Indonesia ramps up digital transformation efforts with new AI data center park

Indonesia is getting its first sovereign AI data center. A joint venture between Indosat Ooredoo Hutchison (IOD), Lintasarta and BDx Data Centers (BDx), BDx Indonesia launched an AI data center park in Indonesia.

The renewable-energy powered CGK4 AI campus is equipped with Nvidia’s AI and accelerated computing platform. “Our ongoing partnership with Indosat is a transformative step in creating Indonesia’s sovereign AI cloud while empowering the nation to be Southeast Asia’s AI hub,” said Mayank Srivastava, CEO of BDx Data Centers.

“Our interconnected Mesh of Distributed Digital Infrastructure is equipped with state-of-the-art technologies that enable Nvidia’s accelerated computing for training and inference at the edge,” he continued. “The infrastructure is ready to support digital innovations and help realise the shared vision of making Indonesia a digitally empowered nation by 2045.”

Indonesia is making a big AI push as part of its ongoing digital transformation efforts. Founder and CEO of Nvidia Jensen Huang visited the Southeast Asian country last month for Indonesia AI Day 2024.

Indonesia’s Ministry of Home Affairs’ Acting Director of National Population Data Integration at the Directorate General of Dukcapil, Mensuseno, recently explained the importance of identity verification as part of digital public infrastructure (DPI). Mensuseno highlighted that the digital ID is aligned with the World Bank’s Identification for Development (ID4D) – a key enabler for people to access better services and economic opportunities in line with the Sustainable Development Goals.

He referenced India’s Aadhaar programme and how it has onboarded more citizens to digital services and boosted the economy. In Indonesia, population data is used to provide education scholarships and cash subsidies to those in need in a transparent and accountable manner, the acting director explained. “For us, a system that is able to digitally verify a person’s identity, so that they are not excluded from development programmes, is part of DPI,” he said, as reported by GovInsider.

Mensuseno pointed to how the country’s national bank BNI has gained 2.1 million customers in three months thanks to its new mobile banking app Wondr. Among private companies, private digital bank Allo Bank gained 10 million customers in three years by leveraging Dukcapil services. “No conventional bank could get that many customers in such a short time,” he told GovInsider. Dukcapil estimated that economic savings generated from digital identity verification could reach US$1.64 billion.

As the world tilts toward AI use, Indonesia eyes the burgeoning technology as a pillar of its economic development. Deputy Minister of Communication and Digital, Nezar Patria, emphasized the importance of infrastructure development and gaining digital talent as key to the country becoming a global AI powerhouse.

The deputy minister reiterated that Indonesia is committed to becoming one of the main global powers in AI in the next five years, reported Voi. But the quality and speed of infrastructure remains a challenge, with Indonesia’s internet capacity still below the ASEAN average with speeds that have not reached 100 megabits per second. Talent acquisition is a problem for many countries, but Indonesia needs around 15 million workers with AI skills by 2030. Currently, the shortage of digital talent is estimated to be around two to four million people per year.

“This gap is expected to continue to grow, even though the growth of the digital economy is targeting Indonesia’s contribution of 40 percent of the total growth of the digital economy in Southeast Asia by 2030,” Patria said, as quoted by Voi. But the ‘AI Merdaka’ movement initiated by Lintas Arta, Indosat and Nvidia is seen as a strategic bridge.

“By mapping the availability of talent and working to close the gaps, Indonesia can accelerate the formation of a stronger digital ecosystem and be more ready to become an AI powerhouse globally,” Patria said.

Article Topics

data center  |  digital economy  |  digital ID  |  digital public infrastructure  |  Dukcapil  |  financial inclusion  |  Indonesia  |  Southeast Asia