Mr Taylor's parents live in Dunedin and he attended Otago Boys' High School. He has a BA (Hons) in history and an LLB from Otago University, gained in 1981 and 1984.
He succeeds Phillip Gibson, who also attended Otago Boys' and has a BA (Hons) in Latin from Otago. Mr Gibson took up the Jakarta post in 2006.
His predecessor, Chris Elder, was raised in Otago and gained a BA and MA from Otago University in 1968 and 1969.
"I'm very excited about it," Mr Taylor said of his new job yesterday. It was "nice" being the latest former Otago person to take up the post.
There was a "very strong" grouping of people from Dunedin or elsewhere in Otago-Southland as well as other Otago University graduates in the Ministry of Foreign Affairs and Trade. They were proud of their origins.
Mr Taylor, who has been serving as director of the ministry's Americas division, said Indonesia's population was 230 million and the country was "mega diverse", with more than 200 cultures and languages. It was the fourth most populous country on Earth, and the most populous Islamic nation.
More than 20 million Indonesians were middle class, by New Zealand standards. They clearly represented significant export, overseas education and tourism opportunities.
Indonesia's future was looking rosy and "there's got to be opportunities", including in areas other than New Zealand dairy and beef exports.
There was scope for Otago University and the Otago Polytechnic to attract more full-cost recovery students from Indonesia and Otago could lure more Indonesian tourists.
He was keen to act as a "matchmaker" to help Otago and other New Zealand businesses develop productive links with Indonesia.