Jakarta, Indonesia — Microsoft will invest $1.7 billion over the next four years in new cloud and artificial intelligence infrastructure in Indonesia, the largest investment in Microsoft’s 29-year history in the country, Microsoft CEO Satya Nadella said on Tuesday.
Microsoft runs one of the largest cloud computing operations in the world and has taken a significant step towards artificial intelligence by incorporating an AI chatbot into its search engine, Bing. Its earnings report on Thursday said profits rose 20% for the January-March quarter as it tries to position itself as a leader in applying artificial intelligence technology to make workplaces more productive.
“This new generation of AI is reshaping the way people live and work everywhere, including in Indonesia,” said Nadella, in Jakarta, on the first stop of a tour of Southeast Asia.
“The investments we are announcing today – covering digital infrastructure, training and developer support – will help Indonesia thrive in this new era,” he said.
Microsoft sees Southeast Asia as a growth market and a potential location for further development of AI products. The rise of AI in the region is expected to have a significant impact on its economic outlook. A study by Kearney, a global consulting firm, said AI could contribute nearly $1 trillion to Southeast Asia’s GDP by 2030, of which Indonesia is expected to capture $366 billion.
The investment announced Tuesday will include artificial intelligence training for 840,000 people, as well as support for Indonesia’s growing community of technology developers.
Indonesia is home to the third largest developer community in the Asia-Pacific region, after India and China. More than 3.1 million developers in Indonesia use GitHub, a Microsoft-owned platform for software development, collaboration, and innovation. It is projected that by 2026 it will be one of the top five developer communities on GitHub globally.
Apple CEO Tim Cook met with Widodo on April 17 and said the company would “consider” manufacturing in Indonesia.
Indonesia, under the administration of President Joko Widodo, has emphasized the development of the digital technology and information sectors, aiming to achieve the government’s Indonesia Golden Vision 2045, which projects that Indonesia will become one of the top five economies of the world with a GDP of up to 9 trillion dollars, exactly one century. after becoming independent from the Dutch colonizers.
Nadella met with Widodo on Tuesday at the Presidential Palace. During the meeting, Widodo proposed building an AI research center in Indonesia and a Microsoft data center based in Bali or Nusantara, the country’s new capital on the island of Borneo, according to the Minister of Communications and Information Technology from Indonesia, Budi Arie Setiadi.
The CEO’s regional visit began in Indonesia and will be followed by Thailand and Malaysia over the next two days.