Indonesia is preparing to become the largest digital economy in Asia through the development of artificial intelligence (AI), digital infrastructure investment, and national AI policy strengthening.

Deputy Minister of Communication and Digital Affairs Nezar Patria said during the forum, Financial Markets at the Crossroads: The Impact of AI and Geopolitical Risk in South Jakarta (21/05).

He said Indonesia’s digital economy is projected to exceed US$100 billion in GDP by 2026 and could reach between US$220 billion and US$360 billion by 2030.

“Indonesia’s digital economy is projected to surpass US$100 billion in GDP by 2026 and potentially reach between US$220 billion and US$360 billion by 2030, positioning Indonesia as the largest digital economy in Asia,” Nezar said.

Government Finalizes National AI Roadmap and Ethics Regulation

The Ministry of Communication and Digital Affairs stated that it is acting as a facilitator, accelerator, and protector within Indonesia’s AI ecosystem. According to Nezar, the ministry has prepared three main AI policy pillars.

The first pillar focuses on regulations that balance innovation and protection. The government is currently finalizing a national AI roadmap and a presidential regulation on AI ethics.

“The principle is simple yet firm. AI platforms must uphold transparency, accountability, and security while remaining aligned with Indonesian cultural values,” he said.

Indonesia Expands AI Infrastructure and Data Centers

The second pillar focuses on building world-class digital infrastructure through cooperation with technology companies and investment expansion.

Indonesia currently has 185 data centers with a total capacity of 274 megawatts (MW). The government targets the capacity to exceed 2,000 MW by 2029.

Microsoft has committed US$1.7 billion to build cloud infrastructure in Indonesia. Meanwhile, Nvidia and Amazon have also reaffirmed their investment commitments in Indonesia.

“Investment in AI infrastructure must continue to expand,” Nezar said.

Indonesia Faces Digital Talent Shortage

The third pillar focuses on inclusive digital talent development. Nezar said Indonesia currently faces a shortage of around 3 million digital talents.

He emphasized that digital infrastructure development must be supported by capable human resources.

“Infrastructure of world-class quality will not mean much without capable human resources. Indonesia is currently facing a digital talent gap of around 3 million people, an urgency that cannot be ignored,” he stated.

PHOTO: MINISTRY OF COMMUNICATION AND DIGITAL AFFAIRS

This article was created with AI assistance.

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