Oracle to invest in Indonesia's tech sector, Danantara CEO says

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Oracle Corporation is preparing to expand its footprint in Indonesia, with investment plans confirmed by Rosan Roeslani (pictured), CEO of Danantara Investment Management.

Roeslani, who is also the minister of investment and downstreaming, revealed the plans through his personal Instagram account following a meeting with Oracle representatives in South Jakarta. In his post, he said: “Oracle Corporation, known as a pioneer in databases, cloud services, and artificial intelligence (AI) solutions, plans to invest in Indonesia.”

The meeting centred on the role of AI in strengthening Indonesia’s digital economy. “We discussed the utilisation of AI to strengthen data sovereignty, improve efficiency in the public and private sectors, create new job opportunities in the technology field, and accelerate Indonesia’s digital transformation towards a developed country,” Roeslani added.

Don't miss: Danantara appoints GoTo's ESG architect Tanah Sullivan as global relations director

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A post shared by Rosan Perkasa Roeslani (@rosanroeslani)

While no details were disclosed about the size or form of Oracle’s investment, the announcement highlights rising US tech interest in Indonesia’s cloud and AI sector and confirms earlier government statements on the company’s expansion plans.

Oracle, founded in 1977 by Larry Ellison, Bob Miner, and Ed Oates, already operates data centre facilities in the country. According to coordinating minister for economic affairs Airlangga Hartarto, the company is currently colocated at DayOne’s Nongsa Digital Park in Batam. He also previously noted that 12 US-based data centre firms are already operating in Indonesia, framing the comment in response to discussions on transferring personal data to the US as part of bilateral trade cooperation.

“Oracle is currently in discussion in Batam. At the moment, they are colocated at DayOne (Nongsa Digital Park) but will expand and replicate existing facilities in Johor, Malaysia. The target investment could reach US$6 billion,” Airlangga said in July.

Oracle has been deepening its partnerships in Indonesia, including work with the communications ministry to build Southeast Asia’s largest GPU cluster. Minister Meutya Hafid said the company will launch a public cloud ecosystem in Q3 2025, with a data centre to handle large-scale AI workloads and training programmes to equip over 100,000 Indonesians with AI skills.

Business leaders have welcomed Oracle’s plans but urged improvements to ensure maximum impact. Chandra Wahjudi, vice chair of public policy at the Indonesian Employers Association (Apindo), told Kontan: “Oracle’s entry could signal Indonesia’s strong potential in the technology sector, particularly in AI and cloud infrastructure.” He cautioned, however, that education, human resources, and digital infrastructure must improve to maximise the benefits of such investment.

Despite challenges - including Indonesia’s high incremental capital output ratio compared with regional peers - analysts said the entry of a global player like Oracle signals confidence in Indonesia’s long-term role as a digital economy leader.

Indonesia is fast becoming a hub for global cloud investment, highlighted by Microsoft’s launch of its first local cloud region, Indonesia Central, in May. The move adds to a growing list of technology giants - including Google, Equinix, and Tencent - that are building data centre infrastructure and cloud services in the country to tap its expanding digital economy.

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