AI Infrastructure Must Be Strengthened to Boost Competitiveness: Nezar
Jakarta (ANTARA) - Deputy Minister of Communication and Digital Affairs (Wamenkomdigi) Nezar Patria has stated that Indonesia needs to strengthen the foundational infrastructure supporting artificial intelligence (AI) so that it does not merely become a user of the technology, but is able to take a role in the global AI supply chain.
He assessed that global AI competition has shifted from application development towards mastery of supporting infrastructure such as energy, data centres, chips, computing and talent.
“We have been kept busy playing downstream, but we have neglected the upstream. Yet the downstream is only the final product, which is perhaps more suitable for countries that position themselves as markets, whereas the upstream—AI infrastructure—is extremely important,” Nezar said in a statement confirmed in Jakarta on Thursday.
According to him, Indonesia has great potential to enter the global supply chain. One route is through the wealth of natural resources at its disposal, such as silica sand.
“Indonesia’s potential to enter the global supply chain is considerable. If we look at the infrastructure needed to make semiconductors, silica sand is required. Indonesia has roughly 340 million tonnes of silica sand reserves,” Nezar said.
“So I believe downstreaming is not merely a slogan. Downstreaming means processing minerals and other materials further. This is a strategic step that must be executed by all stakeholders in Indonesia, especially in the electronics industry, which is currently moving very dynamically,” he continued.
Nezar expressed hope that collaboration among infrastructure stakeholders could strengthen Indonesia’s bargaining position so that it can create a choke point within the global supply chain.
“It requires collaboration among all stakeholders in this infrastructure field to increase our bargaining position. We must be able to create choke points. When it comes to the semiconductor industry, the countries that will control the supply chain routes are those able to create choke points,” Nezar asserted.
Beyond infrastructure, adequate talent is another crucial factor. According to Nezar, superior talent can be the key to working around weaknesses in infrastructure.
He emphasised that Indonesia’s success in harnessing AI developments will be determined not only by its ability to adopt technology, but also by its readiness to build a comprehensive ecosystem. Nezar believes the choices made now will determine Indonesia’s position in global AI development.
“The future of AI is being written in Asia, and Indonesia has an important role in this narrative. The policy choices we make today will determine who enjoys the benefits of AI in the future,” he concluded.