Komdigi highlights mineral downstreaming potential to support AI industry

Jakarta (ANTARA) - Deputy Minister of Communication and Digital Affairs (Wamenkomdigi) Nezar Patria has highlighted the potential of downstreaming critical minerals such as nickel and copper as a foundation for growing and supporting artificial intelligence (AI) industry in Indonesia.

Nezar, in a statement from the ministry confirmed in Jakarta on Thursday, said Indonesia’s mineral downstreaming needs to be directed towards supporting the development of resilient, efficient and sustainable digital infrastructure.

“If the world asks Indonesia to supply raw materials for the energy transition and the digital transition, Indonesia must ensure that the value chain is sustainable for both parties,” said Nezar.

Indonesia holds a strategic position in the global mineral supply chain. With a contribution of around 62 per cent to global nickel mine production, Indonesia has a significant opportunity to strengthen its role in the global technology value chain.

However, this position also carries a responsibility to ensure that mineral processing activities deliver economic benefits while safeguarding environmental and social sustainability.

“Downstreaming must mean more than simply processing minerals near mining sites. It must include improved environmental performance, stronger traceability, responsible labour practices, the use of low-carbon energy, and serious attention to waste, water and the impact on communities,” he said.

Beyond minerals, the development of data centres requires electricity supply, fibre-optic networks, land, cooling systems, semiconductors, skilled experts and responsible governance.

Therefore, AI development cannot be viewed merely as a digital agenda, but is also closely linked to energy, industrial, financing and environmental policy.

Indonesia, Deputy Minister Nezar added, has the opportunity to become a regional AI hub thanks to its strategic geographic position, growing digital economy and availability of digital talent.

However, this opportunity must be matched by infrastructure readiness and the capacity to create added value at home.

“We must turn this growth into the creation of high value-added jobs, the strengthening of domestic capabilities and sustainable economic development,” he said.