
Indonesia targets foreign investment with new AI roadmap, official says
The move follows neighbouring Malaysia's push to establish itself as a regional hub for AI development, securing billions of dollars from global tech firms seeking to build critical infrastructure to meet growing demand for cloud and AI services.
Indonesia's AI roadmap will be the first comprehensive AI document in the country, the fourth largest in the world by population, since a smaller ethics guideline in 2023, Deputy Minister of Communications and Digital Nezar Patria told Reuters in an interview at his office on Monday.
"The roadmap will help AI developers navigate (Indonesia's market), including on infrastructure and also on computational clusters," he said, adding that it would detail AI adoption in sectors such as health and agriculture.
Nezar said the roadmap was designed to establish the country's AI ecosystem.
"This will give an idea to investors about the potential of AI use in Indonesia," he said. "We're hoping they are interested in investing their capital in Indonesia."
An April report by Boston Consulting Group said ASEAN nations were positioned for substantial AI-driven gains, with GDP contributions ranging from 2.3% to 3.1% by 2027, and Indonesia projected to see the highest impact in terms of absolute gross domestic output growth.
But despite some investments, development has been slow in Indonesia compared to other parts of the region.
Nvidia was involved with Indonesia's biggest tech company GoTo Gojek Tokopedia for a large language model service last year, and supplied its chips to the telecommunications company Indosat.
Microsoft also said last year it would invest $1.7 billion over the next few years into expanding cloud services and AI in Indonesia.
"We're opening up to all global tech companies to get into the industry of AI development in Indonesia," Nezar said.
Separately, Indonesia is also pitching foreign firms on its critical minerals, which are needed for hardware development, in order to secure a bigger share of the global semiconductor supply chain, he added.
Indonesia has offered the United States the chance to jointly invest in a critical minerals project as part of its tariff negotiations. Washington has sought to find alternative suppliers to China, which dominates the sector but in April added some rare earths to its export restriction list in retaliation for U.S. tariffs.
Damar Juniarto, an analyst from research centre PIKAT Demokrasi, which monitors AI safety in Indonesia, said the country was not ready to be an AI developer owing to a lack of infrastructure such as chips, and a lack of AI skills in the workforce.
Nezar said there remained risks of misinformation, intellectual property and data leaks. He did not detail how the roadmap would address those issues.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Gulf Today
32 minutes ago
- Gulf Today
China seeks reduction of US tariffs and tech export controls
US and Chinese officials began a second day of talks in Stockholm on Tuesday to resolve longstanding economic disputes and step back from an escalating trade war between the world's two biggest economies. The meetings may not yield immediate large breakthroughs but the two sides could agree to another 90-day extension of a tariff truce struck in mid-May. It may also pave the way for a potential meeting between US President Donald Trump and Chinese President Xi Jinping later in the year, though Trump on Tuesday denied going out of his way to seek one. The delegations met for more than five hours on Monday at Rosenbad, the Swedish prime minister's office in central Stockholm. US Treasury Secretary Scott Bessent was seen arriving at Rosenbad on Tuesday morning after a separate meeting with Swedish Prime Minister Ulf Kristersson. China's Vice Premier He Lifeng also arrived at the venue. Neither side made statements after the first day of talks. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after reaching preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the United States, and a deal with Japan. The Financial Times reported on Monday that the United States had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year. Trump pushed back against suggestions he was seeking a meeting with Xi. 'This is not correct, I am not SEEKING anything! I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest!' he wrote on Truth Social. Meanwhile, in Washington, US senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents, and Taiwan, emphasizing security and human rights, which could complicate the talks in Stockholm. Taiwan President Lai Ching-te is also set to delay an August trip his team had floated to the Trump administration that would have included stops in the United States, sources familiar with the matter told Reuters on Monday. The potential visit would have infuriated Beijing, possibly derailing the trade talks. China claims Taiwan as its own territory, a position Taiwan rejects, and denounces any show of support for Taipei from Washington. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States. Among broader economic issues, Washington complains that China's state-led, export-driven model is flooding world markets with cheap goods, while Beijing says US national security export controls on tech goods seek to stunt Chinese growth. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption − a decades-long goal for US policymakers. Analysts say the U.S.-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. China stocks ended higher on Tuesday as a new round of Sino-US trade talks continued, while the Hong Kong benchmark declined with some investors booking profits near the month-end. China's blue-chip CSI300 Index and the Shanghai Composite Index reversed morning session's losses, closing up 0.39 per cent and 0.33 per cent, respectively. Hong Kong benchmark Hang Seng dropped 0.34 per cent, while Hang Seng Tech fell 0.35 per cent. Market sentiment cooled slightly as investors awaited details from the ongoing US-China trade talks that started on Monday in Stockholm. China faces an August 12 deadline to reach a durable tariff agreement; both China and US are expected to push for an extension of the trade truce. 'A truce extension would calm markets... a confrontational tone or vague outcomes could reignite fears of renewed tariffs down the line, resulting in a risk-off sentiment,' Charu Chanana, Saxo chief investment strategist, said in a note on Tuesday. Reuters


