Telkom Indonesia President Director Ririek Adriansyah (second from right, bottom) with Microsoft Indonesia President Director Haris Izmee (second from left, bottom) after signing the MoU on Digital Transformation Strategic Partnership between Telkom Indonesia & Microsoft Indonesia, as witnessed by Deputy Minister of SOEs II Kartika Wirjoatmodjo (top, center), Telkom President Commissioner Bambang Permadi Soemantri Brodjonegoro (far right, top), Telkom Commissioner Ismail (far right, bottom), President of Microsoft Asia Ahmed Mazhari (far left, top), & President of Microsoft Asia Pacific Andrea Della Mattea (far left, bottom) online on Thursday (19/8).

Jakarta, August 19, 2021 – PT Telkom Indonesia (Persero) Tbk (Telkom) and PT Microsoft Indonesia officially announced a collaboration today, Thursday (19/8), to accelerate digital transformation and realize digital sovereignty in Indonesia. This collaboration will encompass a number of fields such as the development of national intelligent infrastructure, development of digital talent, and acceleration of TelkomGroup's digital transformation.

The signing of the Memorandum of Understanding between Telkom President Director Ririek Adriansyah and Microsoft Indonesia President Director Haris Izmee was carried out online using Microsoft Teams. The signing was witnessed by Deputy Minister of SOEs II Kartika Wirjoatmodjo, Telkom President Commissioner Bambang Brodjonegoro, Microsoft Asia President Ahmed Mazhari, Microsoft Asia Pacific President Andrea Della Mattea, Telkom's Board of Commissioners and Board of Directors, and the Microsoft leadership.

This partnership will support the empowerment of Indonesia's digital economy, in addition to accelerating the operational transformation of TelkomGroup, which offers nationwide service. This partnership is important as Indonesia's digital economy is projected to grow eightfold by 2030.

In her remarks at the event, Deputy Minister of SOE II Kartika Wirjoatmodjo said that digital transformation is critical in optimizing technology towards increasing the national competitiveness, accelerating the development to deliver positive impact for Indonesian people.

The COVID-19 pandemic has accelerated digital transformation, not only in people's lives but also in a business context. For this reason, it is necessary to involve digital telecommunications companies such as Telkom as a digital hub for SOEs, as well as corporations to encourage digitalization. Telin aims to become a trusted partner for the government in expanding and strengthening the application of technology in every aspect of daily life.

"The Ministry of SOEs welcomes the collaboration of Telkom & Microsoft as a strategic partnership towards realizing the national digitalization program, in accordance with Ministry of SOEs priority of Business Model Innovation, namely to Refocus and Reinvent core business models using new technology, partnerships, and ecosystem building. This strategic partnership can support Telkom to continue deepening its digital expertise so as to deliver optimal value for the nation and state. This is in line with the priority goals of the Ministry of SOEs, as well as to maintain and improve Telkom's leadership in the digital industry through skillful, best-in-class technology leadership and digital talent," said Kartika Wirjoatmodjo.

Telkom President Director Ririek Adriansyah said that Telkom is currently transforming into a leading digital telecommunications company by continuing to strengthen infrastructure in the form of building digital platforms and services for the community, towards accelerating the realization of national digital sovereignty in Indonesia.

One of Telkom's strategies to accelerate the company's transformation process and realize Indonesia's digital sovereignty is through collaboration with a number of global tech giants. Collaboration is necessary given the dynamic business situation and fast changing technological developments. Therefore, Telkom decided to cooperate with Microsoft to strengthen Telin’s competence and capability in delivering digital services, platforms, and connectivity, towards providing the best digital experience in accordance with the demands and changing behavior of customers and society today.

“This partnership is the first step in a long-term collaboration between Telkom and Microsoft to make a significant contribution to the growth of the domestic digital economy. Telkom itself also continues to be open to establishing partnerships with tech giants and global players who will provide the best synergy value for companies and make Indonesia better," said Ririek.

Telkom's partnership with Microsoft is expected to help provide solutions for digital infrastructure, platforms for processing data and information, and digital talent.

Haris Izmee, President Director of Microsoft Indonesia said, “Over the past 26 years, Microsoft has worked hard to empower every organization and individual in Indonesia with the skills, tools, and processes to welcome digitization. The partnership with Telkom Indonesia to create an intelligent cloud platform in line with the entrepreneurial spirit that is evident in Indonesia – from startups to digital natives, from warungs to MSMEs; thereby promoting inclusive and sustainable growth for Indonesia. We are pleased to help Indonesia prepare for the opportunities of a digital future by continuing to innovate together, while building the capacity for inclusive economic growth and a future-ready industry.”

This partnership is a continuation of the Empower Indonesia Digital Economy initiative that Microsoft announced at the end of February 2021, where Microsoft confirmed its commitment to building the company's first data center region in Indonesia and upskiling more than 24 million Indonesians by the end of 2021. According to IDC¹ research, Microsoft's investment in Indonesia is expected to generate new revenue of up to US$6.3 billion from its local ecosystem of Indonesian customers and partners. Additionally, cloud-consuming businesses are expected to contribute 60,000 jobs to the local economy over the next four years.

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[1]IDC Info Snapshot, disponsori oleh Microsoft, The Microsoft Cloud Dividend Snapshot: Indonesia, Doc. # US47443521, Februari 2021