Microsoft pledges $1.7 billion investment in Indonesia

Microsoft‍‍`s CEO, Satya Nadella, announced a substantial investment of $1.7 billion over the next four years towards expanding cloud services and artificial intelligence (AI) infrastructure in Indonesia.

This initiative entails the establishment of data centers in the country. Nadella highlighted the significance of this venture, stating, "We‍‍`re going to lead this wave in terms of AI infrastructure that‍‍`s needed."

Nadella commenced his Southeast Asian tour in Jakarta, with subsequent visits planned for Malaysia and Thailand. The focus of this trip is to promote Microsoft‍‍`s generative AI technology, aiming to bolster the company‍‍`s presence in the region.

During his visit, Nadella engaged in discussions with outgoing President Joko Widodo and his cabinet ministers. Communications Minister Budi Arie Setiadi revealed plans for joint AI research and talent development. Widodo proposed potential locations for Microsoft‍‍`s data centers, suggesting Bali or the new capital city Nusantara in Borneo.

For more reading: Jakarta to be replaced with Nusantara as Indonesian capital

Microsoft‍‍`s commitment extends beyond infrastructure development. Nadella announced plans to train 2.5 million individuals in Southeast Asia, with 840,000 targeted in Indonesia, in AI applications by 2025. This investment aligns with Microsoft‍‍`s global strategy, which includes significant financial commitments to AI infrastructure development in Japan and partnerships with AI firms such as G42 in the UAE.

Nadella‍‍`s visit coincides with heightened interest from major tech players in Indonesia. Just weeks prior, Apple‍‍`s CEO, Tim Cook, expressed intentions to explore the establishment of a manufacturing facility in the country. With its vast and tech-savvy population, Indonesia emerges as a pivotal market for tech investments.

Indonesia may offer dual citizenship to attract diaspora: Cabinet Minister

At the same time Indonesia is considering offering dual citizenship to people of Indonesian descent to attract more skilled workers into the country, The coordinating minister for maritime affairs and investment, Luhut Pandjaitan, said on Tuesday ahead of Microsoft CEO Satya Nadella’s announcement.

Indonesia does not recognise dual citizenship for adults, according to Indonesian law, as a child with two passports must choose one and renounce the other when they turn 18.

The coordinating minister for maritime affairs and investment, Luhut Pandjaitan, said the government plans to give dual citizenship to former Indonesian citizens living overseas, without offering details.

Nearly 4,000 Indonesians turn into Singaporean citizens during 2019 to 2022, data from the Directorate General of Immigration stated.

The issue of dual citizenship caused some controversy in 2016 when Indonesia‍‍`s President Joko Widodo removed Arcandra Tahar as energy and mining minister after less than a month on the job following reports he held U.S. and Indonesian passports.