Yandex and Microsoft to Invest in Indonesia's AI Ecosystem: Strategies to Boost National Digital Transformation

Jakarta, INTI - The Indonesian government is increasingly open to global investments in the technology sector, especially in artificial intelligence (AI). Minister of Communication and Digital, Meutya Hafid, welcomed the significant interest shown by technology giants Yandex Group and Microsoft in developing Indonesia’s AI ecosystem. This move is anticipated to accelerate comprehensive digital transformation nationwide.

During separate meetings with Yandex Search CEO Alexander Popovsky and Microsoft’s Head of ASEAN Government Affairs Maciej Surowiec, Meutya stated that AI technology holds substantial potential to support digital transformation efforts in Indonesia. "Artificial Intelligence is evolving rapidly worldwide. The role of AI for humanity continues to grow across many sectors. We appreciate Yandex Group and Microsoft’s interest in investing in Indonesia,” Meutya said following her meetings at the Ministry of Communication and Digital office in Jakarta on Thursday (11/07/2024).

Yandex’s Strategic Role in Enhancing Indonesia’s Digital Economy

Yandex Group expressed its desire to expand its search engine platform in Indonesia, hoping to compete healthily in a market dominated by several major platforms. Accompanied by Deputy Minister of Communication and Digital Nezar Patria, Meutya voiced her support for Yandex’s plans, noting Indonesia’s significant economic potential with AI implementation.

According to projections, AI development could add 12% to Indonesia’s GDP, equivalent to around USD 366 billion, by 2030. “The economic potential of artificial intelligence in Indonesia by 2030 is significant; Indonesia’s GDP could increase by 12% or USD 366 billion. Therefore, we support Yandex’s plan to boost its investment in Indonesia,” Meutya explained.

Microsoft's Investment in AI to Empower Communities

In her meeting with Maciej Surowiec from Microsoft, Meutya expressed her hopes that Microsoft’s commitment will positively impact community empowerment. Microsoft has already demonstrated support for Indonesia’s digital development, especially since CEO Satya Nadella’s visit in April 2024, affirming Microsoft’s commitment to the nation.

“We hope Microsoft's commitment will add value, particularly by empowering communities through AI technology, supporting public organizations, community empowerment, and maintaining information security,” Meutya continued. AI technology utilization in public sectors is expected to have a direct impact on communities, offering improved services and enhanced information security.

The Significance of Healthy Competition in the Digital Space

Deputy Minister of Communication and Digital Nezar Patria emphasized the need for healthy competition in Indonesia’s digital sector. Nezar hopes that the entry of global companies will positively impact local innovation and strengthen an inclusive digital ecosystem. “We hope that fair competition will be fostered in the digital platform arena,” he affirmed.

This investment aligns with the government’s vision to position Indonesia as a digital technology hub in Southeast Asia. Through collaboration between the government and global tech companies, Indonesia's AI ecosystem is expected to develop further, benefiting the wider population.