The Indonesian Ministry of Communication and Digital (Komdigi) is exploring a collaboration with India on 5G and AI development.

This was discussed in a meeting between Indonesian Minister Meutya Hafid and Indian Ambassador Sandeep Chakravorty in Jakarta on April 28, 2025.

Minister Hafid emphasized that “AI technology must be accessible for everyone, not just a select few countries.”

This follows a memorandum of understanding (MoU) signed between Indonesia and India in January, covering AI, IoT, and digital infrastructure.

🔗 Source: Katadata

🧠 Food for thought

1️⃣ Indonesia’s non-bloc strategy creates alternative tech pathways

Indonesia’s partnership with India demonstrates its strategy to develop technology partnerships outside the dominant US-China tech rivalry.

This approach leverages Indonesia’s non-bloc foreign policy, as mentioned by Minister Meutya Hafid, as “important capital in building global strategic partnerships” 1.

Indonesia has systematically diversified its digital partnerships, engaging with multiple countries rather than becoming dependent on a single technology provider.

This tech diplomacy has practical implications. For example, while XL Axiata works with Huawei on 5G transport networks 2, the government is also exploring cooperation with India’s Tejas Networks on similar technologies.

Indonesia’s projected $146 billion digital economy by 2025 1 makes it an attractive partner for countries looking to expand their technology footprint in Southeast Asia.

This balancing act allows Indonesia to access diverse technologies while maintaining technological sovereignty, which is especially important for sensitive sectors like AI and 5G that have both economic and national security implications.

2️⃣ Economic promise of AI and 5G faces implementation hurdles

Indonesia’s AI and 5G ambitions face significant infrastructure and talent hurdles despite their enormous economic potential.

While AI is projected to contribute up to $366 billion annually to Indonesia’s GDP by 2030 3, the country faces a massive digital talent shortage requiring 9 million additional skilled workers by the same period 1.