Indonesia plans sovereign AI fund to become regional technology hub

  • Published on 13/08/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The Ministry of Communication and Digital Application (Komdigi) has launched the National Artificial Intelligence Roadmap White Paper, proposing the creation of a sovereign Artificial Intelligence (AI) fund − to be managed by Danantara Indonesia − aimed at positioning Indonesia as a regional hub for AI technology. 

According to the 179-page white paper, the Sovereign AI Fund is planned for the 2027–2029 period under a public-private partnership (PPP) scheme. While the size of the fund has not yet been disclosed, Danantara − managing assets worth over US$900 billion (Rp14,612 trillion) is projected to be the main operator.

As reported by Reuters on Tuesday, August 12, 2025, Komdigi outlined financing instruments that include establishing a Sovereign AI Fund with a clear legal basis, creating a blended financing model for strategic AI projects, and increasing fiscal incentives for domestic AI investors. The government stated that the roadmap remains open for public feedback before being finalized.

The white paper also maps Indonesia’s AI readiness, policy strategies through 2030, and key challenges, including a shortage of skilled talent, low research funding, connectivity gaps in rural areas, and risks of disinformation and data breaches.

Several industry players, including Huawei and PT GoTo Gojek Tokopedia (GOTO), contributed to the report’s preparation.

Reuters also cited an April report by Boston Consulting Group estimating that ASEAN countries could see an additional 2.3 percent–3.1 percent GDP growth by 2027 from AI adoption, with Indonesia expected to experience the largest absolute impact.

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