Indonesian Political, Business & Finance News

Indonesia's AI Market Grows Rapidly, Technology Collaboration Strengthens

| | Source: KOMPAS Translated from Indonesian | Technology
Indonesia's AI Market Grows Rapidly, Technology Collaboration Strengthens
Image: KOMPAS

Blaize Holdings, Inc. and PT Datacomm Diangraha are capitalising on the increasingly strategic opportunities in Indonesia’s artificial intelligence (AI) market by forging a technology collaboration to develop AI inference solutions, particularly for the domestic industrial, security, and logistics sectors.

This partnership was marked by the signing of a memorandum of understanding (MoU) during the Gitex Asia 2026 ceremony in Singapore, as an initial step towards exploring more practical applications of AI across various sectors in Indonesia.

“The Asia-Pacific region is currently at a critical juncture in the development of AI inference, and Indonesia stands out as one of the main contributors to that growth,” said Co-Founder and Chief Executive Officer of Blaize, Dinakar Munagala, in a press statement on Friday (24/4/2026).

“Datacomm has a strong infrastructure foundation as well as solid enterprise relationships. They have strong ties with enterprise customers that this market needs,” Dinakar added.

He further stated that this collaboration is aimed at delivering AI solutions that can be practically applied in various sectors. “Together, we are exploring how Blaize’s programmable and energy-efficient AI platform can deliver real value in the real world, from public security, smart infrastructure, physical AI, to logistics across Indonesia,” he said.

The Empowering Indonesia Report 2025 from Indosat Ooredoo Hutchison and Twimbit indicates that sovereign AI has the potential to contribute up to $140 billion to Indonesia’s gross domestic product (GDP) by 2030, with annual economic growth reaching 6.8 percent.

Meanwhile, Indonesia’s AI sector is growing at a compound annual growth rate (CAGR) of 31 percent, the highest in Southeast Asia (Digital in Asia, 2026).

In light of these opportunities, Blaize and Datacomm are focusing their collaboration on developing Physical AI, public security, surveillance, industrial AI, and logistics.

Additionally, the partnership encompasses the development of various use cases such as video analytics, smart surveillance, enhanced physical security, and logistics optimisation in both public and enterprise sectors.

The utilisation of AI inference is also directed towards industrial automation in Indonesia, including computer vision technology and sensor-based systems.

“At Datacomm, we have spent more than three decades building trust with various enterprise customers, government agencies, and critical infrastructure operators in Indonesia,” said Wie Tjin.

“Indonesia is on the brink of a significant AI transformation, and the need for intelligent, scalable, and secure inference solutions continues to rise in every sector we serve,” he continued.

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