Indonesia’s journey toward AI-driven growth is entering a more practical and execution-focused phase as local organisations increasingly look to build, modernise, and manage their own intelligent systems. With the expansion of Microsoft services in the Indonesia Central cloud region, businesses and public institutions now have stronger access to cloud and AI tools that allow them to run advanced workloads within national borders. This development supports Indonesia’s broader goal of strengthening digital sovereignty while enabling innovation across industries.
The announcement was highlighted during the Cloud & AI Innovation Summit held in Jakarta, where leaders from government, enterprise, and the technology ecosystem gathered to discuss how AI can be applied meaningfully at scale. Microsoft executives shared a clear message during the summit: access to AI infrastructure alone is not enough, and real value comes only when organisations actively build solutions that address local needs.
Microsoft’s Indonesia Central cloud region gains new momentum
The Indonesia Central cloud region, which became operational earlier in 2025, has seen steady adoption from local enterprises. Microsoft has now expanded the range of Azure services available in the region, giving organisations greater flexibility to deploy applications, manage sensitive data, and run AI models without relying on overseas data centres. This is particularly important for sectors facing strict data governance requirements or seeking lower latency for AI-powered services.
By hosting AI-ready virtual machines, data storage services, and application development tools locally, the region allows teams to work with advanced computing workloads while keeping data inside the country. This approach supports both compliance and performance, two critical factors for enterprises moving beyond experimental AI projects.
From AI adoption to AI creation in Indonesian enterprises
A noticeable shift is taking place among Indonesian organisations as they move from testing ready-made AI features to designing their own solutions. Microsoft refers to these organisations as Frontier Firms, teams that integrate AI into their core operations rather than treating it as an optional layer. These firms focus on solving specific operational challenges, improving customer experiences, and modernising outdated workflows through custom-built applications.
To support this transition, the Indonesia Central region now offers a connected stack of tools that help teams design, deploy, and scale AI-driven software. Microsoft 365 Copilot is available to bring AI assistance into everyday work applications, while GitHub Copilot helps developers write and refine code more efficiently. Together, these services help organisations move from small pilots into production environments where reliability, security, and cost management become essential.
Early enterprise use cases show practical value
Since the region’s launch, several Indonesian companies have already begun using the local cloud infrastructure to support digital transformation efforts. Enterprises in sectors such as mining, travel, and digital services are leveraging the region to upgrade legacy systems and align with evolving data protection standards.
Companies like Petrosea and Vale Indonesia are using the infrastructure to support technical modernisation while ensuring data remains stored locally. In the digital services space, tiket.com has built an AI-powered travel assistant using Azure OpenAI Service. This conversational assistant allows customers to interact naturally with the platform, whether checking flight details, managing bookings, or adding services after purchase. The approach demonstrates how AI can reduce friction in customer support while making digital experiences more intuitive.
Addressing data fragmentation with Microsoft Fabric
A recurring topic at the summit was the challenge of scattered and fragmented data, which often slows down AI adoption. To help address this issue, Microsoft introduced Microsoft Fabric to the Indonesian market. Fabric provides a unified environment that brings together data integration, engineering, analytics, warehousing, and business intelligence within a single platform.
By consolidating multiple data processes into one system, Fabric helps organisations improve governance, simplify reporting, and gain faster insights without building a complex data foundation from scratch. Built-in Copilot features further assist teams in preparing data and generating insights, making the platform accessible even to organisations with limited data engineering resources.
Building practical AI skills for Indonesia’s workforce
Infrastructure development is being matched with a strong focus on human capability. Microsoft highlighted the progress of its Microsoft Elevate programme, which is now entering its second year. The initiative has already reached over 1.2 million learners across Indonesia and is targeting large-scale AI skill certification by 2025.
The next phase of the programme emphasises hands-on application rather than theoretical learning. Participants from diverse backgrounds, including educators, nonprofit workers, community leaders, and professionals, are encouraged to use AI tools in real-world scenarios. Training resources include Microsoft Copilot, Learning Accelerator, Minecraft Education, and practical modules designed to show how AI can support everyday tasks and decision-making.
A long-term ecosystem approach to AI growth
These developments are part of Microsoft’s broader commitment to Indonesia, backed by a US$1.7 billion investment spanning infrastructure, partner ecosystems, and talent development from 2024 to 2028. As part of this effort, Microsoft is also preparing to host GitHub Universe Jakarta in December 2025, bringing developers, startups, and researchers together to encourage collaboration and knowledge sharing.
Indonesia is steadily positioning itself as a regional hub for secure and inclusive AI development. With expanded cloud capabilities, improved access to data and AI tools, and a growing emphasis on workforce readiness, the foundations are being laid for sustainable digital growth. As organisations transition from experimentation to long-term AI use, the real test will be how effectively these tools and skills are combined to deliver lasting economic and social impact.
