Indonesia aims to accelerate its AI-led growth with a new National Artificial Intelligence Roadmap White Paper that envisions a sovereign AI fund to be managed by Danantara Indonesia. The proposal, released by the Ministry of Communication and Digital Applications (Komdigi), targets establishing a public-private partnership framework for the fund during 2027–2029, with the fund’s size still to be determined. Danantara Indonesia, which already oversees assets valued at more than US$900 billion, is slated to be the main operator of the initiative.
Key components of the plan include laying a clear legal basis for the Sovereign AI Fund, creating a blended financing model to support strategic AI projects, and expanding fiscal incentives to attract domestic AI investment. The government emphasises that the roadmap remains open for public input before finalization.
Beyond the fund, the white paper maps Indonesia’s AI readiness and sets policy strategies through 2030, while highlighting several challenges to overcome. Major hurdles include a shortage of skilled AI talent, limited funding for research, connectivity gaps in rural areas, and risks related to disinformation and data security. Notably, Huawei and PT GoTo Gojek Tokopedia (GOTO) contributed to the report’s preparation, underscoring collaboration across industry players.
In the broader regional context, a forecast cited by the government suggests AI adoption could lift ASEAN GDP by about 2.3 percent to 3.1 percent by 2027, with Indonesia expected to experience the largest absolute gain.
What this means for Indonesia
– Strategic ambition: The Sovereign AI Fund and PPP approach reflect a bold step to position Indonesia as a regional AI hub, attracting investment, talent, and partnerships.
– Governance and risk management: A formal legal framework and blended financing model are intended to provide clarity and de-risk AI initiatives, while funding incentives aim to accelerate domestic innovation.
– Talent and infrastructure: Addressing talent gaps and rural connectivity will be crucial to translating policy into tangible AI deployments across sectors.
– Collaboration: Involvement of major tech players signals an openness to public-private collaborations that could accelerate pilot projects and scale nationwide.
Summary
Indonesia is charting a comprehensive pathway to harness AI for growth, combining a sovereign fund with a PPP model, a clear legal framework, and targeted incentives. While the roadmap faces challenges like talent shortages, funding, and cybersecurity risks, the proposal positions the country to become a regional AI leader with potential significant economic benefits for 2027–2029 and beyond.
Additional notes
– Public feedback will be welcome as part of finalizing the roadmap, indicating an ongoing process rather than a fixed plan.
– The emphasis on governance, incentives, and strategic projects suggests a focus on practical, scalable AI applications that align with national development goals.