Microsoft cloud expansion drives Indonesia’s long-term AI strategy

editorial_staff

November 27, 2025

Microsoft has expanded its Indonesia Central cloud region to support the country’s long-term AI goals, giving local organisations more options to run advanced workloads and keep data within national borders. The update was announced at the Cloud & AI Innovation Summit in Jakarta, where business and government leaders discussed how to turn growing interest in AI into real results. Microsoft executives, including the President Director of Microsoft Indonesia Dharma Simorangkir, urged organisations to use the new capacity to build solutions that serve local needs.

More Indonesian companies are moving from small AI trials to building tools that solve specific problems. To support this, the Indonesian Central region now offers a wider range of Azure services for developing and running applications. Teams can use data-connected apps, managed databases, and AI-optimised virtual machines to train and deploy models while meeting data governance requirements. Microsoft 365 Copilot and GitHub Copilot are also available in the region, giving workers and developers AI help in everyday tasks and coding.

Demand for local cloud services has grown since the region launched in May 2025. Firms in sectors such as mining, travel, and digital services are using it to modernise systems and secure sensitive information. Petrosea and Vale Indonesia are using the region for upgrades and local data storage, while online travel platform tiket.com has built an AI travel assistant using Azure OpenAI Service to let customers interact with its services in natural language.

A key theme at the summit was the need for stronger data foundations. Microsoft introduced Microsoft Fabric to Indonesia as a single environment for data engineering, integration, analytics, and business intelligence, with built-in Copilot features. The service is designed to bring scattered data into one place, making governance, reporting, and cost control easier.

Skills are another focus. Microsoft’s Elevate programme has reached more than 1.2 million learners and aims to certify 500,000 people in AI skills by 2026, with training for teachers, nonprofits, communities, and job seekers. These efforts are part of Microsoft’s US$1.7 billion investment plan for Indonesia through 2028, including support for partners and developers such as the GitHub Universe Jakarta event. Together, the expanded cloud region, new tools, and training programmes aim to help Indonesia move from AI experiments to long-term use.