Indonesia must take a two-pronged approach that focuses on both development and governance to realize its ambition to become a regional leader in artificial intelligence as part of its impending technological transformation.
n a landmark move symbolizing Indonesia’s growing influence in the digital domain, renowned United States tech giant Nvidia announced its plan to establish a US$200 million artificial intelligence development center in Surakarta, Central Java. This ambitious project, in collaboration with Indosat Ooredoo Hutchinson, underscores the country’s strategic intent to become a nexus of AI development in Southeast Asia.
The plan to establish an AI center was solidified during the recent visit of Nvidia CEO Jensen Huang for AI Day in Jakarta, underscoring Indonesia’s potential to bolster local telecommunications infrastructure and develop local talent. This initiative aligns with Indosat’s recent integration of Nvidia’s next-generation chip architecture Blackwell, aiming to propel the country into a new era of sovereign AI and technological advancement.
As Indonesia aspires to lead in AI, it confronts various challenges related to governance and crime that often accompany rapid technological advancements.
Issues such as data breaches and cyberattacks, particularly in the public sector, have raised concerns about the vulnerability of data centers that are not adequately protected. These challenges necessitate more robust governance frameworks to ensure that the benefits of AI are realized without compromising societal norms and existing legal standards.
Recent statistics from the Communications and Informatics Ministry reveal a troubling trend: between 2019 and 2024, Indonesia experienced 124 violations of personal data, including 111 incidents directly related to data breaches. Alarmingly, a third of these breaches involved ransomware or other forms of extortion, underscoring the urgent need for strengthened cybersecurity measures in the face of growing digital threats.
Recognizing the critical need for enhanced data security, Indonesia has established a comprehensive legal framework with the issuance of Law No. 27/2022 on personal data protection (PDP). This law aims to safeguard personal data and ensure that data management practices comply with international standards, providing a robust basis for securing digital transactions and protecting citizen privacy.
But the PDP Law is clearly not sufficient to support Indonesia’s ambition to become a regional AI nexus.
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