Jakarta, INTI - The Ministry of Communication and Digital Affairs (Kemkomdigi) views the downstream processing of critical minerals such as nickel and copper as a strategic opportunity to strengthen Indonesia’s artificial intelligence (AI) industry, particularly as the country accounts for around 62% of global mined nickel production.
Vice Minister of Communication and Digital Affairs Nezar Patria said domestic mineral processing should be directed toward supporting the development of resilient, efficient, and sustainable digital infrastructure.
According to Nezar, Indonesia’s abundant mineral resources can be leveraged to strengthen the country’s position within global technology supply chains.
“If the world expects Indonesia to provide raw materials for the energy and digital transitions, Indonesia must ensure that the resulting value chain is sustainable for all parties,” Nezar said in a statement from Kemkomdigi confirmed in Jakarta on Thursday, October 8, 2026.
Nickel and Copper Become Key Components of AI Infrastructure
Nezar explained that nickel and copper are valuable not only as mining commodities but also as essential materials for developing infrastructure that supports AI technologies.
The two minerals are used in a wide range of technological applications, from batteries to electrical systems.
Their role in the AI infrastructure ecosystem includes energy storage batteries, electrical equipment, energy transmission networks, and systems designed to support the operational resilience of data centers.
According to Nezar, the connection between the mining and digital technology sectors creates an opportunity for Indonesia to increase the value of its mineral resources through downstream processing.
This development is also closely linked to growing energy and infrastructure requirements as the global AI industry continues to expand.
Indonesia Accounts for Around 62% of Global Nickel Production
Indonesia holds a strategic position in the global mineral supply chain, contributing around 62% of worldwide mined nickel production.
This significant share provides an opportunity for Indonesia to expand its role in the international technology industry and capture greater value from its natural resources.
However, Nezar stressed that mineral processing must take environmental and social considerations into account.
He emphasized that downstreaming should involve more than simply establishing processing facilities near mining sites.
“Downstreaming must mean more than simply processing minerals near mining sites. It must include improved environmental performance, stronger traceability, responsible labor practices, the use of low-carbon energy, and serious attention to waste, water, and impacts on local communities,” he said.
According to Nezar, applying sustainability principles is an essential part of developing Indonesia’s mineral value chain.
AI Data Centers Require Power, Infrastructure, and Skilled Talent
Kemkomdigi highlighted that developing the AI industry requires more than a reliable supply of critical minerals.
Data center development also depends on adequate physical infrastructure, energy supplies, human resources, and effective governance.
Key requirements include sufficient electricity, fiber-optic networks, suitable land, cooling systems, data-processing chips, skilled technology professionals, and responsible governance frameworks.
Nezar said AI development requires collaboration across multiple sectors because its infrastructure needs are closely connected to energy, industrial, financing, and environmental policies.
As a result, building an AI ecosystem cannot be viewed solely as a digital transformation agenda.
Kemkomdigi Eyes Indonesia as a Regional AI Hub
Nezar said Indonesia has the potential to become a regional center for AI development.
This opportunity is supported by the country’s strategic geographic position, expanding digital economy, and growing pool of digital talent.
However, he emphasized that these advantages must be accompanied by adequate infrastructure and stronger domestic capabilities to generate greater value from the technology industry.
Kemkomdigi is also encouraging AI industry growth to strengthen Indonesia’s domestic technological capabilities and create more high-skilled employment opportunities.
“We must turn this growth into high-value job creation, stronger domestic capabilities, and sustainable economic development,” Nezar said.
Through mineral downstreaming and stronger digital infrastructure, the government sees an opportunity for Indonesia to increase its participation in the global AI value chain while creating greater domestic economic value.
Conclusion
Indonesia sees nickel and copper downstreaming as a strategic opportunity to support AI infrastructure while increasing the domestic value of its mineral resources. With sustainable processing, stronger infrastructure, and skilled talent, Indonesia aims to strengthen its position in the global AI value chain.
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