Indonesia Pushes Blended Finance to Drive AI and Digital Growth

  • 23 Jan 2026 13:28 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - Indonesia’s Minister of Investment and Downstreaming, Rosan Roeslani, is championing innovative financing models to close the capital gap in high-tech sectors, particularly artificial intelligence (AI) and digital infrastructure.

Speaking at the World Economic Forum (WEF) 2026, Rosan stressed that “blended finance,” combining public and private funds, is key to unlocking Indonesia’s potential as a global digital hub.

Rosan, who also serves as Head of the Investment Coordinating Board (BKPM) and CEO of Danantara Indonesia, described the global surge in computing demand not only as a technical necessity but also as a strategic economic opportunity for developing nations.

“In Indonesia, AI is not only part of the infrastructure, but also a driver of future economic growth,” he said during the Tri Hita Karana G20 Bali Global Blended Finance Alliance Dialogue at the Indonesia Pavilion in Davos on January 21, as quoted by Antara.

He argued that the high cost of data centers and AI infrastructure requires a sophisticated financing mix to align digital expansion with climate commitments and local capacity building.

International financial institutions and global investors, he noted, increasingly view public–private synergy as the fastest route to building scalable and sustainable digital infrastructure in emerging economies.

To attract long-term investment, the Indonesian government is reinforcing its policy framework through several initiatives. Regulatory reform streamlines complex permit processes through the integrated Online Single Submission (OSS) system, reducing bureaucratic delays.

Fiscal incentives, including tax allowances and tax holidays, are being offered to companies investing in strategic technology and innovation sectors. At the same time, the government is prioritizing human capital by upskilling the workforce to meet the demands of the global high-tech industry.

“We are committed to a long-term, mutually beneficial partnership, as a healthy partnership will yield good performance and value,” Rosan said, emphasizing that policy stability is a prerequisite for attracting high-tech capital.

Beyond formal sessions, the Indonesian delegation hosted “Indonesia Night” in Davos to foster informal investment diplomacy. The event, attended by WEF Interim Co-Chair André Hoffmann and Indonesian Chamber of Commerce and Industry (Kadin) Chairman Anindya Bakrie, blended culture, music, and cuisine to underscore Indonesia’s message: the country is a stable, open, and friendly destination for global collaboration. ***

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