Microsoft has opened its first cloud region in Indonesia, helping businesses worldwide in ideating, developing, and scaling digital innovation in the Asian country.

The region, known as Indonesia Central, provides an AI-ready hyperscale cloud infrastructure that promises in-country data residency, heightened security, and reduced latency.

The strategic move aligns with Microsoft’s commitment to invest $1.7bn in Indonesia from 2024 to 2028, aiming to bolster the nation’s position as a global economic force through digital innovation.

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.” 

International Data Corporation’s latest study suggests that Microsoft and its ecosystem could generate approximately $15.2bn in new economic value from 2025 to 2028, with the Indonesia Central cloud region expected to contribute 16.5% of this figure and creating over 106,000 new jobs.

The Indonesia Central cloud region boasts three availability zones, offering robust security and sustainability features, including enterprise-grade stringent security, global connectivity, local data residency, and compliance with Microsoft’s global sustainability goals.

The cloud region provides cutting-edge services for productivity, data analytics, cybersecurity, computing, and storage. It is already available with a range of Microsoft Azure services, with more to come, including Microsoft 365 Copilot and Microsoft Azure OpenAI Service.

This infrastructure empowers organisations to innovate and transition to the cloud while adhering to data residency, security, and compliance requirements.

The Indonesia Central cloud region’s launch reflects the country’s increasing demand for digital transformation, with over 100 organisations already leveraging its capabilities. Companies like Astra International, the Ministry of Finance, and Pertamina are using Microsoft’s technologies to enhance operational efficiency and drive innovation.

Microsoft’s dedication to Indonesia’s digital ecosystem extends to community empowerment through initiatives like elevAIte, the Nusantara Data Center Academy, and the Community Empowerment Fund. These programmes aim to equip Indonesian talents with AI skills and support the development of a skilled workforce.

In addition, Microsoft has plans to support Indonesia’s AI transformation through the potential establishment of an AI Center of Excellence, which would unite stakeholders to accelerate AI adoption and innovation.