Building the Foundations for Indonesia’s AI Future

By Dharma Simorangkir, President Director at Microsoft Indonesia

Transformations in Technology Over the Years

In the last 30 years, the technology landscape has evolved significantly through four major phases. We transitioned from the PC-server era, to the explosive growth of the internet, followed by the mobile and cloud era. We are now entering a fourth phase, powered by artificial intelligence (AI), which is transforming industries and how businesses operate. A specific type of AI known as generative AI is particularly accelerating this change, pushing companies to adapt swiftly in order to remain competitive.

AI Adoption in Indonesia

In Indonesia, the embrace of AI is impressive. A staggering 92% of knowledge workers use generative AI in their roles, which surpasses the global average of 75% and the Asia Pacific average of 83%. Business leaders in Indonesia are also acknowledging the importance of AI for competitiveness, with 92% stating that it’s crucial for staying ahead, compared to the global average of 79% and the Asia Pacific figure of 84%.

Indonesians are utilizing AI not just as a tool, but also as a foundational platform for development. Here are some examples:

• The GoTo Group has reported that their engineers save an average of seven hours per week by using GitHub Copilot.
• Telkomsel’s virtual assistant, Veronika, powered by Azure OpenAI Service, has improved customer service efficiency, raising self-service rates from 19% to 45%.
• PT Bank Rakyat Indonesia is enhancing customer service with an instruction search engine and streamlining marketing content through Azure Cognitive Search.
• BINUS University has improved admission planning accuracy to 90% through Azure Machine Learning and created thousands of documents using Azure OpenAI Service.
• Mitra Netra Foundation is using Azure OpenAI Service to convert Arabic text from images into accessible formats for the visually impaired.
• Toy photographer Mate Tampan has been using Microsoft Copilot to create stunning backgrounds for his shoots.

These innovations highlight the value of AI and its capacity to inspire rapid growth across various sectors, showcasing just the beginning of a new AI era that has taken shape only within the past two years.

Looking Ahead: The Future Beyond 2025

As we approach Microsoft’s 50th anniversary in April 2025, our mission remains: to empower every individual and organization. Our future success relies on how effectively we leverage AI alongside other technologies to enhance human potential and bring about positive societal changes. The innovations we are developing now will leave a lasting impact for decades to come.

Focus Areas for Long-Term Development in Indonesia

Specific to Indonesia, two critical components will be crucial for advancements in AI and cloud technology: robust infrastructure and AI-skilled talent. This effort will be based on a foundation of security and responsible AI usage.

In 2021, Microsoft announced its commitment to establish the first cloud region in Indonesia, which has been further strengthened by a recent investment of $1.7 billion aimed at enhancing Indonesia’s cloud and AI capabilities. Here’s what we can expect:

Expanding Infrastructure: Indonesia Central Region

Set to launch in the second quarter of 2025, the Indonesia Central region will expand Microsoft’s existing global network of Azure regions. When operational, it will:

• Generate approximately $2.5 billion in new economic value, equating to 16.5% of the projected $15.2 billion economic growth from Microsoft, partners, and customers in the next four years (2025-2028).
• Support the creation of approximately 106,295 new jobs across various sectors, including manufacturing, finance, media, and government.

Skill Development Initiatives: elevAIte Program

As the need for AI expertise grows, Microsoft and its partners have already trained over 704,000 people on essential digital skills required for the evolving AI landscape. To accelerate this initiative, the elevAIte Indonesia program was launched in December 2024. This program aims to equip 1 million individuals with AI-specific skills by 2025 through collaboration with the Ministry of Communication and Digital Affairs. In just a few months, elevAIte has attracted 18 partners from government, industry, and educational sectors to promote inclusive AI training across the country.

Empowering Changemakers in Indonesia

While technology is essential, it is the people who leverage it that drive genuine progress. The real potential of AI lies in its use to address real-world challenges and foster meaningful change. Across Indonesia, numerous individuals are transforming their communities using AI, including educators, civil servants, and entrepreneurs. Their inspiring stories exemplify how technology can serve as a catalyst for growth and opportunity.

By building a skilled workforce in AI, Indonesia is paving the way for a future where innovation is the norm, driving forward digital transformation, and ensuring that technology acts as a tool for inclusion and progress.