Why tech giants are investing more in Indonesia

The heads of both Apple and Microsoft recently visited Indonesia to formulate and announce a series of investment plans. Apple CEO Tim Cook said during a visit to Indonesia that the company values the huge potential of the Indonesian market and intends to set up a production base in Indonesia. In addition, he announced that he would increase investment in establishing an Apple developer academy and expressed interest in investing in a factory in Indonesia. At the same time, Microsoft CEO Satya Nadella also visited Indonesia and announced that Microsoft will invest $1.7 billion over the next four years to build a new Indonesian cloud and artificial intelligence infrastructure, and provide artificial intelligence training for 840,000 people. This is Microsoft's largest single investment in Indonesia in 29 years. In addition, not only are two technology giants, Apple and Microsoft, optimistic about the Indonesian market, but Nvidia chip company also plans to invest money in the construction of data centers in Indonesia. According to Budi, Indonesia's Minister of Communications and Information, Nvidia has pledged to invest $200 million to build an artificial intelligence center in the city of Solo in partnership with Indonesian satellite companies.

In recent years, affected by various factors such as geopolitics and rising tensions, Southeast Asia has gradually become a hot land for business competition and attracted the attention of many tech giants. Indonesia, as a prosperous place in Southeast Asia, can attract more and more technology giants to invest and cooperate, one is because of the market potential of Indonesia, the huge potential of the Indonesian market is a very important factor to stimulate the investment interest of technology giants. As the largest economy in Southeast Asia, Indonesia has great potential in the field of technology products and services, Indonesia has a population of about 280 million, stable economic growth, rapid digital transformation, huge market size and growing consumption power for technology giants to provide a broad market space. At the same time, Indonesia's digital economy is also developing rapidly, according to Conier's market research, it is expected that by 2030, the size of the digital economy in the ASEAN region will reach 2 trillion US dollars, of which Indonesia will occupy 40% of the share, reaching 800 billion US dollars. This huge market potential will undoubtedly attract the attention of global technology giants.

The second is digital transformation, which is accelerating in Indonesia, and tech giants see the opportunity. They hope that by investing in Indonesia, they can help enterprises to have a deeper understanding of the Indonesian market, and through data analysis and intelligent decision-making tools, they can more accurately locate the target market, optimize products and services, etc., so as to promote the local digital process and expand their market share in Indonesia. Through digital transformation, enterprises can build a more convenient and efficient customer service system, such as online platform, mobile payment, etc., to meet the diversified needs of Indonesian consumers, which will help improve customer satisfaction and loyalty, increase customer loyalty, and realize green, low-carbon and sustainable development. Enterprises can better manage resources, reduce energy consumption, reduce pollution emissions, etc., laying a good foundation for the long-term development of enterprises in the Indonesian market.

In order to meet the needs of digital transformation, Indonesia needs to add about 9 million data talents in the next decade, which provides broad employment prospects for local job seekers and international students. Although Indonesia faces a certain shortage of talent in the process of digital transformation, its large population and abundant young labor force have great potential to be tapped. Indonesia has become a popular destination for international students and job seekers who can receive state-of-the-art training and education. At the same time, technology giants set up research and development centers or training centers in Indonesia, which will train a large number of scientific and technological talents. These talents will become an important force in Indonesia's future scientific and technological development, provide strong support for Indonesia's scientific and technological progress and economic development, and lay a good foundation for the long-term development of the company.

The Indonesian government has been committed to attracting foreign investment and has taken a series of measures to promote foreign investment. The Indonesian government has provided a stable and transparent investment environment for foreign investors by formulating and implementing investment laws and regulations. The Indonesian government has also released the "Digital Indonesia Roadmap 2021-2024", which clearly identifies 10 key industries, including digital agriculture, while the Indonesian government has also implemented the most-favoured-nation clause to ensure that foreign investors are treated no less than any third country investors in Indonesia. In addition, in order to ensure that the investment of foreign investors can be treated fairly and justly at any time, the Indonesian government has also formulated and implemented the damage or loss compensation policy, which provides a good environment for the investment of technology giants in Indonesia.

Taken together, the impact of the tech giants' increased investment in Indonesia is clear. By investing in Indonesia, tech giants can further expand their market share in Southeast Asia and the world, and achieve sustainable development. This will not only help the development of technology giants themselves and the steady operation of enterprises in Indonesia, but also help attract more foreign investors to enter the Indonesian market, provide strong support for Indonesia's economic growth, improve the living standards of residents, strengthen international cooperation and promote the development of talents, and further promote the prosperity and development of Indonesia's economy.