Indonesia must not lag in global AI supply chain: Deputy Minister - ANTARA News Jawa Timur

Jakarta (ANTARA) - Indonesia must not be left behind in joining the global artificial intelligence (AI) industry supply chain, Deputy Minister of Communication and Digital Affairs Nezar Patria said in a statement received here on Friday.

According to Patria, competition in AI is no longer limited to application development, but has shifted to competition for control over semiconductors, data centers, and critical minerals that will determine a country's position in the global digital economy.

"Most importantly, we must not be late in joining the global supply chain, including AI," he added.

The development of startups has now undergone a paradigm shift, he pointed out, where many startups previously focused on valuation and aggressive growth, the emphasis has now shifted to building sustainable businesses with strong foundations.

Patria assessed India's experience shows government intervention through strengthening the startup ecosystem, "Make in India" policy, and developing the semiconductor industry is capable of driving the emergence of new AI based innovations.

"This time, AI has become the driving process for the growth of startups," he said.

Patria said Indonesia has strong potential to compete in the AI industry. High AI adoption, the growth of AI-based startups, and the emergence of initiatives to develop a national large language model (LLM) provide an important foundation for achieving AI sovereignty.

However, he explained Indonesia is still at the technology utilisation stage and therefore needs to strengthen its national capabilities through collaboration with various stakeholders.

"We are still at the usage level. We have not yet become AI developers," he said.

AI development requires support from digital infrastructure, particularly data centers, graphics processing units (GPUs), and the semiconductor industry, Patria pointed out.

Indonesia has reserves of critical minerals, such as nickel and silica sand, that need to be processed to generate greater added value.

By strengthening its position in the semiconductor industry, Indonesia is expected to gain stronger bargaining power in global technology competition.

Meanwhile, the government is also preparing an AI Road Map, which will be issued as a Presidential Regulation to serve as a reference for national AI development.

The regulation is being drafted using a risk-based approach to save room for innovation while ensuring that AI is developed and used responsibly.

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