Indonesia has proposed a “sovereign AI fund” in its bid to become a regional AI hub, as stated in its first AI roadmap guide according to Reuters which has sighted the white paper. The fund will be managed by the country’s new sovereign wealth fund Danantara Indonesia which controls over US$900 billion in assets. The white paper set a timeline of between 2027 to 2029 for the fund to be set up but did not disclose an amount for the fund. The paper is not finalised yet as it is still in the process of getting public feedback, the communications and digital ministry reportedly said.
Other proposals include increasing financial incentives for domestic investors in AI and adopting a public-private model to finance the country’s AI ambitions. The paper, which set out recommendations until 2030 adopted suggestions from industry players such as Huawei and GoTo, Indonesia’s leading technology company.
The report acknowledged that Indonesia is in the early stages of AI adoption.
There are projections that Indonesia will reap substantial gains from AI due to its massive market and a young population eager to adopt AI technology, however challenges remain such as the lack of infrastructure and connectivity especially outside big cities, lack of chips, talent and funding as well as risks of wrong information, data leaks and breaches of intellectual property rights, according to analysts.
Danantara Indonesia did not immediately reply to a request for comment from the press.