Microsoft today announced the opening of its first cloud region in Indonesia, called Indonesia Central. This is an AI-ready hyperscale cloud infrastructure that offers in-country data residency, high levels of security, and lower latency.
The announcement was made during Microsoft’s AI Tour Jakarta, where over 800 decision-makers from leading organizations gathered. Joining the occasion were Coordinating Minister of Infrastructure and Regional Development, Agus Harimurti Yudhoyono, Minister of Communications & Digital Affairs (Komdigi), Meutya Hafid, Minister of Creative Economy, Teuku Rifky, as well as representatives from the Ministry of Investment & Downstreaming (BKPM), and the Coordinating Ministry of Human Development & Culture, among others.
This marks a significant progress towards Microsoft’s investment commitment in Indonesia. With a planned investment of 1.7 billion dollars 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.
Microsoft Cloud & AI Executive Vice President Scott Guthrie said, “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.”
According to IDC’s latest study*, Microsoft, its partners, and cloud-using customers will generate about US$15.2 billion new economic value between 2025 to 2028. The opening of Indonesia Central cloud region is expected to account for 16.5% 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.
Bringing world class infrastructure and services to Indonesia
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 – encompasses physical security, encryption, network protection and access control, as well as hardware and software protections designed to protect sensitive customer and organizational data. The level of security standards and protections in Indonesia Central cloud region is the same with all Microsoft cloud regions worldwide.
- Global connectivity – Integrated into Microsoft’s global wide area network, with high-bandwidth and low-latency access across regions. This enables Indonesian organizations to scale local innovations to the global stage, whilst also enabling global organizations to access the Indonesian market through a streamlined, secure cloud gateway.
- Data residency and compliance – enables customers to store and process data locally, helping meet Indonesian regulatory requirements.
- Sustainable by design – developed to support Microsoft’s global sustainability goals including
- Being carbon negative by 2030, and removing historical emissions by 2050
- Becoming water positive by 2030, replenishing more water than consumed
- Achieving zero waste by 2030, through recycling and responsible resource use
- Protecting more land than we use by 2025 to support environmental conservation.
“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. Today, 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.
Empowering every person and every organization to innovate in Indonesia
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.
[Left-Right] Executive Vice President Cloud & AI Microsoft, Scott Guthrie, Head of the Center for Information System and Technology, Mochamad Ali Hanafiah, and SVP Pertamina Digital Hub, Ignatius Sigit Pratopo.
Some of Indonesia’s most forward-thinking organizations are already using Microsoft technology to accelerate their transformation:
- Astra International Implements AI-Based Dealer Management System: Astra, one of Indonesia’s largest publicly listed companies with over 300 subsidiaries, joint ventures, and affiliated entities, supported by more than 190,000 employees, has developed an AI-based Dealer Management System to enhance operational efficiency across its motorcycle dealer network. This system is specifically designed to assist frontline staff in managing daily activities, including purchase planning, inventory monitoring, service scheduling, and transaction recording. Built with modern technologies such as Azure Kubernetes Service, Fabric, and Azure OpenAI, and integrated with Microsoft 365 and Copilot, the system enables more structured, responsive, and connected workflows. This innovation not only drives productivity improvements but also strengthens service quality and customer satisfaction at the dealership level.
- Ministry of Finance Aligns Technology Initiatives with Institutional Needs: At the Ministry of Finance, we focus on aligning technology initiatives with institutional needs, ensuring that they deliver tangible benefits to its stakeholders. As we move forward with cloud adoption, regulatory compliance is essential. By addressing latency challenges, cloud technology can open up new opportunities for both government agencies and the private sector.
- Pertamina Embraces AI to Drive Efficiency and Innovation Across Its Business: As the only Indonesian company listed in the Fortune 500, Pertamina is accelerating its digital transformation by integrating advanced data, analytics, and artificial intelligence solutions across the organization. The company is improving operational process and enhancing decision-making in various areas. Pertamina has started to increasingly leverage cloud infrastructure and AI capabilities to support its business modernization efforts. These initiatives aim to improve operational efficiency, encourage innovation, and gradually enhance value delivery across the company’s energy operations.
Realizing commitment to the community
A well-developed digital ecosystem is not just about technological progress—it’s also about creating opportunities for people. Microsoft’s commitment to Indonesia extends beyond infrastructure investments to empowering communities, including skilling opportunities through initiatives like:
- elevAIte: an AI skilling initiative in partnership with the Ministry of Communications and Digital Affairs (Kemkomdigi) to equip 1 million Indonesian talents by 2025. A total of 22 entities across government, industry, education, and communities have been onboarded into this initiative, ensuring inclusive AI training across Indonesia.
- Nusantara Data Center Academy: a vocational datacenter skills initiative for workforce development. A total of 65 students have been part of this initiative, with 20 of them undergoing on-the-job training in various datacenters while 45 are in in-class training.
- Community Empowerment Fund: partnering with ChangeX, this initiative enables schools surrounding our datacenters to provide hardware and training for their students and teachers in order to upskill them in digital skills. Through community empowerment funds, schools are able to improve their infrastructure and provide better learning environment for the students. Our funds currently benefit approximately 3,200 students and teachers in Cikarang and Karawang area.
At the Microsoft AI Tour in Jakarta, 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 US$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.
Looking Ahead
With the launch of the Indonesia Central cloud region, Microsoft is strengthening its three-decade partnership with Indonesia by enabling inclusive digital and AI transformation. From secure, sustainable infrastructure to bold investments in people and talent, Microsoft is committed to support Indonesia’s vision of becoming a global leader in the AI economy.
Source: https://news.microsoft.com/
