Microsoft has launched its first cloud region in Indonesia, called Indonesia Central.

This is part of its US$1.7 billion investment plan to support the country’s digital and AI transformation from 2024 to 2028.

The announcement was made at the Microsoft AI Tour in Jakarta, which gathered over 800 representatives from business and government.

Indonesia Central offers in-country data residency, enhanced security, and lower latency.

It features three availability zones and is connected to Microsoft’s global cloud network, allowing local organisations to access computing, storage, and AI tools while meeting regulatory requirements.

According to IDC, Microsoft, its partners, and customers could generate US$15.2 billion in new economic value in Indonesia between 2025 and 2028.

The new cloud region is projected to contribute 16.5% of that total and support the creation of more than 106,000 jobs.

The facility follows Microsoft’s global security and compliance standards and supports its sustainability goals, including becoming carbon negative by 2030, achieving zero waste, and replenishing more water than it consumes.

Over 100 organisations have adopted the cloud region, including Adaro, BCA, Pertamina, Telkom Indonesia, Siloam Hospitals, and the Ministry of Finance.

Many are using Microsoft’s infrastructure to modernise operations and improve service delivery.

The Ministry of Finance is working to align its cloud adoption with regulatory and institutional objectives.

Microsoft is also investing in talent development through its elevAIte programme, which aims to train one million Indonesians in AI skills by 2025.

Other initiatives include vocational training for data center operations and a community fund supporting digital education in schools near its facilities.

At the Jakarta event, Microsoft also announced plans to explore an AI Center of Excellence to bring together stakeholders and accelerate AI adoption in line with national priorities.

The launch builds on Microsoft’s three-decade presence in Indonesia and expands its global cloud footprint to meet growing demand for secure and scalable digital infrastructure.

Scott Guthrie, Microsoft’s Cloud & AI Executive Vice President, 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 organisation, and every government institution to innovate locally and scale globally.”

Dharma Simorangkir, President Director, Microsoft Indonesia, said,

“For 30 years, Microsoft made it our commitment to empower Indonesia.

Today, we take the next step forward by opening the Indonesia Central cloud region, which expands Microsoft’s global network of over 70+ Azure regions worldwide, the most of any cloud provider. This is more than an infrastructure, this is a foundation for national progress.”