Communication and Information Technology Minister Johnny G. Plate. (JG Screenshot)

Microsoft Follows Amazon to Build Its First Data Center in Indonesia

BY :JAKARTA GLOBE

FEBRUARY 26, 2021

Jakarta. American tech giant Microsoft announced a plan to build its first data center in Indonesia, marking its "most significant" investment in the country in the past 26 years, that would help the largest digital economy in Southeast Asia to generate an additional $6.3 billion in revenue, the company said in a statement on Thursday. 

Microsoft was the latest company to build its data center in Indonesia, following the country's policy to require technology companies to establish their cloud operation here. 

“Microsoft has a long-term commitment to Indonesia’s growth. Today’s announcement is our most significant investment in the 26 years we have been established here," Jean-Philippe Courtois, the executive vice president and president of Microsoft global sales, marketing, and operations, said in a statement. 

The company said the data center would use 100 percent renewable energy. It will help generate $6.3 billion in new revenues from the country’s ecosystem of local customers and partners and is expected to create 60,000 jobs to the local economy, over the next four years, the company said, referring to a study from IDC. 

"To ensure everyone can take advantage of the digital opportunities ahead, we will continue to support digital skilling, with a new program that will reach over 24 million Indonesians by the end of 2021,” Courtois said. 

Under the initiative, Microsoft would train Indonesians in AI, cybersecurity, and data science, the company said. 

Microsoft has partnered with many Indonesia companies including e-commerce firm Bukalapak and state controlled energy firm Partamina. 

The government welcomed the investment and much needed initiative to train talents in the digital economy. 

"As a leading global provider of advanced cloud solutions, Microsoft’s investment to establish local data centers, digital skilling and collaboration with the Government of Indonesia will support local innovation, economic recovery, and digital transformation," Communication and Information Technology Minister Johnny G. Plate, said. 

Indonesia's digital economy would generate $124 billion in gross merchandise value in 2025, the largest in Southeast Asia, a study from tech giant Google showed last year. The study also listed lack of digital talents as a persistent problem for the country to reach its digital economy potential. 

The government has encouraged technology firms to invest in Indonesia, under its Indonesia 4.0 initiative to transform the country industry. 

Last year, West Java revealed Amazon's plan of a $2.8 billion investment to build a data center in the province.

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