Indonesia is seeking a stronger strategic role in the global artificial intelligence (AI) supply chain, according to statements from Deputy Minister of Communication and Digital Affairs Nezar Patria during a policy discussion and a leadership forum held in Jakarta (6/5).

He delivered these remarks in a Focus Group Discussion titled “Strategic Opportunities for Indonesia in the Global AI Supply Chain” and later in the IDN Times Leadership Forum.

Semiconductors Seen as Core Power in AI Era

Nezar said global economic power is increasingly defined by control over semiconductor manufacturing rather than traditional energy resources.

He stressed that semiconductors have become essential infrastructure supporting AI systems, data centers, and defense technologies.

“Semiconductors are no longer just electronic components, but infrastructure of sovereignty,” he stated, adding that they function as the “fuel” for AI models and digital systems.

He also noted that competition among global powers is intensifying in the semiconductor sector, marking a shift from the oil-driven economy of the past.

Indonesia’s Mineral and Energy Resources as Strategic Assets

Indonesia is viewed as having strong potential due to its natural resources, particularly minerals required in chip production.

Nezar highlighted that Indonesia is a major global producer of tin, which is used in semiconductor manufacturing, and also has large reserves of silica sand, a key material for silicon production.

He also mentioned additional mineral resources such as nickel, cobalt, and gold, which are important in semiconductor-related industries.

Beyond minerals, Indonesia’s energy capacity was also highlighted, with surplus electricity production and growing renewable energy potential seen as key advantages for supporting AI infrastructure such as data centers.

Call for Value-Added Industrial Strategy

Despite its resource advantages, Nezar emphasized that Indonesia should not remain only a raw material exporter.

He stressed the need to strengthen downstream processing so that materials are exported in semi-processed form rather than raw.

“Do not export raw materials directly. They should be semi-finished, and we must control that process,” he said.

He added that Indonesia must strengthen its position within the global supply chain rather than remain outside it.

Collaboration-Based AI Development Strategy

In a separate discussion at the IDN Times Leadership Forum in Jakarta (06/05/2026), Nezar reaffirmed Indonesia’s commitment to a collaborative approach in developing its AI ecosystem.

He stated that Indonesia is not pursuing strict state control over technology but instead encouraging cooperation between government, industry, academia, and other stakeholders.

“We are always open to collaboration to build an inclusive AI ecosystem,” he said.

He also noted that Indonesia is currently not fully integrated into the global AI supply chain, citing observations from a semiconductor assembly facility in Batam where no locally produced components were involved.

Human Capital Development Through AI Talent Programs

To strengthen competitiveness, the government is focusing on developing digital talent through initiatives such as the AI Talent Factory.

The program involves universities and research institutions to train and develop skills ranging from basic to advanced AI applications.

Nezar said Indonesia’s large working-age population, with around 285 million people and an average age of 30, represents a significant advantage in building a digital workforce for the future.

PHOTO: MINISTRY OF COMMUNICATION AND DIGITAL AFFAIRS

This article was created with AI assistance.

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