At least eight global tech giants have expressed interest in investing in Indonesia at the onset of the Prabowo Subianto – Gibran Rakabuming Raka administration. These companies are looking to establish factories and artificial intelligence (AI) centers.   

 

The tech giants are:   
 

1. Google   
2. Nvidia   
3. Apple   
4. Microsoft   
5. Yandex   
6. Nokia   
7. Tencent Cloud   
8. Alibaba Cloud   

Google and Nvidia to Build AI Center in Solo 

 

Google and Nvidia have committed to establishing an AI center in Solo. Nvidia CEO Jensen Huang is scheduled to visit Indonesia today (Nov 14) to attend AI Day 2024, hosted by Indosat.  

 

Nvidia plans to invest $200 million (around IDR 3 trillion) in the AI center, which will be located at Solo Technopark. Construction is set to begin this year, with completion expected within two years, making the facility operational by 2027.   

 

Apple to Build Factory in Bandung 

 

Apple has expressed interest in building a factory in Bandung, West Java, to produce iPhone and iPad accessories, with an investment value of $10 million (IDR 157.5 billion).   

 

This move follows the ban on iPhone 16 sales in Indonesia due to Apple’s lack of a Local Content Level (TKDN) certificate.   

 

According to Minister of Industry Regulation No. 29/2017, TKDN can be achieved through three schemes:   
 

1. Domestic product manufacturing   
2. Domestic application development   
3. Domestic innovation development   
   
    

Apple has opted for the third scheme, establishing Apple Academies in BSD, Batam, and Surabaya. The fourth academy in Bali is required for the TKDN certificate renewal.   

 

Febri Hendri Antoni Arif, a spokesperson for the Ministry of Industry, stated, “Once the fourth academy is realized, Apple can obtain TKDN certification and resume selling the iPhone 16.”   

 

Nokia, Microsoft, Yandex Express Investment Interest 

 

Representatives from Nokia, Microsoft, and Yandex recently met with Minister of Communication and Digital Affairs Meutya Hafid.   

 

Their investment plans include:   

• Microsoft: Following up on CEO Satya Nadella’s earlier AI investment commitment during his April visit to Indonesia.   
• Yandex: The Netherlands-based Yandex NV expressed interest in AI development and building data centers.   
• Nokia: Exploring digital infrastructure collaboration with the ministry.   
  
   

Tencent Cloud and Alibaba Cloud Expand Investment  

 

Tencent Cloud plans to establish its third Internet Data Center (IDC) in Indonesia as part of a $500 million investment commitment through 2030. This initiative aims to empower local businesses with cloud and AI solutions, boost the digital economy, and accelerate AI adoption.   
 

Alibaba Cloud has already set up three data centers and partnered with local institutions to train nearly 400,000 individuals in cloud and AI technologies. By 2033, it plans to double this number to 800,000.   

 

Additionally, Alibaba Cloud will establish a Skills Center at the University of Indonesia (UI) as part of its Academic Empowerment Program (AAEP), providing specialized training.   

 

These commitments were solidified during a cooperation signing with GoTo at the Indonesia-China Business Forum, witnessed by President Prabowo Subianto in Beijing. 

 

Original article here

This article is published in partnership with Katadata