US tech giant Microsoft on Tuesday announced that it entered into a strategic partnership with Indonesian e-commerce unicorn Bukalapak “to reshape how e-commerce is conducted in Southeast Asia’s largest economy.” Bukalapak will adopt Microsoft Azure as its preferred cloud platform and Microsoft will make a strategic investment, as much as USD 100 million, according to Bloomberg. A Bukalapak spokesperson declined to further comment.
“This partnership signals a deep collaboration with Microsoft on an array of technology projects that will transform commerce solutions in Indonesia,” Bukalapak CEO Rachmat Kaimuddin said in an official statement.
Bukalapak and Microsoft will collaborate on a number of initiatives. The e-commerce firm will leverage Microsoft’s expertise in building a resilient cloud infrastructure to support Bukalapak’s services for more than 12 million micro, small, and medium enterprises, and 100 million customers. Microsoft will also provide digital skills training for Bukalapak employees and their merchants.
The deal further underlines Microsoft’s interest in Southeast Asia’s biggest economy. In February, Microsoft CEO Satya Nadella met with Indonesian President Joko Widodo to discuss plans to open data centers in the country. Microsoft will be the fourth giant tech company to build data centers in Indonesia after Google, Alibaba, and Amazon.
Indonesia has also become a target for other American tech companies. Back in June, Facebook and PayPal made an investment in super app Gojek, while Bukalapak’s competitor Tokopedia is reportedly close to receiving additional capital from Google and Temasek that could reach about USD 350 million.