Indonesia is considering establishing a “sovereign AI fund” managed by Danantara Indonesia, the country’s sovereign wealth fund with over $900 billion in assets, to accelerate its artificial intelligence development and position itself as a regional AI hub. This plan, detailed in a 179-page government white paper seen by Reuters, emphasizes public-private partnerships and fiscal incentives to boost domestic AI investment.
The roadmap acknowledges key challenges such as talent shortages, limited research funding, and uneven internet access beyond major cities. Regional AI market growth projections, including those from IndexBox, align with Indonesia’s ambitions.
Global technology companies like Nvidia and Microsoft have already expressed interest in Indonesia’s AI initiatives. A Boston Consulting Group report estimates AI could add 2.3% to 3.1% to ASEAN’s GDP by 2027, with Indonesia expected to see the highest absolute impact.
