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Indonesia Positions Chip Diplomacy as a Strategic Tool to Advance AI Development

14 hours ago | Electronics and Component


Jakarta, INTI - Deputy Minister of Communication and Digital Affairs Nezar Patria emphasized that chip diplomacy and the utilization of critical minerals must become key instruments of Indonesia’s digital geopolitics amid global competition in artificial intelligence (AI) development.

Nezar delivered the statement at the Jakarta Geopolitical Forum in South Jakarta on Thursday, July 9, 2026. He highlighted that Indonesia should leverage its critical mineral resources as strategic bargaining power to secure access to computing capabilities, technology transfer, and manufacturing partnerships while strengthening national capacity.

“Indonesia needs to use its critical minerals to negotiate better access to computing, technology transfer, and manufacturing partnerships,” Nezar stated.

Leveraging Critical Minerals for Global AI Supply Chain Influence 

He explained that Indonesia holds a strategic position in the global technology supply chain due to its significant reserves of critical minerals required for the AI and semiconductor industries.

“We have the world’s largest nickel reserves, giving us a strong position in the global battery supply chain. We are the second-largest cobalt producer in the world, a key material for high-performance batteries and advanced semiconductors. In addition, we are the third-largest exporter of copper ore, an essential mineral for the cabling and cooling systems of data centers that support AI infrastructure,” he said.

According to Nezar, these mineral resources represent a strategic advantage that can enable Indonesia to move beyond being merely a technology consumer and become an important player in the global AI ecosystem.

“These mineral resources are our strategic advantage. They allow us to move beyond simply consuming technology and become a key player in the global AI ecosystem,” he added.

Building Indonesia’s AI Ecosystem Through Digital Sovereignty 

Amid the growing AI rivalry between the United States and China, Nezar said Indonesia must establish its own strategic path through digital diplomacy. This approach is supported by four key strengths: ownership of critical minerals, Southeast Asia’s largest digital market, a demographic dividend, and computing capacity that must be strengthened through talent development, data infrastructure, and national industries.

He stressed that in the AI era, a country’s technological advantage is no longer determined solely by who develops technology first, but by the ability to build an ecosystem that integrates talent, computing power, data, and industries to ensure AI can be widely adopted across sectors.

As part of this strategy, the government is prioritizing chip diplomacy, strengthening energy supplies for data centers, developing AI and semiconductor talent, enhancing data sovereignty, and advancing AI solutions tailored to Indonesia’s needs and characteristics.

Concluding his remarks, Nezar Patria emphasized that Indonesia’s ambition to become a strategic technology power toward Indonesia Emas 2045 depends on consistently building a sustainable digital foundation.

“Digital power is ultimately not only about technology. It is about political commitment, the willingness to maintain cross-government strategies, gradually build institutions, and shape Indonesia’s new geopolitical future,” Nezar concluded.

Conclusion

Indonesia’s chip diplomacy strategy reflects its ambition to become a key player in the global AI ecosystem. By leveraging critical minerals, strengthening digital capabilities, and developing national AI infrastructure, Indonesia aims to build technological independence while contributing to the future of responsible and inclusive AI development.

Read more: BKPM Reveals Australian Company's USD 350 Million Investment Plan for Indonesia's Battery Industry

Indonesia Technology & Innovation
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