- Indonesia lags in regional AI investments.
- Infrastructure and talent gaps hinder progress.
- Government plans ecosystem improvements.
Lagging behind the AI race
Despite being Southeast Asia’s largest market, Indonesia trails its neighbors in attracting AI investments.
Tech giants have committed $51.5 billion to the region since 2023, but Indonesia’s share remains disproportionately small. Limited infrastructure, talent shortage, and regulatory gaps contribute to this disparity.
Chips ahoy! building a stronger AI ecosystem
Attracting AI chip manufacturers could jumpstart Indonesia’s AI ecosystem. Nvidia’s planned AI center in Surakarta, in partnership with Indosat Ooredoo Hutchison, sets a promising precedent. Such initiatives could foster local supply chains, reduce costs, and create innovation hubs.
Experts urge the government to develop AI talent domestically and streamline regulations. Microsoft’s commitment to skill 840,000 Indonesians in AI is a step forward.
The government plans to strengthen the AI-based tech supply chain and enhance local talent, aligning with global trends.
To read the original article: https://www.techinasia.com/indonesia-trails-ai-investment-southeast-asia
