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Indonesia plans to launch its first national artificial intelligence strategy by next month to attract foreign investment and position itself in the global race for AI and chip development. It marks an important change in Southeast Asia's largest economy as it seeks to compete with neighbors like Malaysia, which has already closed billions in AI infrastructure deals.
By following the Indonesia AI roadmap, the government aims to position the country as a digital innovation leader in the region. According to Deputy Minister of Communications and Digital, Nezar Patria, the roadmap will provide a comprehensive framework for AI growth in Indonesia, a nation of over 270 million people. This will be the country’s most detailed AI policy initiative since the release of an ethics guideline in 2023.
The Indonesia AI roadmap outlines the nation's long-term strategy for integrating artificial intelligence into key sectors. “The roadmap will help AI developers navigate the Indonesian market by outlining infrastructure availability and computational clusters,” Nezar told Reuters in an interview. The strategy will also include recommendations for the application of AI in various sectors of the economy, such as healthcare, agriculture, and public services.
Crucially, the roadmap is expected to serve as a blueprint for building a domestic AI ecosystem that supports innovation, attracts private sector involvement, and lays the groundwork for a skilled digital workforce. “This will give investors a clearer picture of AI’s potential in Indonesia,” Nezar said. “We’re hopeful this will encourage them to invest capital here.”
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As the global demand for AI accelerates, Indonesia is also marketing its critical mineral reserves, which are essential for semiconductor and AI hardware production. The government has pitched joint investment opportunities to international partners, including the United States, to secure a larger role in the global semiconductor supply chain.
As a tech-forward region, Southeast Asia is witnessing rapid growth in AI-powered startups and digital infrastructure. Building a robust AI Infrastructure is crucial for enabling large-scale applications in healthcare, education, and public services.
Increasing foreign investment in AI is helping to accelerate technology adoption and skill development across Indonesia. Recent AI-related investments in Indonesia include a $1.7 billion commitment from Microsoft to expand local cloud and AI infrastructure, as well as chipmaker Nvidia’s collaboration with GoTo, Gojek, and Tokopedia to launch a large language model service.
Despite all this, experts say Indonesia still has a long way to go before it is globally recognized as an AI developer. Damar Juniarto, an analyst from the research company PIKAT Demokrasi, identifies limitations in infrastructure, a shortage of people in the AI labor market, and other constraints.
Nezar noted the risks of exposing Indonesian citizens to data privacy, fake news, and intellectual property issues, but did not elaborate on how it would ensure the necessary measures were taken to address them.
A well-defined AI policy in Indonesia is essential for ensuring ethical use, data privacy, and regulatory compliance. Nevertheless, Indonesia's announcement of a roadmap to be delivered within a month shows that it aims to position itself as a competitive market for AI innovation and an attractive country for global tech investment.
