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Indonesia Partners with India to Accelerate Digital Transformation, Targets Double-Digit Growth in the Creative Economy

5 hours ago | Digital Technology


Jakarta, INTI - Indonesia is strengthening its partnership with India to accelerate the development of the digital ecosystem, semiconductor industry, and creative economy, with a target of achieving double-digit growth in the creative sector.

Coordinating Minister for Economic Affairs Airlangga Hartarto said international collaboration is a key government strategy for leveraging emerging technologies to support national economic growth.

Speaking in Jakarta on October 25, 2026, Airlangga highlighted the importance of artificial intelligence (AI) in creating new economic opportunities.

“AI is not merely a substitute for jobs, but also a means of creating new employment opportunities and skills. This is why we need support from Special Economic Zones such as Singhasari. Through this collaboration, I hope the creative sector can achieve double-digit growth,” Airlangga said.

He noted that Indonesia and India share strong historical and cultural ties, providing a solid foundation for expanding cooperation in technology and the digital economy.

Indonesia and India Expand Cooperation in Emerging Technologies

Airlangga explained that relations between Indonesia and India have long been shaped by cultural exchange, art, knowledge, and philosophical thought.

These longstanding connections offer opportunities to strengthen bilateral cooperation amid the rapid development of the digital economy.

Advances in technology are also creating new opportunities for collaboration in artificial intelligence, the Internet of Things (IoT), machine learning, and quantum computing.

According to Airlangga, the accelerating pace of technological development requires adequate digital infrastructure. Strengthening this infrastructure is essential to supporting the growth of technology-driven industries.

Government Accelerates Data Center and Semiconductor Development

The growing adoption of digital technologies is driving increased demand for data centers and semiconductors.

To support the sector, the Indonesian government is collaborating with Arm to develop a national chip design ecosystem. The initiative aims to strengthen Indonesia’s capabilities in semiconductor technology development.

The government is also preparing several locations to accommodate rising investment interest in data centers.

Key areas include the Nongsa Special Economic Zone (SEZ) in the Riau Islands, an SEZ in South Tangerang, and the Karawang industrial area.

Nongsa SEZ is currently being expanded to support growing digital infrastructure requirements. The development also takes into account the availability of energy supplies and fiber-optic connectivity.

“This rapid development is driving demand for data centers and semiconductors, which we continue to promote across various Special Economic Zones,” Airlangga said.

Singhasari SEZ Positioned as a Hub for Research and Creative Industries

Beyond data center development, the government is encouraging the growth of special economic zones focused on technology and creativity.

One of the key areas is Singhasari SEZ, which is being developed as a center for research, innovation, and the commercialization of creative products.

The government expects improved digital infrastructure to help creative industry players enhance their data processing capabilities and develop innovative products.

Technology adoption is also expected to generate broader economic benefits by supporting business growth and creating new employment opportunities.

Airlangga believes that developing technology-focused special economic zones can contribute to the government's target of achieving double-digit growth in the creative economy.

AI Expected to Generate New Employment Opportunities

Airlangga emphasized that artificial intelligence should not be viewed solely as a technology that replaces human workers. Instead, AI can create new types of jobs and increase demand for specialized skills.

The government therefore sees technology development as an effort that must go hand in hand with strengthening the industrial ecosystem and creative sectors.

Cooperation with India, alongside the development of technology-focused special economic zones, forms part of Indonesia’s broader strategy to accelerate national digital transformation.

Through these initiatives, Indonesia aims to strengthen the competitiveness of its technology industry while increasing the creative economy’s contribution to national economic growth.

Conclusion 

Indonesia’s partnership with India aims to accelerate digital transformation, strengthen the semiconductor and data center industries, and unlock new opportunities in the creative economy. Through AI adoption, digital infrastructure investment, and the development of technology-focused Special Economic Zones, the government seeks to enhance national competitiveness and achieve double-digit growth in the creative sector.

Read more: Indonesia’s Communications Minister Meutya Hafid Promotes T3-Based Digital Archiving to Improve Public Services

Indonesia Technology & Innovation
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