Indonesia Expands AI and Digital Twin Technology Ecosystems

RRI.CO.ID, Jakarta – The Indonesian government continues to strengthen the artificial intelligence (AI) and digital twin technology ecosystems to accelerate the national economic transformation toward higher growth. Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that this step is crucial for enhancing global competitiveness and national productivity amid rapid technological advancements.

The statement was delivered at the 13th ICT for Smart Society (ICT4S) international conference, hosted online by the Bandung Institute of Technology on Wednesday, August 26, 2026. At this global forum, the government outlined Indonesia’s readiness to integrate data centers, AI, and semiconductors to achieve an 8% economic growth target.

This digital infrastructure development is supported by Indonesia’s digital economy Gross Merchandise Value (GMV), which has approached USD 100 billion. This massive market potential is backed by 235 million internet users and the strongest commercial momentum for AI in the Southeast Asian region.

“Globally, AI has the potential to add USD 15.7 trillion to the world economy by 2030. According to PricewaterhouseCoopers, industries most exposed to AI have recorded revenue growth of 27%. Indonesia has also seen the strongest commercial momentum for AI in ASEAN, with revenue from AI-based features growing 127% year-over-year in the first half of 2025,” he said.

The adoption of this modern technology has reached various strategic sectors, such as smart agriculture, healthcare, and monitoring of the electric vehicle battery industry. Additionally, digital twin technology is being implemented to support the smart city concept in the Capital City of Nusantara (IKN) and the modernization of the electricity infrastructure.

To support the sustainability of this ecosystem, the government is focusing on strengthening three main pillars: infrastructure, digital talent, and strategic investment. Concrete steps taken include developing data center capacity, fostering international cooperation to train thousands of engineers, and building an integrated semiconductor cluster.

“What matters most is how we transform AI, digital twins, and digital technologies into tangible benefits for productivity, competitiveness, public services, and the quality of life for our people. Let’s use this conference not only to explore what technology can do, but also to see what we can do with that technology to build a more productive, inclusive, and sustainable society,” he said.