Authorities in Indonesia have proposed the creation of a “sovereign AI fund” to support the nation’s goal of becoming a regional hub for artificial intelligence, according to a government white paper. The fund, expected between 2027 and 2029, would be managed primarily by Danantara Indonesia, the country’s sovereign wealth fund with assets exceeding $900 billion, and financed through a public-private model. The proposal is part of Indonesia’s first national AI roadmap, aimed at attracting foreign investment and advancing the country’s position in the global AI and chip-making race.
The 179-page strategy document recommends increased fiscal incentives for local AI investors, though no funding target was specified. It maps Indonesia’s computational readiness and outlines AI policy recommendations through 2030, noting that the country remains in the early stages of AI adoption. Contributions to the report came from major industry players, including Chinese tech giant Huawei and local technology leader GoTo.
Analysts see significant growth potential, with a Boston Consulting Group report projecting that ASEAN countries could see GDP boosts of up to 3.1% from AI by 2027, with Indonesia expected to record the highest absolute gains. However, the roadmap also flags hurdles such as insufficient research funding, a shortage of skilled talent, patchy internet access beyond major cities, and risks including misinformation and data breaches.
Global technology companies like Nvidia and Microsoft have already shown interest in Indonesia’s AI push, while neighbouring Malaysia has attracted billions in similar investments. The communications and digital ministry has said the strategy remains open to public feedback before a final draft is released.