Microsoft has committed USD 1.7 billion in investment in Indonesia to develop cloud infrastructure, artificial intelligence (AI), and the digital ecosystem (23/09).

Minister of Communication and Digital Meutya Hafid said the investment should provide long-term benefits for Indonesia’s technology capacity through technology and knowledge transfer, talent development, and stronger capabilities among national digital industry players.

“We appreciate Microsoft’s investment commitment of USD 1.7 billion in Indonesia, particularly in cloud and AI infrastructure, as well as its contribution to strengthening Indonesia’s digital ecosystem,” Meutya said during a bilateral meeting with Microsoft Global Affairs President Lisa Monaco in New York, United States.

Microsoft Investment to Strengthen Digital Infrastructure

Meutya said Indonesia’s digital economy requires infrastructure that is increasingly resilient and inclusive and can support the needs of society and industry.

The government hopes Microsoft will view Indonesia not only as an important market, but also as a strategic center for digital infrastructure and innovation in the region.

“We hope Indonesia can increasingly become not only an important market for Microsoft, but also a strategic center for digital infrastructure and innovation in the region,” Meutya said.

Meutya said technology investment needs to be accompanied by efforts to strengthen national capacity.

Technology Transfer and Digital Talent Development

The collaboration with Microsoft is expected to provide more opportunities for Indonesian institutions, businesses, developers, and technology companies to improve their capabilities and use global technology expertise.

The cooperation covers AI, cloud technology, cybersecurity, and responsible technology governance.

The government is also encouraging stronger links between digital skills development and industry needs so that digital talent can access employment and career development opportunities in the sector.

“Our goal is not only to increase the number of people with digital skills, but also to develop more Indonesian developers, innovators, engineers, and digital leaders,” Meutya said.

Indonesia Prepares National AI Governance Framework

The government also outlined Indonesia’s efforts to prepare a national AI governance framework through a draft Presidential Regulation on the AI Roadmap and Ethics.

The framework is intended to provide certainty for the development of AI that is ethical, safe, inclusive, and responsible.

“We want to ensure that regulations do not hinder innovation, but instead provide the right protection and certainty so that AI can develop responsibly,” Meutya said.

The meeting also covered child protection in the digital environment and the implementation of Government Regulation No. 17 of 2025 on the Governance of Electronic System Implementation for Child Protection, known as PP TUNAS.

Microsoft Collaboration on Responsible Technology

Meutya invited Microsoft to strengthen collaboration by applying security principles from the technology design stage and developing technology responsibly.

“Going forward, we want to deepen Microsoft’s commitment to Indonesia through investment in digital infrastructure, technology and knowledge transfer, digital talent development, and stronger collaboration to create a safer digital environment for Indonesian children,” Meutya said.

Meutya said the partnership with Microsoft is expected to contribute to Indonesia’s Indonesia Emas 2045 agenda through increased national digital capabilities and competitiveness.

“We see Microsoft as an important partner in strengthening Indonesia’s digital capabilities and competitiveness. We hope Microsoft will continue to expand its investment and long-term commitment in Indonesia,” Meutya said.

PHOTO: BUSINESSINSIDER

This article was created with AI assistance.

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