On Tuesday, American tech giant Microsoft announced the launch of its first cloud region in Indonesia, named Indonesia Central.
Microsoft said this new cloud setup in Indonesia is built for AI and can handle vast amounts of data. It keeps data stored within the country, offers strong security, and allows for faster performance.
Microsoft plans to invest $1.7 billion in Indonesia between 2024 and 2028. The new Indonesia Central Cloud region will help businesses from around the world create, grow, and expand digital ideas in Indonesia. This will help Indonesia become a strong player in the global economy.
“Indonesia’s vision for AI and digital transformation requires trusted infrastructure as its foundation,
“With the launch of Indonesia Central cloud region, we are bringing the full power of Microsoft Cloud closer to Indonesian innovators – empowering every developer, every organization, and every government institution to innovate locally and scale globally,” Microsoft Cloud & AI Executive Vice President Scott Guthrie said.
The statement, based on a study by IDC, said that Microsoft, its partners, and customers using its cloud services are expected to create about $15.2 billion in new economic value in Indonesia from 2025 to 2028.
The new Indonesia Central cloud region is expected to make up 16.5% of that $15.2 billion and create over 106,000 new jobs between 2025 and 2028.
“The presence of Microsoft’s cloud region in Indonesia reflects two key points: first, a strong confidence in the government’s digital policy direction, which is becoming increasingly consistent, responsive, and open to collaboration; and second, that Indonesia is considered ready to manage advanced technologies such as cloud and AI—not only as a user, but as an active partner in shaping the governance of a sustainable digital ecosystem,” said Meutya Hafid, Minister of Communications and Digital Affairs, representing the President of the Republic of Indonesia Prabowo Subianto, further supported by Agus Harimurti Yudhoyono, Coordinating Minister of Infrastructure and Regional Development.
The Indonesia Central cloud region is now live and has three separate zones, each with its own power, cooling, and network systems to make sure everything runs smoothly and stays online. It’s built with a strong focus on security and the environment. It offers top-level protection, global internet access, local data storage, and compliance with rules, and it is designed to be eco-friendly.
Microsoft said, “We have been supporting Indonesia for 30 years. Today, we’re taking another big step by launching the Indonesia Central cloud region. This adds to our global network of over 70 Azure cloud regions, the largest of any cloud provider in the world.”
“This is more than an infrastructure, this is a foundation for national progress,” said Dharma Simorangkir, President Director Microsoft Indonesia.
The Indonesia Central cloud region offers some of the latest technology services, including tools for productivity, data analysis, cybersecurity, computing, and data storage.
The Indonesia Central cloud region already offers many Microsoft Azure services. Microsoft 365 Copilot will be available in the first half of the year, and other services like Azure OpenAI and Microsoft’s business apps will be added later.
This will help businesses grow and use new technology in their industries by moving to the cloud. It will also let them keep customer data within the country and meet security and legal requirements.
The opening of the Indonesia Central Cloud region shows that many businesses in Indonesia want to use new digital tools. Companies are using the cloud and AI to improve how they work, offer better services, and create new ideas on a larger scale.
With the opening of the Indonesia Central cloud region, Microsoft said it is deepening its 30-year partnership with Indonesia by helping more people and businesses use digital technology and AI.
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