Deputy Minister Of Industry Reveals Batam Potential To Be An AI-Based Industrial Development Area

Deputy Minister of Industry (Wamenperin) Faisol Riza revealed that the Batam area, Riau Islands, has great potential to be developed as a strategic area for the development of the artificial intelligence industry, aka Artificial Intelligence (AI) in Indonesia.

This was conveyed by the Deputy Minister of Industry in the Focused Group Discussion (FGD) themed "Potential Strengthening of the Electronics Industry in the Context of AI Industrial Development in Indonesia" in Batam, Thursday, July 10.

"Batam can be one of the AI industrial development areas in the future," said Faisol as quoted from his written statement, Friday, July 11.

Moreover, said Faisol, Batam has 19 industrial areas that are already developing and several companies operating in it have been involved in the development of electronic technology, including important components that are the foundation for AI development.

Previously, Faisol had made field visits to a number of companies in Batam. He saw the readiness of industrial estates and industrial companies in Batam to support the realization of a high-tech industrial base.

"Yesterday, we visited the telematics sector company, component suppliers for global gadget products and the location of the plan to build partner factories in Apple's supply chain that will produce AirTag. This is proof that Batam is very potential," he said.

Deputy Minister of Communication and Digital Affairs (Wamenkomdigi) Nezar Patria said Batam had long been at the forefront of the telecommunications and digital services industry. In fact, according to him, Batam's strategic infrastructure and position support its role as a leading center in national AI development.

"Batam can be the nation's flagship in producing telecommunications equipment and services. So it is important to prepare the AI industry infrastructure here," he said.

Meanwhile, Director of IT Digital PT Telkom Indonesia Faizal Rochmad Djoemadi emphasized the importance of strengthening the vertical industry, especially in the manufacturing sector in the context of Batam.

"We must remain alert to risks such as leakage of privacy data, but let's focus on the positive potential of developing this AI industry," he explained.

The FGD is an important first step in unifying cross-sectoral views, both the government, industry players and State-Owned Enterprises (BUMN) to make Batam a leading center in the transformation of AI-based industries.

Meanwhile, based on the Kearney analysis, the use of AI in Indonesia is predicted to contribute to an increase in the economy with GDP contribution of 12 percent in 2030 or 366 billion US dollars. This value is the largest nominally in the Asean Region, indicating the huge potential of Indonesia's digital economy.

This potential reflects that Indonesia has a broad market and a strong industrial base to absorb and develop AI technology.