Microsoft has launched its first cloud region in Indonesia, dubbed Indonesia Central, as part of a significant $1.7 billion investment in the country from 2024 to 2028. The new cloud region provides local access to Microsoft’s cloud infrastructure, supporting artificial intelligence development, data residency, security compliance, and low-latency services.
Key Highlights of Microsoft’s Indonesia Cloud Region
The launch event, attended by key Indonesian officials including Coordinating Minister of Infrastructure Agus Harimurti Yudhoyono and Minister of Communications Meutya Hafid, marks a significant milestone in Microsoft’s commitment to Indonesia’s digital future. Scott Guthrie, Executive Vice President of Microsoft Cloud and AI, stated, “With Indonesia Central, we’re bringing Microsoft’s cloud infrastructure closer to local users, enabling developers, businesses, and institutions to build locally and scale globally.”
Features of the Indonesia Central Cloud Region
- Three Availability Zones with separate power, cooling, and networking
- Designed to meet international standards for resilience, data protection, and regulatory compliance
- Expected to play a crucial role in local innovation and economic activity
Economic Impact and Job Creation
According to IDC, Microsoft and its ecosystem are projected to contribute $15.2 billion to Indonesia’s economy from 2025 to 2028, with the new cloud region accounting for approximately 16.5% of this figure. The launch is also anticipated to support the creation of over 106,000 jobs.
Early Adopters and Future Services
Over 100 organizations, including major Indonesian companies like Pertamina, BCA, Siloam Hospitals, and Telkom Indonesia, have already begun utilizing the cloud region to modernize their operations and comply with local data regulations. Microsoft plans to introduce additional services such as Microsoft 365 Copilot and Azure OpenAI later this year.
AI Center of Excellence
In addition to the cloud region, Microsoft announced preliminary plans for an AI Center of Excellence. This initiative aims to collaborate with both public and private partners to drive AI adoption in Indonesia.
Global Context
This development is part of Microsoft’s broader global strategy. The company now operates over 70 Azure cloud regions worldwide. In a separate initiative, Microsoft has entered into a strategic partnership with the Government of Kuwait to establish an AI-powered Azure Region, aiming to advance local AI capabilities and drive economic growth.
