Telkom taps Microsoft to drive digitalisation in Indonesia

Both parties build on Telkom’s network infrastructure to explore new market opportunities.

Telkom Indonesia and Microsoft have signed a strategic partnership agreement to accelerate digitalisation in Indonesia, strengthen the country’s intelligent infrastructure and enable the internal digital transformation of TelkomGroup.

Terms of the alliance will see both parties explore new market opportunities across a range of industry segments by building on Telkom’s network infrastructure. This is in addition to supporting Telkom’s ambitions of becoming a leading telecommunications provider in Indonesia, alongside spearheading Microsoft’s Berdayakan Indonesia initiative.

In a show of commitment from the technology giant, Satya Nadella -- CEO of Microsoft who visited Jakarta pre-pandemic in early 2020 -- formalised the partnership with Telkom’s second vice minister for State-Owned Enterprises (SOE), Kartika Wirjoatmodjo and president director, Ririek Adriansyah at the vendor's headquarters in Redmond.

“Building partnerships with technology leaders like Microsoft is one of Telkom’s strategic initiatives to strengthen the company’s portfolio, accelerate the transformation process, and improve the digital capabilities,” Adriansyah said.

“The initiative to establish strategic partnerships with several global tech companies is expected to have a positive impact on Telkom’s business development, especially in the digital platform and digital services domain. We welcome this collaboration with Microsoft to provide the greatest benefit to Indonesia’s digitalisation and vision of a connected country.”

On the intelligent infrastructure front, Telkom and Microsoft will cooperate in the utilisation of Telkom’s hyperscale data centre infrastructure assets and future operations of the vendor's new data centre region in Indonesia that was announced in early 2021.

The agreement also sees Telkom’s increased adoption of Microsoft’s cloud environment and cloud-based services, as well as improving the telco’s competencies through training and certification as part of its internal digital transformation process.

“Technology is at the heart of digital transformation across all industries but especially in the technology industry itself," added Dharma Simorangkir, president director of Indonesia at Microsoft. "By strengthening our relationship with Telkom, we intend to further assist Indonesia at every stage of the country’s digital transformation and build personalised services that take us closer to a Digital Indonesia."

Nurturing digital talent is also reinforced in the partnership as a key factor in realising Indonesia’s digitalisation goals.

The joint venture expands on the memorandum of understanding signed by Telkom and Microsoft in August 2021 which seeks to drive digital transformation and digital sovereignty in Indonesia.

Wirjoatmodjo further described his appreciation of the sync up and believes the combined strengths of both companies would "provide innovative and impactful services that can accelerate the digital transformation of Indonesia".