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Rabu, 21 Januari 2026

Minister of Investment and Downstream Industry: AI Drives Indonesia's Economy to Grow

Davos, 21 January 2026 — As artificial intelligence (AI) accelerates digital transformation and drives demand for computing infrastructure, Indonesia believes technological progress must go hand in hand with equitable prosperity and environmental sustainability.

In the era of accelerating artificial intelligence (AI) which has driven a surge in computing needs and digital investment, Indonesia emphasizes that technological growth needs to be balanced with equitable distribution of welfare and environmental sustainability. This message was highlighted during the Tri Hita Karana G20 Bali Global Blended Finance Alliance Dialogue – Sustainable AI: Balancing Compute Growth with Equitable Prosperity, at the Indonesia Pavilion, WEF Davos 2026.


Minister of Investment and Downstream Industry/Chairman of BKPM and CEO of Danantara Indonesia Rosan P. Roeslani explained that the rapid expansion of computing capacity presents both opportunities and challenges.


"In Indonesia, AI is not merely supporting infrastructure, but also a driver of economic growth in the future," said Rosan.


According to the McKinsey Global Institute, AI could boost global productivity by up to USD13 trillion per year by 2030, while energy use for computing is projected to double every 3–4 years if not accompanied by efficiency measures (McKinsey, 2023). Indonesia recognizes that AI presents both significant opportunities and important responsibilities. As Southeast Asia's largest digital economy, the country is committed to ensuring that technological advancement is accompanied by responsible governance, environmental sustainability, and inclusive economic growth.


"As part of our investment strategy, we continue to improve the investment climate by simplifying policies, rules, and regulations. We are committed to a long-term mutually beneficial partnership, because a healthy partnership will result in good performance and value. Not only that, improving the quality of human resources is a top priority. It is Indonesia's responsibility to create more quality jobs," added Rosan.


According to Statista, global investment in AI infrastructure, including data center, is projected to reach up to USD500 million by 2027, reflecting the rapid expansion of the global digital economy, up from USD272 million in 2024, representing growth of more than 80 percent over the past four years. This trend creates significant opportunities for countries such as Indonesia to attract high-value investment, provided it is supported by regulatory certainty and a conducive investment climate.


Indonesia is well positioned to benefit from this momentum. The digital economy has become one of the country's key growth engines. According to the Google-Temasek-Bain e-Conomy SEA Report 2025, Indonesia's digital economy is estimated to reach USD100 million by 2025, with an average annual growth above 20%. According to Boston Consulting Group (BCG) projections even place Indonesia as the largest digital market in Southeast Asia with the potential to reach USD340 billion by 2030, surpassing many countries in the region.


Rosan explained that Indonesia encourages innovative financing (blended finance) to bridge the large capital needs in the high-tech sector with the climate agenda and local capacity building. International institutions in the financial sector, including the Global Climate Fund and other global investors, see the combination of public-private funding as the key to accelerating scalable and sustainable digital infrastructure.


With adaptive policy support, Indonesia strengthens local capacity through licensing reforms and digital investment incentives, including an integrated Online Single Submission (OSS) as well as the provision of tax allowances and tax holidays for strategic technology and innovation sectors. This approach is designed to create certainty in the process and timing of investment realization amid global dynamics.


This discussion brought together a number of global stakeholders, including Craig Cogut, Chairman and CEO of Pegasus Capital Advisors as well as Fund Manager of the Green Climate Fund; Calista Redmond, Vice President Global AI Initiatives NVIDIA; Stella Li, Executive Vice President BYD; Ginny Badanes, Head of Tech for Microsoft Society; and Dr. Enki Tan, Executive Chairman of Giti Tire, with moderator Patricia Holly Purcell, Senior Adviser Sustainable Finance Hub, United Nations Development Programme (UNDP). This session was closed with closing remarks by Andreas Schaal, Director for OECD Global Relations and Co-operation as well as OECD Sherpa for the G7, G20, and APEC.


Through the theme "Endless Horizons with Indonesia", Indonesia reaffirmed its commitment that openness, policy stability, and fair governance remain the foundation for answering global challenges. In the context of rapidly evolving AI and computing, Indonesia is poised to become a constructive and long-term-oriented investment partner for the global community that wants to grow together in the ever-changing digital economy landscape.


 For further information, please contact:

Protocol and Public Relations Bureau

Ministry of Investment and Downstream Industry/BKPM

Email: humas@bkpm.go.id

HP/WhatsApp (chat only): +62 812-8334-9995

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