Indonesia’s ambition to evolve into a powerful AI-driven economy is accelerating faster than ever. This progress is fueled by rapid upgrades to the nation’s digital infrastructure, especially in cloud computing. One of the most significant developments is Microsoft’s expansion of cloud and AI services within the Indonesia Central data region. Launched only six months ago, this region now provides organisations with stronger computing power, modern tools for software development, and secure data storage housed entirely within the country. For many businesses, this marks a major step away from relying on international data centers and toward building a sovereign digital ecosystem.
This major milestone was the central topic at the Cloud & AI Innovation Summit in Jakarta. The event gathered government officials, industry leaders, and technology experts to discuss how Indonesia can accelerate its AI future. Among the keynote speakers were Mike Chan, Head of Azure AI Apps & Agents for Asia, and Dharma Simorangkir, President Director of Microsoft Indonesia. Both highlighted that Indonesia now has a solid technological foundation, and the next challenge is ensuring organisations make full use of it.
Dharma emphasized that the expanded cloud capabilities “open the door for every organisation to innovate in Indonesia, for Indonesia.” He encouraged companies to shift away from heavy dependence on foreign technologies and instead focus on building solutions tailored to the country’s unique needs and long-term economic goals.
From Using AI to Building AI: A New Stage for Indonesian Organisations
In the early stages of AI adoption, many Indonesian companies experimented with simple tools such as basic chatbots, automated workflows, and dashboard-style analytics. These solutions helped lay the groundwork for digital transformation, but the landscape is now evolving rapidly. Today, a growing number of organisations are shifting from using AI passively to actively building their own AI-powered systems.
Microsoft refers to these early innovators as Frontier Firms—companies that treat AI as an essential component of their operational strategy, not just a technological add-on. These firms use AI to enhance customer service, sharpen business insights, and streamline internal processes.
To support this emerging wave of AI builders, Microsoft has expanded the services available in the Indonesia Central region. The upgraded offerings include:
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Full development toolchains for building modern applications
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Cloud databases capable of handling structured and complex datasets
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AI-ready virtual machines designed to train and deploy advanced AI models
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High-performance computing systems that ensure sensitive data remains within Indonesian borders
These capabilities empower companies to run demanding AI workloads locally and comply with national data regulations. In addition, Indonesian users now have access to Microsoft 365 Copilot, boosting workplace productivity, and GitHub Copilot, which helps developers generate and refine code more efficiently.
Together, these technologies enable businesses to move beyond experimentation and transition into full-scale, production-ready AI deployment.
Early Successes: How Indonesian Industries Are Adopting AI
Since the opening of the Indonesia Central region in May 2025, demand for Microsoft’s local cloud services has risen across multiple sectors. Industries such as mining, travel, e-commerce, and manufacturing are increasingly migrating their operations to local cloud infrastructure to modernize systems and strengthen data protection.
Mining Sector
Major mining companies like Petrosea and Vale Indonesia are using Microsoft’s local cloud region to support digital transformation. By moving away from outdated legacy systems, they can store operational data securely, improve system reliability, and adopt cloud solutions that meet global regulatory standards.
Travel Sector
In the travel industry, tiket.com is emerging as a standout AI innovator. Using Azure OpenAI Service, the company developed an AI-based travel assistant that allows customers to interact with the platform through natural language. Travelers can now check flight information, modify bookings, or request additional services simply by typing or speaking to the assistant.
Irvan Bastian Arief, PhD, Vice President of Technology GRAND, Data & AI at tiket.com, explained that conversational AI helps make travel planning smoother and more intuitive. It also reduces the load on customer service teams by automating responses to routine inquiries.
These success stories highlight a growing trend: Indonesian companies are shifting away from generic AI tools and moving toward customised, intelligent solutions designed specifically for their operational environments.
Overcoming Data Fragmentation with Microsoft Fabric
One of the most common obstacles to AI adoption in Indonesia is fragmented data. Many organisations store their information across multiple systems, applications, or cloud platforms, making it difficult to create consistent analytics or build reliable machine-learning models.
To address this challenge, Microsoft introduced Microsoft Fabric, a unified data platform designed to centralize all data processes.
Fabric integrates:
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Data engineering
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Data integration
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Data warehousing
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Real-time analytics
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Business intelligence
Instead of switching between multiple tools, organisations can now manage all data activities in a single environment. Fabric also includes Copilot-powered features that help teams prepare, analyze, and interpret data more easily.
For companies preparing to scale AI responsibly, having a unified data foundation is essential—and Fabric provides a streamlined path to achieving this without expensive custom development.
Building Indonesia’s AI-Ready Workforce
Infrastructure alone will not drive Indonesia’s digital transformation. The country also needs a workforce capable of understanding, managing, and innovating with AI technologies. To address this need, Microsoft launched Microsoft Elevate, a nationwide training program designed to strengthen AI and digital skills.
Now in its second year, the initiative has already reached more than 1.2 million learners and aims to certify 500,000 Indonesians in AI skills by 2026.
Participants include:
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Students and educators
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Community and nonprofit leaders
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Professionals seeking new digital skills
Training is delivered through interactive tools such as Microsoft Copilot, Learning Accelerator, and Minecraft Education. These programs focus on practical learning and real-world problem-solving, ensuring that participants can apply AI in meaningful ways.
Dharma reiterated that cloud and AI technologies form “the backbone of national competitiveness” and that Indonesia must build a skilled workforce to fully realize the value of its digital infrastructure.
A Long-Term Vision: Building a Sustainable AI Ecosystem
Microsoft’s cloud expansion in Indonesia is part of a long-term US$1.7 billion investment plan running from 2024 to 2028. This investment covers new cloud infrastructure, workforce development, developer support, startup growth programs, and nationwide AI adoption initiatives.
Another important milestone is GitHub Universe Jakarta, scheduled for 3 December 2025. This event, the first of its kind in Indonesia, will bring together thousands of developers, researchers, and innovators to share ideas and accelerate the country’s digital progress.
With world-class infrastructure, modern AI tools, and expanded training programs, Indonesia is rapidly positioning itself as a regional leader in AI innovation. Businesses can now run AI workloads locally, developers have access to cutting-edge tools, and individuals can build essential future-ready skills.
Indonesia is no longer simply adopting global AI technologies—it is building, refining, and leading them, shaping Southeast Asia’s digital future.
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