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Technology

Biden to Restrict AI Chip Exports: How Will It Affect Indonesia?

13 Jan, 2025
Biden to Restrict AI Chip Exports: How Will It Affect Indonesia?

President Joe Biden’s administration has announced a new wave of restrictions on the export of artificial intelligence (AI) chips, which will directly impact several countries, including Indonesia. These restrictions, set to take effect soon, aim to limit access to advanced chips from companies like Nvidia and Advanced Micro Devices (AMD) in an effort to safeguard national security and prevent the misuse of AI technologies, particularly in military applications.

The US government’s decision comes as part of its broader strategy to control the development of advanced AI technologies. This policy is seen as a strategic move to ensure that only nations aligned with US interests have access to cutting-edge AI infrastructure. Indonesia, along with other Southeast Asian nations, has been placed in the second category of countries, meaning it will face restrictions on the number of data center chips it can access. This classification places limits on the computing power that Indonesian companies can utilize for data processing, which could slow the country’s growing AI and data center industries.

Heru Sutadi, Executive Director of the ICT Institute, suggested that the move is a part of the US’s broader trade strategy. While he acknowledges that the impact on Indonesia may be minimal, especially compared to the effects of the US-China trade war, he urged the Indonesian government to stay vigilant. Sutadi believes that Indonesia should continue monitoring these developments and be prepared to take countermeasures if necessary.

Despite the limitations, experts like Ian Yosef M. Edward, Head of the Telecommunications Policy and Regulation Study Center at ITB, argue that the new restrictions could benefit Indonesia in the long run. He pointed out that many Southeast Asian countries, including Indonesia, maintain good relations with the US. This could offer Indonesia a unique opportunity to grow its data center sector, especially those focused on AI and high-performance computing, which are becoming increasingly vital in the digital age.

This geopolitical landscape is heavily influenced by two significant economic groups: BRIC (Brazil, Russia, India, and China) and the OECD (Organisation for Economic Co-operation and Development). While BRIC nations are focused on enhancing their economic influence globally, the OECD advocates for free trade and the promotion of sustainable economic growth. Indonesia, as a member of BRIC, could leverage this global dynamic to secure alternative sources for AI chips and other critical technologies.

The US’s AI chip export restrictions are designed to prevent these technologies from falling into the hands of adversarial states like China, Russia, Iran, and Myanmar. Countries in the first category, including US allies like Japan, Australia, and the European Union, will have no restrictions on accessing AI chips, while countries in the third category face a complete ban on these imports.



SOURCE: BISNIS | PHOTO: AFP

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