Microsoft will invest $1.7 billion over the next four years to build cloud computing and artificial intelligence infrastructure in Indonesia, CEO Satya Nadella announced Tuesday after meeting Indonesian President Joko Widodo in Jakarta.
The investment will be Microsoft’s single biggest investment in Indonesia as the U.S. software giant bets Southeast Asia’s most populous nation will boost growth. “This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” Nadella said in a statement. “The investments we are announcing today—spanning digital infrastructure, skilling, and support for developers—will help Indonesia thrive in this new era.”
Microsoft is expanding its digital infrastructure to meet the growing demand for cloud computing services. It plans to give training on AI and digital technologies to 2.5 million people across Southeast Asia, including 840,000 in Indonesia.
With AI expected to play a pivotal role in developing Indonesia’s digital economy, Nadella said Microsoft will help train 10,000 Indonesian app developers. His visit to Jakarta is the first leg of his three-country tour of Southeast Asia as major U.S. tech companies emphasize the growth importance of the region amid rising geopolitical tensions between the U.S. and China. Nvidia’s Jensen Huang and Apple’s Tim Cook have recently visited the region.
“Indonesia’s collaboration with Microsoft on AI perfectly aligns with our ambition for a future driven by digital innovation,” Budi Arie Setiadi, Minister of Communications and Information Technology of the Republic of Indonesia said in the statement. “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.”
After Jakarta, Nadella will visit Bangkok and Kuala Lumpur later in the week.