Friday, May 17, 2024

Microsoft to invest US$1.4 billion in AI development in Indonesia

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Microsoft CEO Satya Nadella has expressed commitment to a substantial investment for the development of Artificial Intelligence (AI) in the country, estimated at around US$1.4 billion.

The commitment was confirmed by government sources following a meeting between President Joko Widodo and Satya Nadella at the Presidential Palace in Jakarta on Tuesday, April 30, 2024.

Minister of Communication and Informatics Budi Arie Setiadi, who accompanied the meeting between Nadella and Jokowi, said that Microsoft is committed to producing 840,000 digital talents specialized in AI in Indonesia over the next four years. This translates to 210,000 digital AI talents annually.

“Satya conveyed to President Joko Widodo that Microsoft will make significant investments in Indonesia over the next four years in Artificial Intelligence (AI) and cloud computing infrastructure, as well as AI training opportunities for 840,000 individuals,” Budi Arie told the media after the meeting.

“In addition, there is also support for the growing developer community in Indonesia, such as the ‘AI Odyssey’ program, which is expected to reach 10,000 developers with Microsoft credentials,” he said.

“It’s extraordinary to have young people with AI skills; at least Indonesia will have human resources not only to be consumers but to enter the global ecosystem,” he added.

According to Budi Arie, Satya also specifically addressed the size of Microsoft’s investment in the country. However, he mentioned that he could not disclose this information to the media.

“He (Satya) will announce it directly later. It will be announced,” Budi Arie saId.

He assured that the investment figure is the largest in Microsoft’s business activities history in Indonesia over the past 29 years.

CEO of Microsoft Indonesia, Dharma Simorangkir, mentioned that Jokowi also requested Microsoft to develop research in Indonesia.

“We talked with the President about human resource development and establishing a joint research center between Microsoft and the Indonesian government. Especially in the formation of digital talent in the field of AI,” he said.

Research Center location

Budi Arie said that the government has offered several locations for the research center.

“We offer several locations. Bali, IKN (Nusantara Capital City), including assisting the government in the development of smart city in IKN,” he said.

The utilization of AI in Indonesia will be for various sectors. One of them that was discussed is in the agriculture sector, namely farming and fisheries.

“What’s important is the research center. Because this is the key to digital transformation. The most important issue is human capital; development should not only be physical,” Budi Arie said.

According to CNBC Indonesia, Microsoft’s investment in Indonesia reaches US$1.4 trillion or around Rp22.7 trillion. This figure is significantly larger than Apple’s investment commitment of Rp1.6 trillion announced when CEO Tim Cook visited Indonesia on April 17, 2024.

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