Government Accelerates Digital Ecosystem Through Cooperation with India

Jakarta (ANTARA) — The government is accelerating the digital ecosystem to stimulate national economic growth by strengthening the creative economy and speeding up technology-led digital transformation through cooperation with India.

“AI is not merely a replacement for jobs; it is also a means of creating new jobs and skills. That is why we need support from special economic zones such as Singhasari. I hope this collaboration will help the creative sector grow at double-digit rates,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement received in Jakarta on Sunday.

Airlangga said Indonesia and India had strong historical and cultural ties. Their longstanding links in culture, the arts, knowledge and philosophical thought provided valuable foundations for closer cooperation in the digital economy.

The two geographically close countries are now becoming increasingly connected through digital links and advanced technology.

Airlangga added that rapid technological change towards the era of artificial intelligence (AI), the Internet of Things (IoT), machine learning and quantum computing required robust digital infrastructure.

The surge in technology adoption is driving rapid growth in global demand for data centres and the semiconductor industry.

To support the digital ecosystem, the government is working with Arm to develop a chip-design ecosystem and promote the domestic semiconductor industry.

To accommodate strong investor interest in data centres, the government is directing development towards special economic zones (SEZs), including the expanding Nongsa SEZ in the Riau Islands, an SEZ in South Tangerang, and the Karawang area. This development is being coordinated with the availability of energy and fibre-optic connectivity.

The government is also encouraging technology- and creativity-based SEZs, such as Singhasari, to develop into centres for research, innovation and the commercialisation of creative work.

Processing creative data through data centres and SEZ infrastructure is expected to generate a multiplier effect and significantly accelerate growth in the creative economy, bringing it to double-digit rates.

“These rapid developments are driving demand for data centres and semiconductors, whose development we are continuing to promote in various special economic zones,” Airlangga said.