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Tencent to Invest $500 Million in Cloud Infrastructure in Indonesia

Tencent Holdings 700 -1.34%decrease; red down pointing triangle plans to set up its third internet data center in Indonesia, as the Chinese tech giant furthers its partnership with GoTo Group and Alibaba Group 9988 -0.33%decrease; red down pointing triangle to develop cloud infrastructure and train local talent in the country.

Indonesian technology company GoTo unveiled the new agreements with Tencent and Alibaba on Sunday at the Indonesia-China Business Forum in Beijing. This comes on the back of Indonesian President Prabowo Subianto’s state visit to China over the weekend, where he said that more than $10 billion worth of investment agreements between the Indonesian Chamber of Commerce and Industry and top Chinese companies would be signed.

As part of efforts to strengthen cloud infrastructure in Southeast Asia’s largest economy, Tencent’s cloud unit plans to build its third internet data center. Tencent has committed to around $500 million in new investments in Indonesia by 2030, according to the joint statement on Sunday. Through the investment, Tencent aims to provide local companies with cloud and AI solutions to drive adoption.

Alibaba Cloud, which currently has three data centers in Indonesia, plans to double the number of individuals it trains in cloud computing and AI, and will establish a skills center at Universitas Indonesia.

The planned investments by Tencent Cloud and Alibaba Cloud are built around the two companies’ expansive cloud services contracts with GoTo, according to the statement.

GoTo seeks to leverage the Chinese companies’ expertise in data analytics, AI and cybersecurity, to boost its digital infrastructure to meet users’ needs, the company said.

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