Microsoft has officially launched its first cloud region in Indonesia, dubbed Indonesia Central. This AI-ready hyperscale cloud infrastructure is designed to offer in-country data residency, enhanced security features, and lower latency, thereby supporting businesses across Indonesia and positioning the country as a global economic powerhouse.
Key Features of Indonesia Central Cloud Region
The Indonesia Central cloud region is built with security and sustainability at its core. It features:
- Enterprise-grade security measures including physical security, encryption, and access control
- Global connectivity through Microsoft’s global wide area network, enabling high-bandwidth and low-latency access
- Data residency and compliance capabilities to meet Indonesian regulatory requirements
- Sustainable design supporting Microsoft’s global sustainability goals, including becoming carbon negative by 2030 and water positive by 2030
Economic Impact and Job Creation
According to a study by IDC, Microsoft’s cloud region is expected to generate about 16.5% of the US$15.2 billion new economic value created by Microsoft, its partners, and cloud-using customers between 2025 and 2028. This translates to more than 106,000 new jobs in the same period.
Empowering Innovation and Digital Transformation
The launch of Indonesia Central cloud region is set to empower organizations to innovate and drive digital transformation across various industries. With local access to hyperscale infrastructure, businesses can now store and process data within Indonesia while benefiting from Microsoft’s global standards in security, compliance, and performance. Over 100 organizations have already onboarded to the Indonesia Central cloud region, including major names like Adaro, BCA, and Pertamina.
Success Stories
Several Indonesian organizations are already leveraging Microsoft technology to accelerate their transformation:
- Astra International has developed an AI-based Dealer Management System to enhance operational efficiency
- The Ministry of Finance is aligning technology initiatives with institutional needs, ensuring regulatory compliance and addressing latency challenges
- Pertamina is integrating advanced data, analytics, and artificial intelligence solutions to improve operational processes and decision-making
Community Empowerment
Microsoft’s commitment to Indonesia extends beyond infrastructure investments to empowering communities. Initiatives include:
- elevAIte: an AI skilling initiative aiming to equip 1 million Indonesian talents by 2025
- Nusantara Data Center Academy: a vocational datacenter skills initiative for workforce development
- Community Empowerment Fund: partnering with ChangeX to provide hardware and training for students and teachers in schools surrounding datacenters
Future Plans
Microsoft plans to support the next phase of Indonesia’s AI transformation through the exploration of an AI Center of Excellence. This initiative aims to bring together stakeholders to accelerate AI adoption, foster innovation, and co-develop real-world solutions aligned with national priorities.
