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As President Prabowo Subianto\u2019s administration prioritises national self-reliance, maintaining autonomy on technology that matters for Indonesia\u2019s future\u2014including AI\u2014is essential.<\/p>\n
AI embedded in critical infrastructure affects how data is collected, processed and secured, shaping decision-making processes. Indonesia needs robust guardrails to ensure AI adoption in critical infrastructure does not constrain strategic autonomy, in line with its \u2018free and active\u2019 foreign policy, amid competition between China and the United States.<\/p>\n
Huawei has already established itself as the dominant player<\/a> in Indonesia\u2019s telecommunication infrastructure. Now, it is expanding its presence into Indonesia\u2019s artificial-intelligence ecosystem, offering extensive capabilities<\/a>. This includes hardware, 5G-advanced infrastructure, AI-driven network solutions that enhance consumer experience through Huawei-made AI agents, and AI operations centres<\/a> focused on AI-cloud infrastructure development.<\/p>\n This exposes Indonesia to considerable risks, but not for the reasons that some may think. AI systems rely heavily on vast datasets to train their algorithms effectively, especially in telecommunications, where the integration of AI and 5G enables large-scale collection<\/a> and processing of communications. In this context, Indonesia needs a comprehensive framework for AI regulation to ensure vendor selection does not embed overwhelming dependence on a single supplier for infrastructure critical to Indonesia\u2019s national security and national prosperity.<\/p>\n While Huawei has gained dominance in Indonesia\u2019s telecommunications equipment market through cost competitiveness<\/a>, its push into AI marks a significant milestone. With 5G-advanced technology, Huawei possesses a more sophisticated network capability that integrates AI, enabling the network system to self-optimise<\/a> and personalise services.<\/a> This increases cost efficiency, making Huawei even more attractive to domestic operators.<\/p>\n Major telcos, including Indosat<\/a>, Telkom Indonesia<\/a> and XL Axiata<\/a>, have entered partnerships with Huawei to develop AI-based network management and solutions<\/a>, cloud services<\/a> and 5G integration<\/a>. These demonstrate Huawei\u2019s success in becoming central to Indonesia\u2019s AI-powered digital infrastructure and captivating the interest of telcos.<\/p>\n Beyond industry, government interest in Huawei is also growing. In April, the vice-chair of one of Indonesia\u2019s national legislature bodies, the People\u2019s Consultative Assembly, visited <\/a>Huawei\u2019s headquarters in Shenzhen, seeking Huawei\u2019s support for public AI applications. In the same month, Indonesian Minister of Investment Rosan Roeslani, who is also chief executive of Indonesia\u2019s sovereign wealth fund, encouraged<\/a> the use of AI in the mining sector in an open forum<\/a> where Huawei was the major sponsor. These engagements reflect the deepening entanglement of Huawei, operators and government that is shaping the trajectory of AI ecosystem in Indonesia.<\/p>\n However, the strong adoption<\/a> of AI and growing interest in its widespread application, especially in critical sectors, poses a strategic risk in the absence of AI regulatory frameworks.<\/p>\n Currently, Indonesia\u2019s AI governance rests on two non-binding documents: the AI guidelines released in 2023 by the Ministry of Communication and Informatics; and the Financial Services Authority\u2019s ethical guidelines on responsible AI in the financial technology industry, also issued in 2023. Neither provides enforceable oversight for AI in critical infrastructure.<\/p>\n Huawei\u2019s potential end-to-end dominance means that Indonesia\u2019s critical data could be stored, processed and managed by a foreign entity, deepening Indonesia\u2019s dependence on the company. This adds to existing system vulnerabilities to breaches and misuse, which are worsened by the deployment of AI without a robust regulatory framework. Indonesia has experienced major data breaches<\/a>, underscoring the fragility of its existing digital defences.<\/p>\n Ongoing strategic competition raises the stakes. The US-China tech rivalry continues to put pressure on third countries as they navigate their own digital landscapes. In May, for instance, Malaysia\u2019s Minister for Communications had to distance himself from publicly backing a full-stack AI initiative<\/a> with Huawei, only for the government to quickly distance itself following scrutiny from US actors.<\/p>\n To maintain autonomy, Indonesia should establish an AI regulatory framework. While Prabowo has made clear<\/a> that he wants a strong AI ecosystem to empower Indonesian youth<\/a>, institutional effort remains fragmented.<\/p>\n For instance, the Ministry of Communication and Digital Affairs<\/a> is pursuing AI regulation, while the Coordinating Ministry for Human Development and Cultural Affairs<\/a> has initiated a national taskforce for integrated AI strategy. However, coordination with the National Cyber and Crypto Agency<\/a> on the security aspects is not yet evident. This fragmented approach risks producing inconsistent or overlapping policies.<\/p>\n While a booming AI industry will boost Indonesia\u2019s digital economy, it will require the harvesting of vast amounts of data, making safety aspects more important than ever. AI regulation will need to comply with Indonesia\u2019s existing personal data protection laws to form a clear and effective legal foundation that hits the right balance between innovation and security.<\/p>\n Regulatory frameworks would be a guardrail for AI use in critical infrastructure, granting Indonesia autonomy over its AI pipeline and allowing it to shape its digital future on its own terms, not Huawei\u2019s. These trusted frameworks would ideally include supply chain transparency requiring AI deployers to declare system origins, and requiring providers to disclose a system\u2019s data, design and risks.<\/p>\n Indonesia\u2019s development of AI guardrails could set a precedent for maintaining strategic AI autonomy in the future\u2014whether in critical infrastructure or in large language models to align with Indonesia\u2019s national interests. This will provide Indonesia with the resilience needed to operate with independence amid sharpening great-power competition in the global tech landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"As President Prabowo Subianto\u2019s administration prioritises national self-reliance, maintaining autonomy on technology that matters for Indonesia\u2019s future\u2014including AI\u2014is…\n","protected":false},"author":2,"featured_media":71976,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":{"0":"post-71975","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-au","12":"tag-australia","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/71975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=71975"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/71975\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/71976"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=71975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=71975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=71975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}