Video: Chip Shortage and Rising Fibre Optic Prices, Will Internet Prices Follow Suit?

The development of digitalisation technology in the era of artificial intelligence (AI) has driven a surge in demand for semiconductor chips, making a global chip shortage crisis inevitable.

Semiconductor chips, as the hardware infrastructure needed to meet the computing requirements, scalability, and energy efficiency of modern AI systems, are currently expensive and scarce items contested worldwide.

Chairman of the Indonesian Internet Service Providers Association (APJII), Muhammad Arif Angga, stated that the trend of AI data centre development will continue, thereby influencing an increase in data needs from the internet industry in the coming years.

Therefore, the surge in AI adoption driving the need for chip supplies will grow even larger, making the chip crisis a challenge for the internet industry in providing adequate infrastructure across Indonesia. On the other hand, the rise in crude oil prices is also impacting the increase in raw material prices for fibre optics, which support internet infrastructure, becoming another challenge for the internet industry.

What is the impact of the chip shortage on the industry and services as well as internet prices in Indonesia? For more details, watch the dialogue between Shafinaz Nachiar and APJII Chairman Muhammad Arif Angga in Profit, CNBC Indonesia (Monday, 20/04/2026).