Microsoft cloud updates support Indonesia’s long-term AI goals

Indonesia’s push toward AI-driven growth is gaining momentum as more local organizations look for ways to build their own applications, modernize their systems, and strengthen data oversight. The country now has wider access to cloud and artificial intelligence tools after Microsoft expanded services available in Indonesia’s central cloud region, which it first launched six months ago. This expansion gives companies, public agencies, and developers more options to run AI workloads in-country rather than in offshore data centers.

The update was shared at the Cloud and AI Innovation Summit in Jakarta, where business and government leaders met to discuss how Indonesia can boost its AI ambitions. Speakers included Mike Chan, who leads Azure AI applications and agents in Asia, and Dharma Simorangkir, president and Director, Microsoft Indonesia. Their message was that local capacity would only be useful if organizations put it to work.

During the event, Dharma said the new services “open the door for every organization to innovate in Indonesia, for Indonesia,” calling on teams across sectors to build solutions that meet national needs.

Shift towards building, not just adopting

Many Indonesian companies are moving beyond basic AI experiments and are now designing tools that solve problems unique to their operations.

Microsoft describes these types of organizations as frontier companies — teams that treat AI as a core part of how they work rather than an optional add-on. Companies tend to focus on building applications that make tasks easier for customers, improve internal processes, or modernize legacy workflows.

To support this transformation, the Central Indonesia region now hosts a set of Azure services that help teams build and deploy software. They include tools for building data-related applications, services for storing and managing structured data, and a set of AI-ready virtual machines that can train and run advanced models. Machines designed for heavy computing work allow teams to keep data in-house while working with complex AI workloads.

The region now supports Microsoft 365 Copilot, bringing AI features to popular business tools. Developers also have access to GitHub Copilot, which suggests code and speeds up the software development process. These services form a connected package that helps teams move beyond small pilot programs and move into production, where reliability and cost control are most important.

Microsoft’s early cloud projects emerged in Indonesia

The region’s expansion follows steady demand since its launch in May 2025. Companies in mining, travel and digital services are already using local cloud infrastructure to modernize legacy systems and meet more stringent data governance needs.

Petrosea and Vale Indonesia are among the companies using the region to support technology upgrades and secure local data storage. Digital players are also experimenting with more direct interaction with AI. One example is tiket.com, which built its own AI-powered travel assistant using the Azure OpenAI service. The assistant allows customers to interact with the platform in everyday language, from checking flight updates to adding additional services after booking.

“Our advances in AI are designed to deliver the best possible experience for our customers,” said Irvan Bastian Arif, Vice President of Technology, Data and AI at tiket.com.

The company sees conversational AI as a way to make travel planning simpler while reducing friction in customer support.

Bring dispersed data into one system

The main theme at the summit was the need to put data in order before AI is widely adopted. To support this, Microsoft has introduced Microsoft Fabric to the Indonesian market. Fabric is a single environment that combines data engineering, integration, warehousing, analytics, and business intelligence. Includes Copilot features that help teams prepare data and build insights without having to juggle multiple tools.

For many organizations, data resides in different on-premises systems and cloud providers. Fabric gives teams one place to bring these sources together, which can help improve management, speed up reporting, and control costs. The platform is designed for teams that want architecture without creating their own data foundation from scratch.

Preparing Indonesia’s workforce for practical AI using Microsoft tools

Today’s focus was not limited to infrastructure. Microsoft also highlighted its AI training program, Microsoft Elevate, which is now in its second year. The program has already reached more than 1.2 million learners and aims to certify 500,000 people in AI skills by 2026. The next phase will focus on practical use, encouraging participants to apply AI in real environments rather than learning only theoretical concepts.

The training covers a wide range of groups – teachers, non-profit workers, community leaders and people looking to improve their digital skills. Participants learn through tools such as Microsoft Copilot, Learning Accelerator, and Minecraft Education, and modules designed to demonstrate how AI can support practical tasks.

During the summit, Dharma said that cloud and artificial intelligence “form the backbone of national competitiveness,” and stressed that infrastructure is only important if people are willing to use it.

Building a long-term ecosystem

Such efforts are part of a broader US$1.7 billion commitment Microsoft has made to Indonesia from 2024 to 2028. The investment extends to infrastructure, partner support, and talent development. The company is also preparing to host GitHub Universe Jakarta on December 3, 2025, a developer-focused gathering aimed at encouraging collaboration between software teams, startups, and researchers.

Indonesia aims to position itself as a hub for safe and inclusive AI development in the region. With Indonesia’s expanding cloud-centric region, new data and AI tools, and growing interest in workforce training, the country is taking steps to build the foundations for long-term digital growth. Companies now have the option of building AI systems closer to home, developers have more resources, and workers have more paths to gain practical skills.

The coming years will show how these pieces fit together as organizations move from experimentation to long-term use.

(Photo by Simon Ray)

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