Jakarta, INTI - Indonesia is projected to become the largest digital economy in Asia in the next few years due to the rapid growth of artificial intelligence (AI), investment in global digital infrastructure, and strengthening of national AI policies.
Deputy Minister of Communication and Digital Affairs, Nezar Patria, emphasized that Indonesia is preparing to become one of Asia's new AI powers by accelerating digital investment, building data centers, and developing national AI ethics regulations.
Nezar expressed that the national digital economy projections in the next few years could position Indonesia as the largest digital economy in Asia.
"Indonesia's digital economy is projected to exceed US$100 billion in GDP by 2026 and has the potential to reach between US$220 billion and US$360 billion by 2030, positioning Indonesia as the largest digital economy in Asia," he explained at the Financial Markets at the Crossroads: The Impact of AI and Geopolitical Risk discussion forum in Jakarta, Thursday, May 21.
Three Pillars of AI Policy
As the ministry responsible for national digital policy, the Ministry of Communication and Digital Affairs (Kemkomdigi) acts not only as a facilitator but also as an accelerator and protector of Indonesia's AI ecosystem.
In this regard, Kemkomdigi has three policy pillars related to AI.
The first pillar is regulation that balances innovation and protection, requiring AI platforms to uphold transparency, accountability, and security, while ensuring that their values align with Indonesian cultural values.
"The government is currently finalizing two important policy instruments: a national AI roadmap and a presidential regulation on AI ethics. The principle is simple but firm. AI platforms must uphold transparency, accountability, and security while remaining aligned with Indonesian cultural values," said Nezar.
The second pillar is world-class digital infrastructure.
In this regard, Indonesia is collaborating with technology companies on investment and development.
"Investment in AI infrastructure must continue to expand. Indonesia currently has 185 data centers with a total capacity of 274 MW, and is targeted to exceed 2,000 MW by 2029. Microsoft has committed US$1.7 billion to build cloud infrastructure in Indonesia, while Nvidia and Amazon have also reaffirmed their investment commitments in our country," he added.
The third pillar is about inclusive digital talent development. Nezar said that world-class infrastructure is incomplete without qualified human resources. Therefore, digital talent development is an important matter.
"World-class infrastructure will be worthless without qualified human resources. Indonesia currently faces a digital talent gap of around 3 million people, an urgency that cannot be ignored," he said.
Conclusion
Indonesia is projected to become Asia's largest digital economy in the next few years, driven by the growth of AI, investment in digital infrastructure, and strengthening national regulations. Deputy Minister of Kemkomdigi, Nezar Patria, stated that the value of Indonesia's digital economy is estimated to exceed US$100 billion in 2026 and has the potential to reach US$220–360 billion by 2030. The government has prepared three pillars of AI-related policy, including regulations that balance innovation and protection from AI platforms, the development of digital infrastructure and data centers with investment support from global companies, and the development of digital talent.
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