Lagging Behind Malaysia and Singapore, Indonesia Faces Challenges in Strengthening Data Sovereignty

Jakarta, CNBC Indonesia - Strengthening digital economic infrastructure remains a key task for Indonesia to support data sovereignty and digital technology transformation in the era of Artificial Intelligence (AI). Alex Budiyanto, Chairman of the Indonesian Cloud Computing Association (ACCI), stated that data sovereignty is closely linked to Indonesia’s capability and authority to manage data end-to-end. In the context of cloud computing, data sovereignty relates to how Indonesia can have full control in managing its data ecosystem. In the age of AI, data sovereignty is essential so that data can be processed and utilised optimally to support the digital economy. However, Indonesia is currently considered to lack clarity regarding parameters and regulations on data sovereignty, meaning that if it is not strengthened, data will be exploited by foreign parties. At present, investment in giant hyperscale data centres in Indonesia still lags behind Malaysia, Singapore, and even Vietnam. If the ecosystem and regulations are not improved, Indonesia could fall behind in data infrastructure.