Kadin Suggests Increasing Investment In AI And Digital Infrastructure

JAKARTA - The founder of AC Ventures as well as the Head of the Indonesian Chamber of Commerce and Industry's Economics and Financial Technology Agency, Pandu Sjahrir said that the upcoming government plans to improve the regulatory framework in the development of digital infrastructure to increase Indonesia's economic value.

This was done because according to Pandu, President-elect Prabowo Subianto targets economic growth to reach 8 percent. Seeing the current economic value of 4.5-5 percent, the remaining 3 percent can be worked on with investment in digital infrastructure.

"One of the recommendations from Kadin is to facilitate investment in fields related to digital infrastructure," Pandu told the media in a statement on Wednesday, August 14 at the AC Ventures office, Jakarta.

Because according to him, adequate infrastructure will allow AI to grow rapidly in Indonesia, support economic growth, and attract more investors to the country.

Furthermore, Pandu also revealed that Indonesia needs an investment of US$20 billion in the next two years just to build digital infrastructure that supports AI technology, in the form of a data center.

According to Pandu, the required data center capacity is to reach two gigawatts, with special needs for AI which is equivalent to 8 million to 10 million megawatts.

"Therefore, we must be able to attract more investment in Indonesia, and the development of digital infrastructure is one step to achieve the 8 percent (economic growth) figure earlier," he said.

Recently, the Ministry of Communication and Information also revealed that it would simplify licensing and review of data center development regulations (data centers) in Indonesia.

With this policy, Pandu hopes to increase investment in digital transformation. Not only that, Pandu also hopes that the presence of investors to Indonesia can bring about an exchange of knowledge.

"Yes, I hope, because now we have started investing there for the last 18 months. The most important thing is how can we work together between the government and the private sector," he said.