Report: Sovereign AI could add US$140b to Indonesia's GDP by 2030

Indonesia’s journey toward becoming a high-income nation could be fuelled by sovereign artificial intelligence (AI), with potential contributions of up to US$140 billion to GDP by 2030, according to Indosat Ooredoo Hutchison’s latest report, “Empowering Indonesia Report 2025: Building Bridges of Tomorrow”.

Developed in collaboration with research firm Twimbit, the report identifies sovereign AI as a cornerstone for Indonesia’s digital economy and inclusive growth. It projects that effective execution could lift annual economic growth by as much as 6.8%, moving Indonesia closer to its Golden Indonesia 2045 vision.

The study outlines five pillars of AI sovereignty - robust digital infrastructure, sustainable talent development, industry innovation, research excellence, and ethical governance. Collectively, these form the framework for Indonesia’s transformation from an AI user to a global technology creator.

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“AI is not just about technology - it’s about national independence. AI sovereignty means developing technology that reflects the values of Pancasila, ensures ethical and secure use, and delivers benefits equitably to all Indonesians,” said Nezar Patria, vice minister of communication and digital affairs.

To strengthen digital competitiveness, Indonesia will require an estimated US$3.2 billion investment in national computing and 400,000 AI professionals by 2030. The country currently accounts for less than 1% of global AI data centre capacity, underlining the need to scale renewable-powered infrastructure and expand 5G networks.

The report also points to Indonesia’s emerging AI ecosystem: 364 AI startups have collectively raised US$1.08 billion to date. Among the country’s national innovation efforts is Sahabat-AI V2, a 70-billion-parameter large language model (LLM) trained in Bahasa Indonesia and regional languages such as Javanese, Sundanese, Balinese, and Batak - symbolising a shift toward locally built technology.

“Indonesia is uniquely positioned to lead in the era of sovereign AI. By strengthening its digital foundations and fostering an inclusive ecosystem, the nation can emerge as a regional hub for AI growth and accelerate its journey toward Golden Indonesia 2045,” said Manoj Menon, founder and CEO of Twimbit.

Reaffirming Indosat’s commitment to national digital sovereignty, Vikram Sinha, president director and CEO of Indosat Ooredoo Hutchison, said: “AI sovereignty is not just about innovation - it’s about shaping a future that’s owned and led by Indonesia. Through strategic collaboration and continuous innovation, Indosat is committed to delivering inclusive connectivity and ethical AI solutions that empower every Indonesian.”

The Empowering Indonesia Report 2025 concludes with a call for cross-sector collaboration to strengthen AI infrastructure, cultivate digital talent, and establish robust governance. With sovereign AI as its foundation, Indonesia is preparing to move beyond adoption - to architect an inclusive, globally competitive digital future.

This is the third edition of the Empowering Indonesia Report, revealing that the nation’s early GenAI momentum is fuelled by a tech-savvy population and a growing appetite for digital innovation.

“Indonesia has set a bold target to quadruple its AI talent by 2030, positioning itself to reach the same talent density as the world’s leading AI nations,” the report said. “AI talent remains a core driver for Indonesia’s wider digital
ecosystem which Komdigi projects a demand of 12 million digital professionals by 2030.”

Yet challenges persist: while many Indonesians actively use ChatGPT and other global platforms, local alternatives remain limited. Most AI tools deployed in Indonesia today are trained on foreign data, raising concerns over dependency, bias, misinterpretation, and broader social risks.

Moreover, Indonesia’s AI ecosystem still runs largely on cloud platforms - fast and scalable, but physically distant from users. As demand grows for real-time performance and stronger data control, the next leap will happen at the edge, where processing power moves closer to people and devices.

This shift places telcos at the centre of Indonesia’s AI evolution. With networks already reaching millions, they are poised to become more than connectivity providers - transforming into key enablers of AI infrastructure.

Data traffic in the country has surged almost fourfold between 2019 and 2024, yet high-speed access remains patchy, with only 26.3% 5G coverage. To sustain this momentum and strengthen digital sovereignty, industry players must accelerate investments in edge computing and reliable 5G networks - the foundations of Indonesia’s next AI frontier, Indosat said.

According to the AI implementation matrix, industry opportunities in Indonesia can be mapped across four main categories. Quick Wins refer to solutions that deliver measurable impact through fast deployment - such as using AI for service personalisation to better understand customer needs. Efficiency Boosters focus on process automation, content generation, and pattern detection - applications that streamline operations and raise productivity.

Operation Enhancements involve leveraging AI for data analysis and performance optimisation to support sharper business decision-making. Finally, Strategic Investments represent long-term innovations with transformative potential - spanning forecasting systems, decision-support intelligence, and advanced analytics that can reshape entire industries.

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