Jakarta, INTI – Indonesia's internet speed is the second lowest in ASEAN, according to Speedtest Global Index data. This condition presents a significant challenge for the development of artificial intelligence (AI) technology and digital transformation in the country.
Infrastructure Challenges for AI
Director of Digital Infrastructure Strategy and Policy at the Ministry of Communication and Digital (Komdigi), Denny Setiawan, emphasized the importance of reliable and fast connectivity to support Indonesia’s ambition to become a leader in AI. “Indonesia wants to be a leader in AI. However, a key requirement is that the internet must not be slow,” he stated at the Tech and Telco Summit 2025 on Friday, February 21, 2025. According to Speedtest Global Index data from October 2024, Indonesia's median download speed is only 29.34 Mbps. This places Indonesia at 87th out of 111 countries globally.
The President Director of PT Solusi Sinergi Digital Tbk (SURGE), Yune Marketatmo, added that limited connectivity could hinder the utilization of digital technology, including AI and the Internet of Things (IoT). He explained that a minimum internet speed of 100 Mbps is required to maximize IoT applications.
Data Center Infrastructure Needs for AI
DCI Indonesia CEO Otto Toto Sugiri explained that AI data processing consists of three main stages:
- Training: The AI model learns from large datasets to recognize patterns and essential features. This process requires immense computing power.
- Inference: The trained AI model is used to process new data and make predictions.
- Fine-Tuning: The pre-trained AI model is adjusted using specific datasets to enhance its performance.
According to Toto, the infrastructure required for AI training is substantial and is primarily developed in countries like the United States and China. “Indonesia currently plays a more significant role in the inference and fine-tuning stages, where pre-developed AI models are applied in industries,” he stated during the IDE Katadata: Data for Growth event at the session ‘Data Centers to Support 8% Economic Growth’ in Jakarta on Tuesday, February 18, 2025.
He also estimated that the demand for data centers to support AI could be six times higher than the current cloud computing needs in Indonesia. With a population of 270 million, Indonesia is projected to require approximately 2,700 Megawatts (MW) to meet domestic needs. “If AI continues to grow, energy requirements could increase sixfold,” he added.
Strategic Steps to Improve Internet Connectivity
Currently, broadband internet penetration in Indonesia remains low, with stagnant speeds. Yune Marketatmo noted that broadband penetration in society is below 15%. “Our internet speed remains low. Among ASEAN countries, our ranking has remained stagnant,” he said at the CNBC Indonesia Tech and Telco Summit 2025.
To enhance connectivity, SURGE is working to expand broadband access in Indonesia. Improved internet access is expected to accelerate economic growth, potentially reaching the 8% growth target. Broader internet access also supports digital financial services, online education, and remote healthcare services.
Meanwhile, the government, through Komdigi, aims to build internet infrastructure down to the district level to ensure citizens can enjoy fast connections at affordable prices. “If Indonesia wants to lead in AI, internet speed must be improved,” emphasized Denny Setiawan.
Conclusion
Low internet speed remains a major challenge for AI development in Indonesia. Strong infrastructure, including broadband networks and data centers, is essential to support a more advanced AI ecosystem. With strategic efforts from both the government and the private sector, Indonesia is expected to accelerate its digital transformation and optimize economic opportunities driven by AI in the future.
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