AI in mining could unlock US$308 B potential for Indonesia, says Deputy Minister

  • Published on 25/04/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

Artificial-Intelligence-in-Indonesia-The-current-state-and-its-opportunities

The use of artificial intelligence or AI technology in the mining industry is estimated to add an economic potential of US$308 billion (Rp5,200 trillion, said Deputy Minister of Communication and Digital Application Nezar Patria.

He cited that data analysis and decision-making accelerated by AI can accelerate the entire cycle, from exploration, production to mineral distribution.

"This is indeed the goal of adopting AI technology, with the potential to reach US$308 billion," Nezar said on Thursday, April 24, 2025.

According to Nezar, the main advantage of AI in mining lies in process automation. This not only accelerates exploration activities to mineral distribution, but also frees workers from repetitive tasks. That way, the workforce can be diverted to more valuable activities such as innovation and business development.

Moreover, AI also supports the sustainable mining agenda. This technology allows companies to manage mining waste more efficiently, minimize environmental impacts, and support decarbonization efforts.

Although promising, the integration of AI in the mining industry is not without challenges. One of the crucial issues is the high energy consumption for GPU or Graphics Processing Unit.

GPU has thousands of small cores that can work in parallel. This way of working is suitable for AI development, especially deep learning, which requires many matrix and vector calculations simultaneously.

Responding to this dynamic, the government through the Ministry of Communication and Digital Application has developed a 3P strategy − Policy, People, and Platform − to strengthen the AI ecosystem.

In addition, President Director and CEO of Indosat Ooredoo Hutchison, Vikram Sinha, revealed that early adoption of AI technology in Indonesia has significant potential to drive national economic growth.

In a research report published early last year, the company showed that broad AI integration could help Indonesia increase Gross Domestic Product or GDP growth from 5 percent to 8 percent.

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