Microsoft is establishing its first data centre region in Indonesia to deliver trusted cloud services locally, under its newly-launched Berdayakan Ekonomi Digital Indonesia (empowering Indonesia's digital economy) initiative. According to a press release, the data centre region will allow businesses to have faster access to Microsoft's cloud services and the ability for data to be stored in country. It is also equipped with "world-class data security and privacy".
As part of the initiative, Microsoft will also train an additional three million Indonesians to achieve its goal of empowering over 24 million Indonesians by the end of 2021, through its long-established skills programmes that are designed to create inclusive economic opportunities in the digital era. The skills initiative will empower Indonesians in AI, cybersecurity, and data science through a digital literacy curriculum. It also extends across individuals with different backgrounds, including students and teachers, those in mid-career, home makers and people from disadvantaged communities.
According to research from market research company International Data Corporation, Microsoft’s investment in Indonesia is expected to generate up to US$6.3 billion in new revenues from the country’s ecosystem of local customers and partners. In addition, its cloud-consuming businesses are expected to contribute 60,000 jobs to the local economy over the next four years. Microsoft's investment in Indonesia comes as the country's digital economy was projected to reach US$40 billion in 2019, according to a report by Google and Bain & Company. The value is also expected to triple to US$130 billion by 2025.
With the new data centre region, businesses of all sizes and industries will have access to Microsoft Azure at launch, which grants them access to its cloud services and capabilities that span computing, networking, databases, analytics, artificial intelligence, and Internet of Things (IoT). The centre region will also feature Azure Availability Zones, which are physical locations equipped with independent power, network and cooling for additional tolerance to data centre failures. The data centre is also said to support Microsoft’s sustainability goals, including its commitment to shift to 100% supply of renewable energy in Microsoft datacenters by 2025.
Jean-Philippe Courtois, executive vice president and president, Microsoft global sales, marketing and operations, said Microsoft has a long-term commitment to Indonesia’s growth, and its Berdayakan Ekonomi Digital Indonesia initiative is its "most significant investment" in the 26 years it has been established in the country. "I am delighted that we are helping to empower Indonesia to realise its vision to lead the region’s digital transformation. From eCommerce to agriculture, Indonesian businesses across all sectors are gaining a digital advantage with the agility, security and scale offered by Microsoft’s cloud services," he said.
Haris Izmee, president director for Microsoft Indonesia, added: "With more than 150 employees and 7,000 partners across Indonesia’s 17,000 islands, Microsoft’s significant presence in Indonesia has actively supported the startup community and ecosystem. Leading companies such as Bukalapak, Pertamina, and The Ministry of Agriculture have benefited from Microsoft’s global scale cloud services and have expressed their commitment to using Microsoft Cloud from the new region when it is available."
Earlier in November, Microsoft reportedly invested US$100 million into Bukalapak to reshape Indonesia's eCommerce landscape. The partnership saw Bukalapak adopting Microsoft Azure as its preferred cloud platform. It also aims to leverage Microsoft’s expertise in building a resilient cloud infrastructure to support its services for more than 12 million micro, small and medium enterprises, and 100 million customers.
Johnny G. Plate, minister of communication and information, Indonesia, said Microsoft's investment in Indonesia's digital economy will support local innovation, economic recovery, and digital transformation. "The Ministry of Communication and Information welcomes Microsoft’s plans to establish a local datacenter region with highly secure and compliant cloud services, which will benefit local businesses, government, and individuals across all sectors. We also welcome Microsoft’s commitment to increase the capacity of Indonesian digital talent across all skill levels,” he added.
Microsoft is not the only company looking to boost the digital economy in Indonesia. Earlier this month, The Jakarta Post reported that Amazon is also looking to build an infrastructure region by the end of 2022. Citing industry minister Agus Gumiwang, Amazon's investment is said to boost Indonesia to become a strategic digital hub. It will also support the growth of the startup ecosystem, the article added.
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