Sovereign AI could boost Indonesia’s GDP by USD $140 billion by 2030
Indosat has published the Empowering Indonesia Report 2025, which details the potential contribution of sovereign artificial intelligence (AI) to Indonesia's digital economy and economic growth.
The Empowering Indonesia Report 2025, produced in collaboration with research firm Twimbit, outlines the strategic importance of sovereign AI as Indonesia targets GDP expansion and seeks to reach high-income nation status by 2038. According to the report, sovereign AI could contribute up to USD $140 billion to the country's GDP by 2030 and drive annual economic growth of up to 6.8%.
Key pillars
The report highlights five pillars considered essential for achieving AI sovereignty in Indonesia: robust digital infrastructure, a sustainable talent pool, a thriving AI industry, strong research and innovation capacity, and a solid regulatory and ethical framework.
Researchers project that meaningful progress in these areas would not only enhance Indonesia's international competitiveness but also increase productivity by up to 18% in services, 15-20% in manufacturing, and 5-8% in agriculture. These improvements could support Indonesia in achieving high-income status as early as 2041, or even 2038 in the most optimistic scenario.
"AI is not just about technology-it's about national independence. AI sovereignty means developing technology that reflects the values of Pancasila, ensures ethical and secure use, and delivers benefits equitably to all Indonesians."
This was the perspective shared by Nezar Patria, Vice Minister of Communication and Digital Affairs of the Republic of Indonesia. The emphasis on national independence underscores Indonesia's focus on locally relevant, ethical technological advancement.
Investment and infrastructure
The report estimates that Indonesia requires USD $3.2 billion in investment by 2030 to scale up national computing capabilities. At present, Indonesia's data centre capacity for AI is less than 1% of the global market. The authors of the report stress the urgency for expanding renewable-powered data centres and further developing 5G networks.
In support of a robust AI infrastructure, the report also calls for efforts to develop local digital talent. It identifies a need for 400,000 AI professionals by 2030, which would necessitate an investment of USD $968 million in education, training, and upskilling programmes. These measures aim to ensure that Indonesia has a workforce capable of driving and supporting its AI ambitions.
Industry and innovation
Indonesia's AI sector currently comprises 364 startups with a collective funding total of USD $1.08 billion. Among national initiatives is Sahabat-AI V2, a large language model with 70 billion parameters designed to support Bahasa Indonesia and several regional languages, such as Javanese, Sundanese, Balinese, and Batak. This initiative marks a shift in Indonesia's approach, moving from relying on imported technologies to actively developing its own AI solutions.
"Indonesia is uniquely positioned to lead in the era of sovereign AI. By strengthening its digital foundations and fostering an inclusive ecosystem, the nation can emerge as a regional hub for AI growth and accelerate its journey toward Golden Indonesia 2045."
This comment from Manoj Menon, Founder and CEO of Twimbit, reflects the ongoing effort to position Indonesia at the forefront of AI development in Southeast Asia.
National commitment
Vikram Sinha, President Director and CEO of Indosat Ooredoo Hutchison, commented on Indosat's role in supporting Indonesia's AI journey, stating:
"AI sovereignty is not just about innovation-it's about shaping a future that's owned and led by Indonesia. Through strategic collaboration and continuous innovation, Indosat is committed to delivering inclusive connectivity and ethical AI solutions that empower every Indonesian."
The report concludes by calling for cross-sector collaboration among government, industry, and education stakeholders to foster a sovereign AI ecosystem. Recommendations include strengthening digital infrastructure, nurturing local talent, and upholding strong ethical governance for AI technologies. The aim is for Indonesia not only to adopt but also to shape and export AI solutions, contributing to an inclusive digital future.
