JAKARTA, RAKYAT NEWS – Global technology leader Microsoft has announced a major investment of $1.7 billion (Rp 27 trillion) in Indonesia, marking a significant move to expand the country’s capabilities in cloud computing and artificial intelligence (AI). The investment aims to establish Indonesia as a digital innovation hub in Southeast Asia.

The announcement was welcomed by Indonesia’s Minister of Communication and Informatics, Meutya Hafid, who emphasized that the investment aligns with national goals for digital transformation. Hafid reiterated that this transformation is a direct mandate from President Joko Widodo and is supported by policy frameworks that enhance Indonesia’s competitiveness in the tech sector.

Speaking alongside Microsoft Indonesia’s President Director Dharma Simorangkir, Hafid stressed the importance of educating the public about AI’s practical uses. “We want to move beyond the hype and highlight real-world solutions and success stories that AI can offer across industries,” she said.

Deputy Minister Nezar Patria also underscored the government’s focus on digital governance. He pointed to the planned development of a Government Cloud system, which will serve as the backbone for national data management and cybersecurity efforts—key components in fostering public trust and digital sovereignty.

Microsoft’s investment is part of a long-term commitment to Indonesia, initially signaled during the previous administration. Simorangkir confirmed that the tech giant will launch a new cloud region in the country, enabling local and global businesses to access advanced cloud and AI services with improved speed and reliability.

In addition, Microsoft will host an AI Tour event in Jakarta on May 27, aimed at showcasing innovations and engaging with the local tech community. The event is expected to foster new collaborations and raise awareness of AI’s role in driving economic growth.

As part of its broader strategy, Microsoft also plans to invest in research and development of digital products made in Indonesia. The company will work with Indonesian partners to co-create solutions for global markets, opening new opportunities for local developers and startups.

With this strategic move, Indonesia is poised to strengthen its position as one of the region’s leading digital economies. Backed by cutting-edge infrastructure and AI innovation, the country aims to become a competitive force in the global digital landscape. (Uki Ruknuddin)