Microsoft has officially launched its IDR 27 trillion investment in Indonesia to develop cloud infrastructure and artificial intelligence (AI). The move signals Indonesia's strengthening position in Southeast Asia’s digital landscape, supported by growing government regulation and digital infrastructure readiness.

The announcement followed a meeting between Minister of Communication and Digital Meutya Hafid, Deputy Minister Nezar Patria, and Microsoft Indonesia President Director Dharma Simorangkir at the Ministry’s Jakarta office.

“Digital transformation is a direct directive from the President,” Meutya Hafid stated. “We support it with policies that make Indonesia more competitive.”

She added that public understanding of AI must be expanded beyond its popularity to its actual benefits. “AI is more than just animated videos. We want to show real solutions and success stories that can inspire,” she said.

Government Regulation Seen as Key to Ecosystem Growth

Deputy Minister Nezar Patria emphasized the role of regulation in building a digital ecosystem. He explained that Indonesia is developing a data management system through a government cloud model.

“It may not be fully government-owned,” he said, “but it’s being developed under a national data categorization and governance framework.”

Microsoft to Launch Indonesian Cloud Region in May

Microsoft’s Dharma Simorangkir confirmed that the investment, which was pledged directly to President Joko Widodo, will support the launch of Indonesia’s first cloud region. It will serve domestic users as well as global companies operating locally.

“The launch of the cloud region will be part of the AI Tour, Microsoft’s global event, scheduled in Jakarta on May 27,” Simorangkir said. “This isn’t just about tech; it’s about Indonesia’s readiness to compete in the global AI ecosystem.”

Support for Local Innovation and Product Development

Simorangkir also noted that the initiative will include opportunities for research collaboration and the development of local digital products aimed at global markets. The investment extends beyond infrastructure, fostering innovation aligned with Indonesia’s digital vision.

PHOTO: KOMDIGI

This article was created with AI assistance.