American technology conglomerate Microsoft announced Tuesday the opening of its first cloud region in Indonesia, called Indonesia Central.
The firm said in a statement this is an artificial intelligence (AI)-ready hyperscale cloud infrastructure that offers in-country data residency, high levels of security, and lower latency.
This marks a significant progress towards Microsoft’s investment commitment in Indonesia.
With a planned investment of $1.7 billion in the period 2024-2028, the Indonesia Central cloud region will enable businesses from across the world to ideate, develop, and scale digital innovation in Indonesia; positioning the country as a global economic powerhouse.
“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.
Cited IDC’s latest study, the statement highlighted that Microsoft, its partners, and cloud-using customers will generate about $15.2 billion new economic value between 2025 to 2028.
The opening of Indonesia Central cloud region is expected to account for 16.5 percent of it and add more than 106,000 new jobs in the same period.
“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, now live with three availability zones which provides independent power, cooling, and networking for higher availability needs, is built with security and sustainability at its core, including: enterprise-grade stringent security; global connectivity; data residency and compliance; sustainable by design.
“For 30 years, Microsoft made it our commitment to empower Indonesia. Today, we take the next step forward by opening the Indonesia Central cloud region, which expands Microsoft’s global network of over 70+ Azure regions worldwide, the most of any cloud provider,
“This is more than an infrastructure, this is a foundation for national progress,” said Dharma Simorangkir, President Director, Microsoft Indonesia.
The technologies offered at Indonesia Central cloud region are, among others, the most modern services for productivity, data analytics, cybersecurity, computing, and storage.
It is noted that the Indonesia Central cloud region is already available with an extensive set of Microsoft Azure services, with Microsoft 365 Copilot services to be available in the first half of the year, and Microsoft Azure OpenAI Service as well as Microsoft’s stack of business applications to be available later.
This will empower organizations to innovate in their industries and move their businesses to the cloud, while enabling them to meet customer data residency, security and compliance needs.
The launch of the Indonesia Central cloud region reflects the growing demand for digital transformation across industries in Indonesia—where organizations are embracing cloud and AI to modernize operations, enhance services, and drive innovation at scale.
To date, more than 100 organizations have onboarded to the Indonesia Central cloud region, including leading names such as Adaro, BCA, Binus University, BUMA, Disprz, Emerson, Home Credit Indonesia, KPP Mining, Manulife, Peloton Computer Enterprises, Pertamina, Petrosea, PT Federal International Finance, PT Kereta Api Indonesia (Persero), PT Pamapersada Nusantara, PT United Tractors Tbk, Siloam Hospitals, Sinarmas Land, SLB (Schlumberger), Telkom Indonesia, TRAC, and Veeam.
With local access to hyperscale infrastructure, these organizations can now store and process data within Indonesia while gaining the benefits of Microsoft’s global standards in security, compliance, and performance.
The firm’s commitment to Indonesia extends beyond infrastructure investments to empowering communities, including skilling opportunities through initiatives like: elevAIte; Nusantara Data Center Academy; Community Empowerment Fund.
Microsoft also shared plans to support the next phase of Indonesia’s AI transformation through the exploration of an AI Center of Excellence.
This early-stage initiative aims to bring together stakeholders from across sectors to accelerate AI adoption, foster innovation, and co-develop real-world solutions that align with national priorities.
The effort builds on Microsoft’s broader investment in Indonesia’s digital future, including a $1.7 billion commitment to cloud and AI infrastructure, and programs such as elevAIte Indonesia.
These initiatives ensure that Indonesia’s growing cloud and AI ecosystem is matched by a future-ready, skilled workforce – unlocking opportunities for all.
With the launch of the Indonesia Central cloud region, Microsoft said the firm is strengthening its three-decade partnership with Indonesia by enabling inclusive digital and AI transformation.
It noted that from secure, sustainable infrastructure to bold investments in people and talent, the firm is committed to support Indonesia’s vision of becoming a global leader in the AI economy.