Jakarta, INTI - The telecommunications industry's experience in dealing with the expansion of over-the-top (OTT) companies serves as a warning for Indonesia as it enters the era of Artificial Intelligence (AI).
Secretary-General of the Ministry of Communication and Digital Affairs (Komdigi), Ismail, cautioned that Indonesia must avoid becoming merely a market for global AI technology companies.
Indonesia Seeks Stronger Bargaining Power Against Global AI Player
To address this challenge, the government is calling on telecommunications operators to consolidate their strengths through an Indonesia Incorporated strategy. The initiative aims to strengthen Indonesia's collective bargaining power and ensure the country captures greater economic value from AI development.
Ismail warned that the business pressures previously experienced by telecommunications operators following OTT expansion could happen again if industry players respond to the rapid growth of AI independently.
Indonesia risks becoming merely a market and distribution channel for global technology companies, while most of the economic benefits flow to foreign players.
"If this approach continues, we will essentially roll out the red carpet for global players while remaining nothing more than a market. Telecommunications operators will simply become their business channels, receiving only a fraction of the benefits," Ismail said during a panel discussion at Lintas Teknologi Solutions Day 2026 in East Jakarta on Saturday, October 31, 2026.
Government Calls for Unified AI Investment and Negotiation Strategy
To prevent this scenario, Komdigi is encouraging the government and telecommunications operators to work together in developing business models and negotiation strategies when engaging with global technology companies.
The ministry is positioning itself as a strategic orchestrator to consolidate Indonesia's market strength into a unified bargaining position.
"Komdigi is taking on the role of an orchestrator to help improve the existing business model. Going forward, the government and telecommunications operators must sit at the same table when engaging with global players to strengthen our bargaining position. We have the market," Ismail emphasized.
The Indonesia Incorporated strategy is also considered essential to strengthening the country's position across every layer of the AI ecosystem through coordinated investments and collective negotiations, rather than allowing individual companies to negotiate separately.
"If we make purchases or conduct negotiations independently, the outcome will be very different compared to adopting an Indonesia Incorporated approach across every stack. We must build bargaining power as a nation, rather than approaching these opportunities as individual companies acting on their own," Ismail explained.
Although competition among telecommunications operators remains important to delivering the best services, the industry must also identify areas where collaboration can generate greater collective benefits.
"AI is ultimately a matter of national sovereignty in the years ahead. It involves data sovereignty and digital sovereignty. Competition among operators is natural and necessary. However, we must identify the areas where competition is not necessary," Ismail concluded.
Conclusion
Indonesia is seeking to strengthen its position in the global AI landscape through closer collaboration between the government and telecommunications industry. By adopting the Indonesia Incorporated strategy, the country aims to build stronger collective bargaining power, secure greater economic benefits from AI development, and protect its data and digital sovereignty. A unified approach will be essential to ensuring Indonesia becomes an active participant in the global AI ecosystem rather than merely a market for foreign technology providers.
Read more: Indonesia and Palm Oil-Producing Nations Strengthen Ties with China to Advance AI-Driven Production