New Microsoft Cloud Updates Accelerate Indonesia’s AI Ambitions
Indonesia is rapidly advancing its AI-driven growth as more local organizations seek to develop their own applications, upgrade existing systems, and enhance data governance. This momentum is supported by new Microsoft cloud updates that expand the services available in the Indonesia Central cloud region. Launched six months ago, this region now offers broader access to cloud and AI tools, enabling businesses, government agencies, and developers to run AI workloads within the country rather than relying on overseas data centers.
The announcement of these new Microsoft cloud updates was made at the Cloud & AI Innovation Summit in Jakarta. The event brought together business and government leaders to explore ways Indonesia can further its AI goals. Key speakers included Mike Chan, head of Azure AI Apps & Agents in Asia, and Dharma Simorangkir, President Director of Microsoft Indonesia. They emphasized that local technological capacity is valuable only if organizations actively leverage it to innovate and solve real challenges.
During the summit, Dharma highlighted that the new services “open the door for every organisation to innovate in Indonesia, for Indonesia.” He urged teams across various sectors to develop solutions that address the nation’s specific needs, signaling a shift from merely adopting AI to actively building AI-driven tools.
Supporting Indonesia’s Shift Toward AI-Driven Innovation
Many Indonesian enterprises are moving beyond simple AI experiments. They are now designing custom tools that address unique operational challenges. Microsoft refers to these companies as Frontier Firms—organizations that integrate AI as a fundamental part of their operations rather than treating it as an optional enhancement. These firms focus on creating applications that simplify customer interactions, streamline internal workflows, and modernize outdated processes.
To support this transition, the Indonesia Central cloud region now hosts a variety of Azure services designed to help teams build and deploy software efficiently. These include tools for creating data-connected applications, services for managing structured data, and AI-ready virtual machines capable of training and running complex models. The availability of powerful computing resources within the country allows teams to keep sensitive data local while handling demanding AI workloads.
Additionally, the region now supports Microsoft 365 Copilot, which integrates AI features into everyday work tools. Developers also have access to GitHub Copilot, an AI assistant that suggests code and accelerates software development. Together, these services form a cohesive technology stack that helps organizations move beyond small pilot projects and scale AI solutions with greater reliability and cost control.
New Microsoft Cloud Updates Foster Long-Term AI Growth in Indonesia
Since the launch of the Indonesia Central cloud region in May 2025, demand has steadily increased. Companies in industries such as mining, travel, and digital services are already leveraging local cloud infrastructure to modernize legacy systems and comply with stricter data governance regulations. Notable users include Petrosea and Vale Indonesia, which utilize the region for technical upgrades and secure data storage.
Digital-first companies are also exploring more direct applications of AI. For example, tiket.com developed its own AI travel assistant using the Azure OpenAI Service. This assistant enables customers to interact with the platform using everyday language, handling tasks like checking flight updates and adding extra services after booking. Irvan Bastian Arief, Vice President of Technology GRAND, Data & AI at tiket.com, explained that their AI advancements aim to provide the best possible customer experience by simplifying travel planning and reducing friction in customer support.
A key theme at the summit was the importance of organizing data before scaling AI adoption. To address this, Microsoft introduced Microsoft Fabric to the Indonesian market. Fabric is a unified platform that combines data engineering, integration, warehousing, analytics, and business intelligence. It includes Copilot features that assist teams in preparing data and generating insights without juggling multiple tools. Many organizations face challenges with data scattered across various internal systems and cloud providers. Fabric offers a centralized environment to unify these data sources, improving governance, accelerating reporting, and controlling costs. It is designed for teams seeking a structured data foundation without building one from scratch.
Beyond infrastructure, Microsoft also highlighted its AI training program, Microsoft Elevate, which is now in its second year. The program has reached over 1.2 million learners and aims to certify 500,000 individuals in AI skills by 2026. The next phase will emphasize practical application, encouraging participants to use AI in real-world scenarios rather than just learning theoretical concepts. Training targets diverse groups, including teachers, nonprofit workers, community leaders, and those seeking to enhance their digital skills. Participants learn through tools such as Microsoft Copilot, Learning Accelerator, Minecraft Education, and modules that demonstrate how AI can support practical tasks.
Dharma stressed that cloud and AI “are the backbone of national competitiveness” and emphasized that infrastructure alone is insufficient without a prepared workforce ready to utilize it.
Microsoft’s commitment to Indonesia extends beyond technology deployment. The company has pledged US$1.7 billion from 2024 to 2028 to support infrastructure, partner ecosystems, and talent development. It is also preparing to host GitHub Universe Jakarta on December 3, 2025, a developer-focused event designed to foster collaboration among software teams, startups, and researchers.
With the expansion of the Indonesia Central cloud region, the introduction of new data and AI tools, and a strong focus on workforce training, Indonesia is laying the groundwork for sustainable digital growth. Companies now have the option to build AI systems closer to home, developers have access to enhanced resources, and workers have more opportunities to gain practical AI skills. The coming years will reveal how these efforts come together as organizations transition from experimentation to long-term AI adoption.
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Source: original article.