From an Indonesia\u2013Singapore artificial intelligence (AI) initiative\nto the emergence of local game developers and efforts to attract startup\ninvestment, the third day of Bali Tech Week highlighted the challenge of\nturning technological ambition into national economic value.<\/p>\n
Indonesia has become one of the world\u2019s largest digital markets.\nHowever, a large number of digital consumers does not guarantee that\nIndonesia will become a leading technology producer. The next challenge\nis to build domestic capabilities, intellectual property, investment and\ninternational partnerships so that Indonesia can capture greater\neconomic value from the digital transformation.<\/p>\n
This theme came into focus on the third day of Bali Tech Week 2026\nthrough the AI Impact Summit, the Indonesia Game Developer Exchange\n(IGDX) and discussions on startup investment. These initiatives reflect\nIndonesia\u2019s efforts to move from being a technology user to a country\ncapable of developing and commercialising it.<\/p>\n
Project NUSA: A New Approach to AI Sovereignty<\/strong><\/p>\n One of the main announcements at the AI Impact Summit was Project\nNUSA, short for Network for Unified, Secure AI. It is a collaboration\nbetween Indonesia\u2019s Artificial Intelligence Industry Research and\nInnovation Collaboration (KORIKA) and AI Singapore. The initiative was\nintroduced by KORIKA chairman Hammam Riza and AI Singapore\nrepresentative William Tjhi.<\/p>\n The collaboration combines Singapore\u2019s research ecosystem with\nIndonesia\u2019s large market, growing technology workforce and demand for AI\napplications across various sectors.<\/p>\n Project NUSA\u2019s success will depend on its ability to produce local\nexpertise, functioning systems and commercially valuable applications,\nrather than merely announcing a partnership.<\/p>\n AI as a Driver of Economic Growth<\/strong><\/p>\n Coordinating Minister for Economic Affairs Airlangga Hartarto,\nspeaking via video, highlighted AI\u2019s potential to support Indonesia\u2019s\neconomic growth.<\/p>\n AI can improve manufacturing efficiency, strengthen financial risk\nanalysis, optimise logistics and enhance public services. However, these\nbenefits require reliable infrastructure, high-quality data, trained\nprofessionals and adjustments to business processes.<\/p>\n Micro, small and medium-sized enterprises (MSMEs) also need access to\nthe technology. Affordable tools, practical training and applications\nsuited to industry needs can help them participate in the digital\ntransformation.<\/p>\n KORIKA also plays a role in connecting research, government policy\nand industry needs. Universities and research institutions need access\nto computing resources, data, funding and business partners if their\nresearch is to be developed into commercial products.<\/p>\n Meanwhile, industry needs solutions relevant to Indonesia, from\nagriculture and urban mobility to financial inclusion and public\nadministration. The aim is to foster local companies capable of\ndeveloping valuable technology and competing in regional markets.<\/p>\n The Gaming Industry: Indonesia\u2019s Digital Export\nOpportunity<\/strong><\/p>\n The three-day Indonesia Game Developer Exchange (IGDX) 2026 brought\ntogether game developers, publishers and international industry players.\nIndonesian Game Association chairman Shafiq Husein said about 240 game\ndevelopers took part.<\/p>\n Indonesia has a large gaming market, but much of its commercial value\nstill flows to overseas developers and platform owners. Strengthening\nlocal studios could create opportunities to develop original\nintellectual property, generate export revenue and provide jobs in\ntechnology and the creative industries.<\/p>\n IGDX provides an important forum for building business relationships,\nexploring publishing deals and expanding distribution opportunities.\nThis shows how Indonesia\u2019s digital economy can generate greater value\nthrough products and intellectual property that can be marketed\ninternationally.<\/p>\n Rp1 Trillion Startup Investment Target<\/strong><\/p>\n Edwin Hidayat Abdullah, director-general of the Digital Ecosystem at\nthe Ministry of Communication and Digital Affairs, said the government\naims to facilitate around Rp1 trillion in startup investment during\n2026.<\/p>\n As of 21 October, about Rp400 billion had been realised, while\nefforts were under way to secure a further Rp600 billion by the end of\nthe year.<\/p>\n Amid increasingly selective funding conditions, investors are now\npaying closer attention to sustainable revenue, profitability, customer\ndemand and clear business models.<\/p>\n Programmes such as HUB.ID can help connect startups with investors,\ncorporate customers and strategic partners. However, investment targets\nmust be distinguished from commitments and transactions that have\nactually been completed.