Indonesia is considering the creation of a “sovereign AI fund” to boost its ambition of becoming a regional hub for artificial intelligence, according to a government white paper. The plan, part of the country’s first national AI roadmap, proposes the fund be managed mainly by the sovereign wealth fund Danantara Indonesia, which controls over USD 900 billion in assets. The fund, targeted for 2027-2029, would use a public-private financing model and offer increased fiscal incentives for local AI investors. This strategy follows Malaysia’s success in attracting billions from global tech firms for cloud and AI infrastructure.
The 179-page document outlines AI policy recommendations through 2030, assessing Indonesia’s readiness and addressing challenges such as talent shortages, low research funding, poor connectivity outside major cities, and risks of misinformation. Industry players like Huawei and GoTo contributed to the report. Analyst project ASEAN’s AI-driven GDP growth could reach up to 3.1% by 2027, with Indonesia seeing the largest absolute gain.
