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Indonesia walks AI tightrope between China, US

Radhiyya Indra and Ni Made Tasyarani (The Jakarta Post)
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Wed, July 22, 2026 Published on Jul. 22, 2026 Published on 2026-07-22T17:21:56+07:00

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Coordinating Economy Minister Airlangga Hartarto (second left) visits technology and robotics exhibition booths during the World Artificial Intelligence Conference at the Shanghai World Expo Exhibition and Convention Center in Shanghai, China, on July 18, 2026. Held from July 17 to 20, the conference attracted around 300,000 visitors and featured more than 1,100 companies showcasing developments in artificial intelligence, intelligent computing and embodied intelligence across three venues. Coordinating Economy Minister Airlangga Hartarto (second left) visits technology and robotics exhibition booths during the World Artificial Intelligence Conference at the Shanghai World Expo Exhibition and Convention Center in Shanghai, China, on July 18, 2026. Held from July 17 to 20, the conference attracted around 300,000 visitors and featured more than 1,100 companies showcasing developments in artificial intelligence, intelligent computing and embodied intelligence across three venues. (Antara/Desca Lidya Natalia)

I

ndonesia's decision to join a new China-led artificial intelligence organization has raised questions over how Jakarta intends to navigate the intensifying technological rivalry between Beijing and Washington, even as the government insists it remains committed to working with both.

Last week, Indonesia became one of 29 founding members of the World Artificial Intelligence Cooperation Organization (WAICO), an intergovernmental body established in Shanghai that China says will promote international cooperation and global AI governance. Coordinating Economy Minister Airlangga Hartarto represented Jakarta at the signing ceremony.

The move came just months after Indonesia joined Pax Silica, a United States-led initiative aimed at strengthening AI and semiconductor supply chains, prompting questions over how Indonesia intends to navigate the growing technological rivalry between the two giants in the AI industry.

Airlangga rejected suggestions that WAICO and Pax Silica represented competing camps, arguing they served different objectives.

"These are not two conflicting initiatives, as their focus and priorities are somewhat different," he said, explaining that WAICO focuses on AI applications, while Pax Silica seeks to strengthen the broader AI ecosystem, including cooperation outlined under the Indonesia-US Agreement on Reciprocal Trade (ART).

Read also: Gen-Zers turn to AI for mental health support despite validity, privacy risks

The minister added that Indonesia's collaboration with a United Kingdom-based semiconductor company under President Prabowo Subianto's chip development program illustrated Jakarta's broader "multisource" strategy for developing its digital ecosystem.

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