Indonesia Eyes AI Future with Sovereign AI Fund Initiative

In a bid to position itself as a regional powerhouse for artificial intelligence, Indonesia has unveiled plans for a 'sovereign AI fund,' according to a government document. This move, part of Southeast Asia's largest economy's new national AI roadmap, aims to lure foreign investments and compete in the global tech race.

With neighboring Malaysia already securing substantial investments, Indonesia's strategy includes a 179-page white paper that proposes the fund be managed by Danantara Indonesia, its newly formed sovereign wealth fund. The paper hints at a 2027-2029 timeline to establish the fund through a public-private partnership model, though specific financial details remain unspecified.

Signed by industry players such as Huawei and GoTo, the roadmap outlines Indonesia's AI readiness and strategizes policy directions until 2030. While challenges include talent deficits and infrastructure hurdles, tech giants like Nvidia and Microsoft are investing in Indonesia's burgeoning AI sector.

(With inputs from agencies.)