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Indonesia's Strategy Amid ChatGPT and DeepSeek AI Market Rivalry

02 Feb, 2025
Indonesia's Strategy Amid ChatGPT and DeepSeek AI Market Rivalry

The escalating trade tensions between the United States, its European allies, and China have extended into the realm of artificial intelligence (AI), with China's DeepSeek emerging as a notable competitor to OpenAI's ChatGPT. In this shifting technological landscape, experts emphasize that Indonesia must proactively define its stance to avoid merely serving as a market for foreign AI technologies without securing strategic advantages.

Heru Sutadi, Executive Director of the Information and Communication Technology (ICT) Institute, observes that while DeepSeek is still in its nascent stages compared to the widely adopted ChatGPT, its presence already poses a challenge to established AI players. He states, "DeepSeek, being new, will need time to truly rival ChatGPT, which is widely used by the public and industry. However, its emergence is a threat to other major players."

Historically, Indonesia has predominantly been a consumer rather than a producer in the AI sector. With certain Chinese AI products exiting various global markets due to geopolitical tensions, Indonesia now has a significant opportunity to negotiate strategic benefits in adopting new technologies. Heru emphasizes, "Indonesia must recognize its position as a major market and negotiate better with these key players. We should consider which offers more in terms of investment, job creation, and technology transfer that can be adopted locally."

To move beyond a consumer role in the AI industry, Heru advocates for government policies that ensure the adoption of foreign AI technologies also bolsters the national economy. Without regulations governing technology transfer and data protection, Indonesia risks deepening its dependence on other nations. He cautions, "If there are no regulations that govern technology transfer and data protection, Indonesia will become increasingly dependent on other countries."

As AI development accelerates, it's crucial for Indonesia to implement policies that not only position the country as a consumer but also secure strategic benefits, such as enhancing domestic industry capabilities and facilitating technology transfer. This approach aligns with Indonesia's broader goals of economic growth and technological self-reliance.

In recent developments, the Indonesian government is preparing to draft more detailed and comprehensive regulations on the use and control of artificial intelligence. Deputy Minister of Communication and Digital Affairs, Nezar Patria, has initiated discussions to involve various stakeholders in this regulatory process.

Furthermore, Indonesia's National Strategy on AI identifies key challenges in adoption and implementation, including human capital development, digitization and infrastructure, and fostering collaborations between universities and industries. Addressing these challenges is essential for Indonesia to transition from being a mere consumer to becoming a significant contributor in the AI sector.

By proactively engaging in strategic negotiations and establishing robust policies, Indonesia can ensure that the integration of AI technologies contributes to national economic growth, technological advancement, and reduced dependency on foreign entities.

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