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Indonesia targets US$100 billion AI investment to boost digital economy: Airlangga

  • Published on 24/09/2025 GMT+7

  • Reading time 4 minutes

  • Author: Gusty Da Costa

  • Editor: Imanuddin Razak

Coordinating Minister for the Economy, Airlangga Hartarto, emphasized the potential for artificial intelligence (AI) investments to accelerate the nation's growth, citing the government’s ongoing efforts to integrate AI and digital technology into the country’s economic framework and global tech companies’s interest to invest some US$100 billion in the technology.

"We are positioning Indonesia as a key player in the global AI and digital economy. Investments in AI will not only boost technological advancements, but also create thousands of jobs in the process. Our goal is to attract some of the US$100 billion in AI investments and channel them into the development of data centers in Special Economic Zones, like those in Nongsa, Batam," Airlangga told the 3rd Kagama Leaders Forum held at the Abdurrahman Saleh Building, State radio station RRI, in Jakarta on Wednesday, September 24, 2025.

The minister further outlined the government's strategy to foster a conducive environment for these investments, including offering incentives to tech firms and ensuring that the nation's workforce is equipped with the necessary skills. The government has also set ambitious goals to enhance digital literacy, aiming to produce 10.7 million digital talents by 2030.

As part of its commitment to digital economy development, Airlangga cited, the Indonesian government is introducing programs aimed at facilitating internships for university graduates, thus easing their transition into the workforce. He called for private companies, including those in the tech and AI sectors, to participate in these programs, ensuring that graduates are prepared for real-world challenges.

The government’s vision aligns with the broader ASEAN Digital Economic Framework, which aims to propel the region’s economy to $2 trillion by 2030, with Indonesia projected to contribute around $600-700 billion. This forward-looking approach also includes international agreements like the Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), which incorporates digital trade elements, further positioning Indonesia as a digital economy leader.

"We are not just looking to attract investment but also to build a sustainable and competitive digital economy that can drive Indonesia to the top ranks globally," Airlangga concluded, noting that AI will be the driving force behind the country’s rise in the global economic hierarchy, positioning Indonesia among the top four G20 nations by 2045.

Rector declares UGM as AI ready university

On the same occasion, Rector of Gadjah Mada University (UGM), Ova Emilia, reaffirmed UGM's commitment to becoming an "AI Ready University".

In her speech, Ova emphasized that UGM is prepared to undergo a digital transformation, with the hope that Artificial Intelligence (AI) will become a new instrument capable of shaping the future workforce and development.

"UGM is committed to becoming a pioneer in digital transformation and scientific development, with a strategic focus on Artificial Intelligence. We hope that AI will shape the future, both in the workforce and in societal development,"she said.

The event, which was organized by the Gadjah Mada University Alumni Association (Kagama) and attended by key stakeholders from industry, academia, and the government, also highlighted UGM’s four strategic programs supporting digital transformation.

The first program focuses on building an inclusive AI ecosystem through pentahelix collaboration between academia, government, industry, society, and the media.

UGM has also established the UGM AI Research Flagship, which focuses on three key are. as: medicine, specifically precision medicine and early diagnosis; energy, aimed at improving efficiency and supporting the transition to renewable energy; and food security, focusing on precision agriculture and more effective food distribution systems.

Additionally, UGM is committed to fostering AI leadership through the UGM AI Leadership Initiative, which is grounded in ethics, responsibility, and a culture of innovation.

The rector also cited that UGM is working to develop digital talent through an AI curriculum that is integrated across various disciplines, ensuring that every UGM student has adequate digital literacy.

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Investment Artificial Intelligence (AI) Digital Economy UGM

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