Russia’s internet giant Yandex is set to invest in Indonesia’s growing artificial intelligence (AI) ecosystem, marking its first major foray into the Southeast Asian market. This development was announced by Indonesia’s Communications and Digital Minister Meutya Hafid following her meeting with Alexander Popovskiy, Yandex’s international search division head.
Expanding Yandex’s Search Platform in Indonesia
According to Hafid, Yandex’s primary goal in Indonesia is to expand its search engine platform, aiming to offer a localized and AI-enhanced experience for Indonesian users. While specific investment details—including the project size or timelines—have not yet been disclosed, the ministry’s announcement signals a growing interest from Yandex in Indonesia’s fast-developing digital landscape.
Yandex, often referred to as “Russia’s Google,” is renowned for its work in artificial intelligence and for developing large language models. With strong results reported for the third quarter of 2024—including a 36% year-over-year revenue increase to Rbs276.8 billion ($2.76 billion)—Yandex has shown resilience and continued growth in its core markets. The company is projecting 38%-40% growth in group revenue for 2024, with adjusted EBITDA expected to reach Rbs170-Rbs175 billion.
Indonesia’s Appeal to Global Tech Investors
Yandex’s move into Indonesia adds to a wave of recent investments by global tech companies. In 2024, Microsoft committed $1.7 billion to expanding cloud and AI infrastructure in Indonesia, with plans to build data centers. AI chip maker NVIDIA and Indonesian telecom provider PT Indosat Ooredoo Hutchison also announced a $200 million AI center in Central Java.
This influx of investment underscores Indonesia’s strategic position as a digital and AI innovation hub in Southeast Asia, drawing interest from both Western and Asian tech firms aiming to capitalize on the region’s digital transformation.
Outlook for Yandex’s Expansion
As Yandex steps into the Indonesian market, the company may leverage its expertise in AI-driven search and language processing to tailor its services to the local population. While no timeline has been set for the launch, Yandex’s entry is expected to increase competition and provide more digital choices for Indonesian users.
With AI and digital services expanding rapidly in Indonesia, Yandex’s investment could help shape the future of search and AI applications in one of Southeast Asia’s largest digital markets.