Zawya
3 hours ago
- Zawya
Abu Dhabi expands operation of autonomous taxis to Al Reem, Al Maryah Islands
ABU DHABI - As part of the Smart and Autonomous Systems Council's (SASC) strategy, the Integrated Transport Centre (Abu Dhabi Mobility ), an affiliate of the Department of Municipalities and Transport (DMT), has announced the expansion of autonomous taxi services to include Al Reem and Al Maryah Islands, in collaboration with WeRide, a global leader in autonomous driving technology, as well as Uber and Tawasul Transport as the local operator of the project. The initiative supports Abu Dhabi's ambition to build an AI-powered mobility ecosystem, reinforcing its position as a regional hub for smart and sustainable transport. The expansion aligns with the emirate's smart transport strategy, which aims to make 25 percent of all trips rely on smart mobility by 2040. With this latest addition, autonomous taxis now cover nearly half of Abu Dhabi's core areas, further integrating AI-driven transport into the city's daily life. Al Reem and Al Maryah Islands—major residential, commercial and financial hubs—were selected due to their complex traffic patterns and high demand for reliable urban mobility. The initiative demonstrates the readiness of WeRide's technology to meet real-world traffic challenges. The expansion builds on services already operating on Yas and Saadiyat Islands, as well as connections to Zayed International Airport. Since the launch of autonomous taxis on the Uber platform in December 2024, the fleet has tripled in size. The Integrated Transport Centre is working to roll out the service to additional areas on Abu Dhabi Island, paving the way for full-scale commercial deployment. Dr Abdulla Hamad AlGhfeli, Acting Director-General of the Integrated Transport Centre, said, 'This expansion marks an important milestone in Abu Dhabi's journey towards realising its vision for a smarter and safer mobility system. We are extending the deployment of autonomous vehicles to high-density areas to provide safer and more efficient travel experiences in line with Abu Dhabi's smart transport strategy.' He added, 'We are committed to innovative and sustainable solutions that improve quality of life. By working with our strategic partners, we are accelerating progress and enhancing the transport experience for all.' Jennifer Li, Chief Financial Officer and Head of International at WeRide, said, 'Al Reem and Al Maryah Islands are dynamic, high-demand areas. This expansion allows us to showcase our technology in complex settings and accelerate the deployment of autonomous vehicles across Abu Dhabi.' Mohamad Jardaneh, Head of Autonomous Mobility, Middle East at Uber, added, 'We're pleased to bring autonomous rides to more people in Abu Dhabi. With strong engagement since launch, 2025 is the year AV technology enters the mainstream.' Abu Dhabi is the first city in the Middle East and North Africa to commercially operate autonomous vehicles. With a fleet of 44 AVs, the emirate has established itself as a regional leader in smart mobility, driven by strategic partnerships with global firms such as WeRide, Space42, Uber and Tawasul Transport. WeRide's Abu Dhabi fleet is its largest outside the US and China, underscoring the emirate's growing role as a global hub for innovation in sustainable mobility.


Khaleej Times
4 hours ago
- Khaleej Times
Microsoft's AI edge under scrutiny as OpenAI turns to rivals for cloud services
Microsoft investors head into Wednesday's earnings with one big question: is the company's artificial intelligence edge at risk as partner OpenAI turns to rivals Google, Oracle and CoreWeave for cloud services? Exclusive licensing deals and access to OpenAI's cutting-edge models have made Microsoft one of the biggest winners of the generative AI boom, fueling growth in its Azure cloud business and pushing its market value toward $4 trillion. In the April-June quarter, the tie-up is expected to have driven a 34.8% increase in Azure revenue, in line with the company's forecast and higher than the 33% rise in the previous three months, according to data from Visible Alpha. But that deal is being renegotiated as OpenAI eyes a public listing, with media reports suggesting a deadlock over how much access Microsoft will retain to ChatGPT maker's technology and its stake if OpenAI converts into a public-benefit corporation. The conversion cannot proceed without Microsoft's sign-off and is crucial for a $40 billion funding round led by Japanese conglomerate SoftBank Group, $20 billion of which is contingent on the restructuring being completed by the end of the year. OpenAI, which recently deepened its Oracle tie-up with a planned 4.5 gigawatts data center capacity, has also added Google Cloud among its suppliers for computing capacity. UBS analysts said investor views on the Microsoft–OpenAI partnership are divided, though the software giant holds an upper hand. "Microsoft's leadership earned enough credibility … such that the company will end up negotiating terms that will be in the interest of its shareholders," the analysts said. Some of that confidence is reflected in the company's stock price, which has risen by more than a fifth so far this year. In the April-June period, Microsoft's fiscal fourth quarter, the company likely benefited from a weaker dollar, stronger non-AI Azure demand and PC makers pulling forward orders for its Windows products ahead of possible U.S. tariffs. Revenue is expected to have risen 14% to $73.81 billion, according to data compiled by LSEG, its best growth in three quarters. Profit is estimated to have increased 14.2% to $25.16 billion, slightly slower than the previous quarter as operating costs rose. Capital spending will also be in focus after rival Alphabet raised its annual outlay by $10 billion last week. Microsoft has repeatedly said it remains capacity constrained on AI, and in April signaled continued growth in capex after planned spending of over $80 billion last fiscal year, though at a slower pace and on shorter-lived assets such as AI chips. Dan Morgan, senior portfolio manager at Synovus Trust who owns Microsoft shares, said the spending has been paying off. "Investors may still be underestimating the potential for Microsoft's AI business to drive durable consumption growth in the agentic AI era."