Two prominent US technology companies have recently unveiled significant investment plans in Indonesia, signaling a notable advancement in the country’s tech landscape. Microsoft’s investment of USD 1.7 billion over the next four years in Indonesia emphasizes the expansion of cloud services and artificial intelligence (AI). Satya Nadella, Microsoft’s CEO, emphasized the investment’s aim to establish advanced AI infrastructure in Indonesia, positioning the country at the forefront of technological advancement.
During Nadella’s visit to Jakarta, discussions with outgoing President Joko Widodo and cabinet ministers centered on collaborative AI research and talent development. Widodo proposed potential locations for Microsoft’s data centers, including Bali and the new capital city, Nusantara, in Borneo’s jungle.
Meanwhile, US chipmaker Nvidia partnered with Indonesian telco Indosat Ooredoo Hutchison to establish an AI center in Surakarta, Central Java, with a committed investment of USD 200 million. This center, slated to commence construction in 2024, seeks to bolster infrastructure and human resources for AI development. Nvidia’s strategic expansion in Southeast Asia mirrors its growing engagements and strategic ventures in the region.
Surakarta’s selection as the site for the AI center was influenced by the region’s abundance of skilled human resources and robust 5G infrastructure, as noted by Indonesia’s Minister of Communications and Information, Budi Arie Setiadi. This collaboration underscores Indonesia’s emerging significance in the global tech landscape, attracting substantial investments and initiatives from industry giants like Microsoft and Nvidia.
(Sources: Reuters; Tech in Asia)
