Indonesia Proposes Sovereign AI Fund to Boost Tech Development
- tech360.tv
- Aug 12, 2025
- 2 min read
Indonesia is planning to establish a sovereign artificial intelligence fund to support its ambitions of becoming a regional AI hub, according to a government white paper.
The proposed fund would be managed primarily by Danantara Indonesia, the country’s sovereign wealth fund, which oversees more than USD 900 billion in assets.
The strategy is part of a broader national roadmap on AI, aimed at attracting foreign investment and positioning Indonesia in the global AI and semiconductor race.
The 179-page white paper outlines a 2027 to 2029 timeline for setting up the fund and recommends a public-private financing model. It also suggests increasing fiscal incentives for domestic AI investors, though specific details were not provided.
The roadmap, which is still open for public feedback, was released by the communications and digital ministry. It assesses Indonesia’s computational readiness and outlines AI policy strategies through 2030.
The document notes that Indonesia is in the early stages of AI adoption. Industry contributors to the report include Chinese tech firm Huawei and Indonesian technology company GoTo.
A report by the Boston Consulting Group in April projected that ASEAN countries could see GDP gains of 2.3% to 3.1% from AI by 2027, with Indonesia expected to experience the largest absolute growth.
Challenges identified in the roadmap include a shortage of skilled talent, limited research funding, uneven internet access outside major cities, and risks related to misinformation and data security.
Global tech firms such as Nvidia and Microsoft have shown interest in Indonesia’s AI initiatives.
Indonesia plans to launch a sovereign AI fund by 2029
Danantara Indonesia to manage the fund, with over USD 900 billion in assets
Roadmap outlines AI policy strategies through 2030
Source: REUTERS
