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Ministry of Communication and Digital Affairs of Indonesia: Nickel and Silica Position Indonesia for a Bigger Role in the Global AI Industry

4 hours ago | Artificial Intelligence


Jakarta, INTI - The government is preparing major steps to ensure that Indonesia becomes not only a global technology market, but also an important player in the artificial intelligence (AI) industry. One of the country’s key advantages highlighted today is its abundance of strategic natural resources.

Deputy Minister of Communication and Digital Affairs, Nezar Patria, stated that Indonesia has significant potential to enter the global AI industry supply chain due to its reserves of critical minerals needed for semiconductor and chip manufacturing.

“The government has been working with several semiconductor industries in Europe, Japan, including Arm Holdings in the UK. During the President’s visits to various countries, semiconductor issues have also become part of strategic discussions,” Nezar said in a written statement on Tuesday, May 19, 2026.

He explained that Indonesia has not yet become part of the main supply chain of the global AI industry. Therefore, the government is moving quickly and strategically to build a national AI industry ecosystem while also strengthening digital talent development.

According to Nezar, the development of the AI industry is closely linked to the semiconductor sector, which serves as the foundation of modern computing technologies, including GPU development and AI data centers.

He noted that Indonesia possesses strong potential to play a larger role in the global AI industry, supported by strategic natural resources such as nickel, cobalt, tin, silica sand, and zinc, all of which are essential materials for semiconductor and chip production.

“Unfortunately, most of these resources are still exported as raw materials. That is why downstream industrialization is extremely important so Indonesia does not remain merely a technology market,” he said.

National AI Roadmap and Future Competitiveness

Nezar also highlighted the intensifying global competition in AI development, which is currently dominated by the United States and China. He emphasized that semiconductor mastery and computing capacity will become decisive factors in determining a country’s future competitiveness.

“Chips will become a determining factor in whether a nation can compete in advanced technology battles such as artificial intelligence,” he stated.

At present, the government is also drafting a National AI Roadmap, which will serve as a strategic guideline for Indonesia’s AI development toward the vision of Digital Indonesia 2045.

“This National AI Roadmap is not merely a bureaucratic document, but our social contract for Indonesia’s future technology,” Nezar concluded.

Conclusion 

Indonesia is positioning itself to become a stronger player in the global AI ecosystem by leveraging its strategic mineral resources and accelerating semiconductor industry development. Through downstream industrialization, digital talent strengthening, and the preparation of a National AI Roadmap, the government aims to transform Indonesia from a technology consumer into a competitive force in the future AI-driven economy.

Read more: SKK Migas Launches AI Hackathon to Empower National Digital Talent

Indonesia Technology & Innovation
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