Jakarta, INTI - Indonesia needs to accelerate the development of its artificial intelligence (AI) ecosystem to avoid becoming merely a consumer or market for global technology. Strengthening the national AI ecosystem should cover the entire industry value chain, from infrastructure and computing capacity to technology development and human resources.
Galih Dimuntur Kartasasmita, a member of the AI Working Committee (Panja AI) under the Inter-Parliamentary Cooperation Body (BKSAP) of the Indonesian House of Representatives (DPR RI), has proposed expanding parliamentary discussions on AI through the establishment of a special committee involving multiple DPR RI commissions.
Galih made the statement after attending a meeting between the BKSAP AI Working Committee and industry representatives at the NeutraDC Nxera office in Batam, Riau Islands, on Wednesday, August 19, 2026.
He said Indonesia has significant advantages for developing its AI industry, including its large population and rapidly growing digital technology adoption. However, these advantages need to be accompanied by the ability to develop an independent technology ecosystem.
“We should not settle for being merely a database player or a user. We need to build the entire ecosystem, from upstream to downstream,” Galih said.
According to the Golkar Party legislator, the AI industry extends far beyond consumer applications. Behind AI technology lies a broad industrial value chain encompassing chip manufacturing, data centers, energy and water resources, supporting infrastructure, digital talent, and software development.
Mastering this entire value chain could create new economic opportunities for Indonesia. Local companies, therefore, need support to grow in both AI hardware and software development.
Batam Seen as a Key Digital Infrastructure Hub
Galih identified Batam as an area with strong potential for the development of Indonesia’s digital infrastructure. The presence of hyperscale data center facilities in the region demonstrates its potential to support growing demand for AI computing and cloud services.
However, he emphasized that Indonesia’s AI ecosystem cannot rely on a single region. Data centers should be developed across several strategic locations supported by adequate energy, water, connectivity, and other infrastructure.
“These facilities cannot be concentrated in just one location. We could have one in the center, one in the east, and one in the west. They need to be large-scale, with sufficient water resources,” he said.
Galih added that AI is now expanding into nearly every sector of society. As a result, AI is no longer solely a digital technology issue, but is increasingly connected to energy, industry, education, healthcare, the economy, employment, and social and cultural change.
Calls for Cross-Commission AI Discussions
Given the broad impact of AI, Galih believes discussions within the DPR RI should take a cross-sector approach. He said the BKSAP AI Working Committee could serve as an entry point for more comprehensive parliamentary discussions on the issue.
As a member of Commission XI of the DPR RI, Galih said BKSAP holds a strategic position because it monitors global developments, including advances in AI that are increasingly affecting various aspects of national life.
“BKSAP can serve as a driving force to engage DPR RI commissions and encourage them to start addressing this issue seriously,” Galih said.
He also called for AI discussions to go beyond the BKSAP Working Committee. Given the cross-sectoral nature of AI, establishing a special committee involving representatives from multiple commissions could provide a stronger framework for addressing the issue.
“In my personal view, a special committee should be established involving experts and individuals who truly understand and are sensitive to AI-related issues because this is a cross-commission matter,” said the legislator representing West Java IX.
Galih also stressed the growing urgency of AI regulation as the technology continues to evolve rapidly. Regulations, he said, should protect national interests without restricting innovation.
AI governance should aim to create a healthy ecosystem while providing clarity on the principles and boundaries governing the use of the technology.
“AI is an expensive ecosystem and industry, but it will certainly pay off. We cannot escape AI. If we can master this technology, at least in Southeast Asia, we have the potential to become a major player,” Galih concluded.
Conclusion
Indonesia has a significant opportunity to become a major AI player in Southeast Asia, but achieving this requires more than simply adopting AI applications. The country needs to build a strong end-to-end AI ecosystem, covering data centers, computing infrastructure, energy and water resources, chip manufacturing, software, and skilled digital talent.
At the same time, stronger cross-sector collaboration and comprehensive AI regulation are needed to ensure that technological growth supports national interests without limiting innovation. With the right infrastructure, talent, industry support, and regulatory framework, Indonesia can move from being an AI consumer toward becoming a competitive regional AI ecosystem and technology player.
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