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Deputy Minister Nezar: Indonesia Has the Opportunity for a Strategic Position in the Global AI Supply Chain

1 hour ago | Artificial Intelligence


Jakarta, INTI - Indonesia is considered to have a significant opportunity to play a strategic role in the global artificial intelligence (AI) supply chain, given its strong mineral and energy resources and demographic dividend.

Deputy Minister of Communication and Digital Affairs (Kemenkomdigi) Nezar Patria stated that global changes in the semiconductor and AI industries provide an opportunity for Indonesia to establish a stronger position in this ecosystem.

"The economic war of this century will not be determined by who controls oil fields, but by who controls chip manufacturing. So what is Indonesia’s position in this?" he asked during a discussion in Central Jakarta on Wednesday, May 6.

According to him, semiconductors are now a key element in various strategic sectors, from artificial intelligence to defense systems.

"Semiconductors are no longer just electronic components, but have become a kind of sovereign infrastructure today. And they fuel every trained AI model, every data center built, and every defense system operated. We could say that semiconductors are the new oil now," he emphasized.

Indonesia’s Resources and Potential

Nezar assessed that Indonesia has strong capital to enter the supply chain, particularly in terms of natural resources. Indonesia has tin resources, which are a key ingredient in chip manufacturing, as well as large reserves of silica sand. He also emphasized the importance of Indonesia having control of semi-finished products.

In the national energy sector, Nezar explained that Indonesia has energy surplus and renewable energy. Furthermore, Indonesia has a large productive-age population, as it has the largest population in Southeast Asia of 285 million people, with an average age of 30 years.

To boost this potential, Kemenkomdigi has developed an AI Talent Factory program involving various universities.

"We're trying to gather the best talents from universities, then we're providing basic to advanced programs on how to provide AI solutions," he explained.

Conclusion 

Deputy Minister of Communication and Digital Affairs, Nezar Patria, believes Indonesia has a significant opportunity to become a strategic player in the global AI supply chain. Indonesia is considered to possess strong capital through tin resources, silica sand, a surplus of electrical energy, and a large productive-age population. The government is also encouraging the development of AI talent through the AI ​​Talent Factory program, ensuring that Indonesia becomes more than just a supplier of raw materials and a key player in the global AI industry value chain.

Read more: Anthropic Pays US$200 Billion to Google for Access to Its Chips and Cloud Services

 

Indonesia Technology & Innovation
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