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Russian Tech Giant Yandex Eyes Investment in Indonesia’s Digital and AI Sectors

by Raidi
2024-11-13
in Tech & Science
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Yandex investment

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Jakarta, Indonesia Sentinel — Russian tech giant Yandex is set to make a significant investment Indonesia’s digital sector. The Russian ‘google’ competitor will be focusing on Indonesia’s digital infrastructure and artificial intelligence (AI) development.

Deputy Minister of Communication and Digital (Komdigi), Nezar Patria confirmed the news during the launch of a digital transformation study titled “Bright Prospect, Lingering Shadows” by the United Nations Development Programme (UNDP) in Jakarta on Monday, November 11.

The investment discussions were preceded by a meeting between Communication and Digital Minister Meutya Hafid and Yandex Search CEO Alexander Popovsky on Thursday November 7, where they discussed Yandex’s investment plans to bolster Indonesia’s AI ecosystem.

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“Yes, there are many companies looking to invest in Indonesia, including Yandex. This follows our ongoing international engagements with Russia, China, the United States, and various European nations,” Nezar Patria stated.

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He added that Indonesia’s promising economic growth has attracted foreign tech company, with Yandex being one of the latest to express interest. However, Komdigi has yet to disclose the specific value of Yandex’s planned investment.

Focus on Digital Infrastructure and AI Development

Yandex is a technology company that builds intelligent products and services powered by machine learning. Yandex provides internet-related services such as search engines, web browsers, online maps, cloud servers, and e-commerce.

Nezar mentioned that Yandex is particularly interested in the digital infrastructure sector and is exploring the possibility of establishing data centers in Indonesia. Additionally, the Russian company plans to collaborate with local partners to advance AI technology and nurture digital talent in the country.

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Nezar also underscored the importance of regulatory compliance for foreign investors. “Any company looking to invest in Indonesia, including Yandex, must adhere to our national regulations,” he stated, signaling the government’s commitment to upholding its digital sovereignty.

Growing Interest from Global Tech Giants

Yandex is the latest in a series of global tech company looking to make an investment in Indonesia’s digital sector. Major players such as Nvidia and Microsoft have already announced their intentions to invest.

Nvidia, has partnered with Indosat Ooredoo Hutchison, and recently announcing their plans to establish an AI center in Solo.

Meanwhile, in April, Microsoft CEO Satya Nadella visited Indonesia, unveiling a significant $1.7 billion investment over the next four years. This investment will support the development of cloud and AI infrastructure, provide AI skill training for 840,000 Indonesians, and offer support to the local developer community.

The influx of foreign investments highlights Indonesia’s growing appeal as a hub for digital innovation and AI development, positioning the country as a key player in the Southeast Asian tech landscape.

 

(Raidi/Agung)

Tags: InvestmentrussiaTech GiantYandex
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