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Indonesia and Switzerland Strengthen Sovereign AI Cooperation, Positioning Batam’s Nongsa Digital Park as an AI Hub

5 hours ago | Artificial Intelligence


Jakarta, INTI - Indonesia and Switzerland are strengthening their cooperation in artificial intelligence (AI) through a memorandum of understanding (MoU) signed between Nongsa Digital Park in Batam and Swiss technology company PHOENIQS AG. The partnership aims to develop sovereign AI infrastructure for the Indonesian and Southeast Asian markets.

The agreement was signed in Basel-Landschaft, Switzerland, on Thursday, October 29, 2026, focusing on data center development, high-performance computing, and data management systems that provide data owners with greater control over their information.

Indonesia’s Ambassador to Switzerland, Ngurah Swajaya, welcomed the partnership, saying it could strengthen Indonesia’s digital technological independence while creating opportunities for AI-driven industrial development.

“As Southeast Asia’s largest economy, with a population of 280 million, a young demographic, and high levels of digital connectivity, Indonesia is not merely a potential market but an ideal testing ground for large-scale, AI-driven digital technology innovation,” Ngurah said in a written statement issued by the Indonesian Embassy in Bern on Tuesday, November 3, 2026.

The collaboration also coincides with the 75th anniversary of diplomatic relations between Indonesia and Switzerland, which the two countries continue to expand through economic and technological partnerships.

Nongsa Digital Park in Batam to Become a Sovereign AI Hub

Under the partnership, Nongsa Digital Park will develop sovereign AI-based data center capabilities to serve the needs of businesses and industries.

The targeted sectors include banking, telecommunications, and smart manufacturing.

As a Special Economic Zone focused on the digital economy, Nongsa Digital Park offers international and regional connectivity, as well as an ecosystem for developing high-performance computing-based data center infrastructure.

Meanwhile, PHOENIQS AG will contribute its sovereign cloud and AI technologies, which have previously been implemented in collaboration with telecommunications and infrastructure partners in Switzerland and the Middle East.

The partnership aims to position Nongsa as one of Indonesia’s platforms for sovereign AI development.

The technology is designed to give data owners greater control over data storage, processing, and security, going beyond conventional data residency approaches that primarily focus on where information is physically stored.

The development will also leverage high-performance computing technologies to support the evolving needs of the digital industry.

Swiss Technology Gives Data Owners Greater Control

One of PHOENIQS AG’s key technological offerings is an independent cloud computing operating system designed to support sovereign data management.

The platform incorporates confidential computing technology, which aims to protect information while it is being processed.

It also uses an encryption mechanism with keys fully controlled by customers or data owners.

This approach is designed to give businesses greater authority over information stored and processed through AI services.

PHOENIQS AG also offers computing capabilities comparable to those of large-scale hyperscale cloud service providers.

Its pricing model is consumption-based, allowing customers to adjust costs according to their service requirements.

The technology development is also linked to the utilization of supercomputers and quantum technologies as part of broader efforts to strengthen computing capabilities.

Pilot Projects to Involve Banks and Companies in Batam and Singapore

The initial implementation of the partnership between Nongsa Digital Park and PHOENIQS AG will begin with pilot projects.

The projects are expected to involve several companies operating in the banking, telecommunications, and manufacturing sectors across Batam and Singapore.

The pilot phase will serve as an initial step toward implementing sovereign AI technologies in business operations.

Nongsa Digital Park will provide infrastructure and connectivity support, while PHOENIQS AG will contribute its cloud computing and AI technologies.

The MoU was signed by PHOENIQS AG Executive Chairman Thomas Taroni and Nongsa Digital Park Chief Business Officer Marco Bardelli. The signing ceremony was witnessed by Basel-Landschaft President Thomi Jourdan and Indonesian Ambassador to Switzerland Ngurah Swajaya.

The event took place in Basel-Landschaft, where PHOENIQS AG operates its AI supercomputing infrastructure.

Indonesia-Switzerland Partnership to Strengthen Digital Technology Independence

Ambassador Ngurah Swajaya said the partnership carries strategic significance amid global technological competition and evolving geopolitical dynamics.

According to him, the ability to independently develop digital technologies is becoming increasingly important for countries seeking to reduce their dependence on foreign technology providers.

“In an era of geopolitical competition, developing digital sovereignty and technological independence has become a priority for many countries seeking to reduce their dependence on external providers,” Ngurah said.

He also highlighted Switzerland’s strengths in precision technology and independent high-performance computing capabilities.

“PHOENIQS AG is one of the driving forces behind sovereign AI development in Europe, operating from a neutral country such as Switzerland. Meanwhile, Nongsa Digital Park is also a strategic digital technology development hub, located close to Southeast Asia’s financial and industrial centers,” he added.

Batam’s proximity to Singapore is considered another strategic advantage in developing digital technology services for regional markets.

Technology Partnership Supports Indonesia’s Golden Vision 2045

The sovereign AI development partnership builds on several economic and technological collaborations previously established between Indonesia and Switzerland.

In June 2026, the two countries signed an agreement on mineral and metal downstream development during a meeting between Indonesia’s Minister of Investment and Downstreaming and Switzerland’s Federal Councillor for Economic Affairs in the Canton of Basel-Stadt.

The countries have also established cooperation on smart factory development involving private-sector companies from both nations.

“Through strategic cooperation, Indonesia and Switzerland are using the momentum of 75 years of diplomatic relations to further develop a complementary and mutually beneficial partnership,” Ngurah said.

The MoU between Nongsa Digital Park and PHOENIQS AG also follows the Indonesia-Switzerland Business Forum on digital economy and artificial intelligence, organized by the Indonesian Embassy in Bern in June 2026 in the Canton of Zug.

The Indonesian Embassy in Bern continues to promote business forums and investment partnerships with Swiss companies, particularly small and medium-sized enterprises specializing in innovative and low-carbon technologies.

This partnership forms part of Indonesia’s economic diplomacy strategy to strengthen the national digital industry and support the achievement of Indonesia’s Golden Vision 2045.

Conclusion

The partnership between Indonesia and Switzerland marks an important step toward strengthening Indonesia’s sovereign AI capabilities and digital independence. Through the collaboration between Nongsa Digital Park and PHOENIQS AG, Indonesia aims to develop secure, high-performance computing infrastructure while expanding its role in Southeast Asia’s digital economy. The initiative also highlights the importance of international partnerships in advancing AI innovation and supporting Indonesia’s Golden Vision 2045.

Read more: Indonesia’s Communications Ministry Identifies Five Key AI Risks, from Digital Gaps to Data Sovereignty

Indonesia Technology & Innovation
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