<\/p>\n Indonesia\u2019s priority is not simply to attract capital, but to ensure\ninvestment supports companies capable of building lasting technological\nand commercial value.<\/p>\n Open Networks: Lessons from India\u2019s ONDC for Indonesia\u2019s\nDigital Economy<\/strong><\/p>\n Bali Tech Week 2026 also examined open digital commerce networks in a\nsession featuring T. Koshy, founder, managing director and chief\nexecutive of India\u2019s Open Network for Digital Commerce (ONDC), and a\ncommissioner of Indonesia Open Network (ION). Moderated by Alvin\nEvander, the session discussed India\u2019s experience in building\ninteroperable digital commerce infrastructure.<\/p>\n Unlike conventional marketplaces, ONDC allows independent apps,\nmerchants and service providers to connect through a shared protocol.\nThis enables businesses to reach a wider commerce ecosystem without\nrelying entirely on a single platform.<\/p>\n The approach is relevant to Indonesian MSMEs, which face challenges\nin expanding their markets, improving digital visibility, managing\nlogistics and covering the costs of online commerce.<\/p>\n Indonesia Open Network (ION), which adopts India\u2019s ONDC architecture\nand the Beckn interoperability framework, is developing a similar\napproach tailored to Indonesian market conditions. ION aims to connect\nbuyer apps, seller platforms, logistics providers, payment services and\nother ecosystem participants through shared infrastructure.<\/p>\n Open networks could broaden market access, encourage competition and\ncreate room for service-provider innovation. India\u2019s experience shows\nthat digital economic growth need not depend on exclusive platforms; it\ncan be built on shared infrastructure that allows different businesses\nto collaborate.<\/p>\n International Partnerships and National Economic\nValue<\/strong><\/p>\n Project NUSA connects Indonesia\u2019s AI development with Singaporean\nexpertise, while IGDX gives local developers opportunities to engage\nwith international publishers and investors. These partnerships are\nimportant for expanding access to knowledge, capital and international\nmarkets.<\/p>\n However, they will bring greater benefits to Indonesia if they\nstrengthen domestic capabilities. In AI, priorities include developing\ntalent, relevant data, local applications and responsible technology\nmanagement. The gaming industry needs to strengthen intellectual\nproperty ownership, while startups need investment accompanied by market\naccess and commercial experience.<\/p>\n Indonesia\u2019s large market is an advantage, but it does not\nautomatically guarantee technological leadership. The challenge is to\nmake international partnerships a means of improving national\ncompetitiveness, rather than merely expanding the market for foreign\ntechnology.<\/p>\n From Digital Consumption to Technology Creation<\/strong><\/p>\n The third day of Bali Tech Week 2026 highlighted progress across\nseveral sectors. AI researchers are building national capabilities\nthrough collaboration, the government is promoting productivity, game\ndevelopers are creating products for global markets, and startups are\nseeking investment to expand their businesses.<\/p>\n These developments reflect the direction of Indonesia\u2019s digital\ntransformation: from an economy driven primarily by consumption towards\none that can create more of its own technology, products and economic\nvalue.<\/p>\n This transition requires sustained investment in talent, research,\ncommercialisation and coordination between institutions. Progress should\nbe measured by working technologies, growing companies, high-skilled\njobs and products capable of competing internationally.<\/p>\n Indonesia\u2019s digital future will be determined not only by how widely\ntechnology is adopted, but also by the country\u2019s ability to develop, own\nand commercialise it.<\/p>\n About Bali Tech Week 2026<\/strong><\/p>\n Bali Tech Week 2026 (BTW 2026) is an initiative of Indonesia\u2019s\nMinistry of Communication and Digital Affairs (Komdigi), managed with DS\nGroup as a platform for collaboration among government, industry,\nstartups, investors and the technology community.<\/p>\n The inaugural BTW 2026 is taking place from 19 to 23 October 2026 at\nthe Bali Beach Convention Centre in Sanur, Bali, under the theme\n\u201cArchipelago Ascending \u2014 Advancing Together, Innovating Further\u201d.\nBringing together 13 main events, BTW 2026 covers startups, gaming, AI,\ncyber security, digital assets, infrastructure, policy and investment.\nThe event is expected to attract more than 4,000 participants, including\n1,000 international delegates from over 30 countries.<\/p>",
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"sponsor": "Okusi Associates",
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