Indonesia is getting what it wanted from foreign companies. Tencent’s investment is proof of this

Indonesian government wants companies to do business in its territory invest adequatelyIf they do not do so, they may have trouble continuing to offer some of their products or services. We have already seen this with the ban on the sale of the iPhone 16 and Pixel due to the lack of so-called National Component Level Certificate (TKDN).

It seems that Tencent will not have these types of problems. The Chinese technology giant has announced a $500 million investment in Indonesia. These are funds that will cover the construction of its third data center in the region in partnership with Gotu Group and Alibaba Group. But there are other investments that promise to reach this Southeast Asian country soon.

Indonesia receives more foreign investment

The announcement was made during Indonesian President Prabowo Subianto’s state visit to China last weekend, RM.ID reports. 500 million dollars The deal is part of a package of foreign investments from Tencent that promises more than $10 billion. What will all this money be used for? Promoting cloud computing business.

The idea is that Southeast Asia’s largest economy can offer its companies and startups a more solid infrastructure with respect to all types of cloud services, including artificial intelligence (AI). This is within the framework of a program called “Golden Indonesia 2045 Vision”, which seeks to strengthen industry and service sectors in Indonesia for the centenary of the country’s independence.

Goto, an Indonesian conglomerate, needs to rely on external partners on topics such as data analytics, artificial intelligence, cybersecurity and cloud infrastructure. Chinese companies like Alibaba and Tencent Take advantage of this requirement, but to operate in the country they must comply with a number of strict requirements that translate into local investment, which, as we have seen, the Indonesian government adheres to.

Data managed by both GoTo and its partners must be stored in Indonesia. The only way to ensure this national data sovereignty requirement is to set up more data centers in the country, as was recently promised. Similarly, the government has managed to close an agreement to train Indonesian workers in subjects related to the “new global digital economy”.

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