New AI strategy aims to attract global capital to Indonesia
Microsoft ($1.7 billion) and Nvidia ($200 million) have committed to significant investments in AI centers and cloud infrastructure.
Indonesia is moving to cement its position in the global AI and semiconductor landscape by releasing its first comprehensive national AI strategy in August 2025.
Deputy Minister Nezar Patria says the roadmap aims to clarify the country’s AI market potential, particularly in sectors like health and agriculture, and provide guidance on infrastructure, regulation, and investment pathways.
Already, global tech firms are demonstrating confidence in the country’s potential. Microsoft has pledged $1.7 billion to expand cloud and AI capabilities, while Nvidia partnered on a $200 million AI centre project. These investments align with Jakarta’s efforts to build skill pipelines and computational capacity.
In parallel, Indonesia is pitching into critical minerals extraction to strengthen its semiconductor and AI hardware supply chains, and has invited foreign partners, including from the United States, to invest. These initiatives aim to align resource security with its AI ambitions.
However, analysts caution that Indonesia must still address significant gaps: limited AI-ready infrastructure, a shortfall in skilled tech talent, and governance concerns such as data privacy and IP protection.
The new AI roadmap will bridge these deficits and streamline regulation without stifling innovation.
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