/ event in Jakarta on Thursday (27/2/2020). This event is part of the celebration of Microsoft's 25th anniversary in Indonesia. As many as 2,500 developers participated in the largest event in the Asia Pacific region and was also attended by President Joko Widodo.
Marketpotential
Chairman of the Industry and Independence Division of Internet of Things (IoT), Artificial Intelligence (AI), and Big Data of the Indonesian Telematics Society (Mastel), Teguh Prasetya, when contacted by Kompas, said the potential of the cloud computing market in Indonesia It is predicted that it will reach 1.3 billion US dollars in 2025. This prediction is based on research data from the International Data Corporation (IDC).
The average growth of the cloud computing market in Indonesia is 28 percent per year. Meanwhile, citing research data from Statista, the potential market for generative artificial intelligence in Indonesia is predicted to reach 1.1 billion US dollars by 2030.
"If Microsoft has declared its commitment to invest 1.7 billion US dollars for the entire cloud computing and artificial intelligence infrastructure, including data centers, we believe that this investment commitment will drive Microsoft to become a market leader in these technologies in Indonesia," he said.
Also read: Vibrant Data Center Facilities
Such a big investment, Teguh continued, could be interpreted as Microsoft's awareness of the huge potential of the digital industry in Indonesia. If Microsoft alone realizes this, local industry players and the Indonesian Government should quickly respond to advance the national digital industry sector.
BRI is one of the companies exploring the potential use of Google Cloud's generative artificial intelligence solutions. The photo was taken at the Google Cloud Jakarta Summit 2023 event on Thursday (8/6/2023), in Jakarta.
Local operator risk
The Chairman of Indonesia Data Center Provider Organization, Hendra Suryakusuma, stated that Microsoft is currently building three data center facilities in Indonesia. All of them are located in Jakarta and its surrounding areas. One of them is currently in the process of being completed.
According to him, the development of the data center facility is certain to be embedded with Azure technology and Microsoft AI Solution. Microsoft has calculated the effects of this investment very well and when it will break even.
"The positive impact of Microsoft building data center facilities for cloud computing and artificial intelligence is making law enforcement easier. Many organizational leaders are often concerned about the security of data placed in public cloud computing, but data center operators do not place their facilities within the country," he said.
The investment commitment made by Nadella from Microsoft, according to Hendra, will also have an impact on the opening of new job opportunities. However, on the other hand, the development of data center facilities done directly by foreign technology giant corporations, such as Microsoft, potentially diminishes the optimization of the usage of data center facilities built by local operators.
