TEMPO.CO, Jakarta - The Minister of Communication and Digital, Meutya Hafid, stated that the opening of Microsoft's Indonesia Central cloud region signals Indonesia's readiness to manage advanced technologies such as cloud computing. Indonesia is not only a user of artificial intelligence (AI) but is also seen as actively helping to shape the digital world.
"This marks a new stage of readiness for Indonesia to become a top global investment destination in the cloud computing sector," Meutya said during the Microsoft AI Tour event in Jakarta on Tuesday, May 27, 2025.
The establishment of this cloud region represents Microsoft's US$1.7 billion investment commitment in Indonesia. This funding, allocated for the 2024-2028 period, was initially targeted at the cloud sector and AI development. On Tuesday, May 27, 2025, the U.S. technology giant officially inaugurated the Indonesia Central Cloud Region.
According to Meutya, the launch of this cloud infrastructure could further promote Indonesia as a global investment hub for cloud computing. "Indonesia will ensure that incoming investments not only sustain but also grow in line with national needs," she affirmed.
Citing various studies, Meutya highlighted Indonesia's strategic position as the gateway to the digital economy of the Asia Pacific. The Gross Merchandise Value (GMV) of the digital economy grew from US$80 billion in 2023 to US$90 billion in 2024. This year, the figure is projected to reach US$130 billion.
The value of the Indonesian data center market is also predicted to expand from US$2.3 billion to US$3.79 billion by 2030. This growth is driven not only by global demand but also by high domestic needs for digital services. Microsoft's investment is additionally expected to boost the economy by US$2.5 billion, or approximately Rp41 trillion, over the next four years, including the creation of 60,000 new jobs.
"Given Indonesia's population size, a large number of people spend time using the internet throughout the day," Meutya observed.
Scott Guthrie, Executive Vice President of Microsoft's Cloud + AI Group, referred to their first cloud region entity in Indonesia as the foundation for national progress and a catalyst for digital transformation, including AI. "We bring the full power of the Microsoft Azure Cloud infrastructure to Indonesia," he stated.
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