Indonesia and India are broadening their digital cooperation into artificial intelligence research, technology development, and innovation, according to Indonesia’s Deputy Minister of Communication and Digital Affairs, Nezar Patria. Deputy Minister Nezar stated that the two nations are collaborating through joint research, talent development, digital infrastructure, and public-benefit technologies.
Indonesia and India Launch Expanded Digital and AI Partnership
Speaking in Jakarta, Nezar noted that India and Indonesia are not competitors chasing the same narrow path in AI. We complement each other.
He delivered the remarks during an event titled An Overview of the AI Roadmap of Indonesia
in South Jakarta. Nezar characterized India as a natural partner possessing extensive experience in developing digital public infrastructure, while pointing out that Indonesia offers a large population and strategic resources to support AI adoption.
Momentum for closer ties between Indonesia and India was further reinforced following Indian Prime Minister Narendra Modi’s state visit to Indonesia, which yielded 16 new agreements across multiple sectors. Beyond artificial intelligence, both governments have agreed to accelerate discussions on implementing a cross-border quick response (QR) code payment system to facilitate digital transactions and enhance financial cooperation, with the system set to become operational by the end of 2026. This financial initiative was announced during Prime Minister Modi’s official visit and bilateral talks with Indonesian President Prabowo Subianto at the Merdeka Palace.
Rejecting the Consumer-Only Model for Artificial Intelligence
The Indonesian government emphasizes that the country aims to move beyond serving merely as a consumer market for global artificial intelligence technologies. Nezar stressed that the administration is actively strengthening software development, computing capacity, data centers, and digital talent to foster local innovation.
Selama ini, persaingan global untuk AI telah memperlakukan negara-negara seperti Indonesia sebagai pasar. Tempat untuk menjual produk AI, bukan tempat di mana AI dibangun. Saya ingin menolak kerangka berpikir tersebut malam ini, dengan hormat namun tegas,
Nezar stated, rejecting the traditional framework that relegates developing nations to buyers rather than creators of technology.
To support this shift, Indonesia is leveraging its domestic advantages to build a robust AI ecosystem. According to the Ministry of Communication and Digital Affairs, these foundational assets include: – Substantial reserves of nickel and critical minerals – A large young population – A strategic geographical location in the Indo-Pacific region – Regulatory guidance established under Indonesia’s AI Roadmap framework
Deepening Technology, Economic, and Financial Ties
Bilateral cooperation extends to building foundational architectures such as the Indonesia Open Network, alongside efforts to integrate digital payment systems. To translate these diplomatic frameworks into concrete outcomes, Nezar urged greater collaboration through researcher exchanges, startup development, and increased research and development investment by Indian technology companies within Indonesia. He specifically called on business chambers to help identify Indian IT service leaders and AI startups ready to establish operational research and development centers in Indonesia rather than mere sales offices.
The broader economic partnership also encompasses ongoing discussions regarding the Indonesia-India Preferential Trade Agreement (PTA) and potential enhancements to the ASEAN-India Trade in Goods Agreement (AITIGA). Through these combined initiatives in digital infrastructure, financial connectivity, and artificial intelligence, both nations intend to secure tangible benefits for their citizens while advancing national strategic visions, including Indonesia’s 2045 Golden Indonesia goal.
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