AGP Executive Report

Digital Infrastructure: Indonesia plans to spread data centres beyond Java and Batam, with projects targeted to reach 1.3 gigawatts of capacity and eastern regions in line for expansion. Market Oversight: The Indonesia Stock Exchange is replacing broad alerts with targeted, technology-driven investigations into suspected share-price manipulation, including public notices and possible account restrictions. Aviation Engineering: FL Technics Indonesia’s Bali hangar won European safety approval to maintain aircraft for EU operators, opening work on widely used Airbus and Boeing models. Health Technology: Indonesia and Russia are exploring drug technology transfers to reduce reliance on imported medicines. Fire Monitoring: Satellites are helping track Indonesian peat fires as the country steps up wildfire response.

Data-Center Pressure: Indonesia’s AI infrastructure boom is straining local services: Batam residents report water problems and power outages as data-center projects expand, fuelling concern over their impact on communities. Digital Governance: Indonesia is urging platforms to disclose how they use AI and algorithms, while its digital agenda emphasizes connectivity, economic growth and online protection. Pharmaceutical Technology: Indonesia and Russia are exploring technology transfers and local production to reduce reliance on imported medicines, including insulin and GLP-1 drugs; talks also cover digital tools for tracking products. Materials Research: Diponegoro University researchers have turned discarded Styrofoam into electrode material for supercapacitors, linking plastic-waste reuse with energy storage.

Pharma Technology: Indonesia and Russia are exploring technology transfers and local manufacturing to reduce medicine imports, including insulin and GLP-1 drugs. Talks also cover digital tools for tracking products and strengthening oversight. AI Strategy: As the US and China build rival AI partnerships, Indonesia says it wants to work with both and choose the best systems, drawing on its nickel and copper resources. Wildfire Response: Agencies are combining hotspot data, weather reports and ground teams to target fires in Way Kambas National Park, alongside aircraft-based weather modification. Semiconductors: Indonesia is targeting a role in the chip supply chain by leveraging its critical mineral resources.

Technology Investment: Danantara will host a Jakarta forum on Oct. 26–28 to attract global funding for technology-driven industry, including AI, semiconductors, energy and digital infrastructure. The government is also pushing for data centers to be spread more evenly across Indonesia, while Nvidia is weighing a $4.5 billion AI data-center investment. Digital Jobs: The Industry Ministry is promoting animation as a job creator, saying the sector still depends on skilled human labor despite advances in AI. AI and Skills: Indonesia is seeking greater control over AI and urging platforms to disclose their AI and algorithm practices. GoTo has launched an open-source local-language AI model, while officials stress that students need to understand AI’s limits, not just use its tools. Youth STEM: A coding and robotics contest in Jakarta drew about 450 participants aged 4 to 17, with the government backing the event as a way to build digital skills. Wildfire Response: Fires threaten Sulawesi’s ancient cave paintings; satellites are helping track peat fires as Indonesia prioritizes firefighting technology.

Digital Jobs: Indonesia is looking to animation to create jobs, with Industry Minister Muhammad Sarmuji saying the labor-intensive sector still depends on human skill alongside AI and technology. Youth Tech: A national coding and robotics contest in Jakarta drew about 450 participants aged 4 to 17, as the government backs efforts to build young people’s digital skills. Online Safety & AI: Indonesia and Australia agreed to deepen cooperation on children’s online safety and platform accountability. Indonesia is also drafting an AI regulation, development roadmap and ethics code. Climate & Heritage: El Niño-fueled wildfires are threatening Sulawesi’s ancient cave art, including paintings dated as far back as 67,800 years; fires burned within 800 metres of one cave site. Biodiversity: A new report warns the Tapanuli orangutan, found only in North Sumatra, may be nearing extinction, with an estimated 658 left in the wild.

Climate & Fire: A strong El Niño is worsening drought and wildfire risks, and Berkeley Earth says 2026 could become the hottest year on record. NASA’s satellite images show the event developing rapidly. In Indonesia, fires threaten Sulawesi’s cave art, some dating back around 67,000 years, while satellite monitoring tracks smoke and hotspots. Digital Policy: Indonesia’s communications ministry is urging platforms to explain how AI and algorithms shape content, label AI-generated material and clarify moderation decisions. Biodiversity Research: BRIN scientists have identified nine mangrove species with medicinal potential.

Climate & Fire Response: With toxic haze driving student protests across Indonesia, the government is prioritizing foreign aid for firefighting technology as fires spread across the region. Research: BRIN identified nine mangrove species in Aceh with traditional medicinal uses, while Indonesia and Iran are exploring joint research, science parks and academic exchanges in areas including energy and aerospace. Digital Infrastructure: The government is pushing for data centers to be more evenly distributed, as Indonesia also sets out steps to strengthen digital sovereignty. Green Mobility: Bali has received its first electric public buses from Hyundai, supporting the island’s shift to cleaner transport. Connectivity: XLSmart reports a 17% rise in data traffic across the Yogyakarta–Solo region, where its network now includes more than 9,600 5G base stations.

Digital Sovereignty: Indonesia plans to set standards for digital infrastructure, launch government-industry pilot projects, and invest in talent and innovation, Deputy Minister Nezar Patria said at Bali Tech Week. Digital Payments: A survey including Indonesia found 76% of respondents would consider stablecoins for everyday purchases and 73% for recurring bills; one-third had already used them for payments or transfers. Space Monitoring: Authorities are investigating suspected rocket debris after large metal fragments were found near Sampit, Borneo. Researchers said the rocket’s final orbital path crossed the area. Homegrown AI: GoTo has made its open-source Indonesian-language AI model available to the public, adding to efforts to build local technology capabilities.

Defense Technology: Indonesia’s new Badr pact with Türkiye, Qatar and Pakistan calls for joint research, technology transfer and military manufacturing, aiming to build domestic production capacity. Space Safety: Authorities are investigating a car-sized suspected Chinese rocket fragment found in a plantation in Indonesia, part of a growing pattern of debris falling far from launch sites. Cybersecurity: A banking Trojan has been tailored to replace apps from eight Indonesian banks, while officials recorded 5.5 billion cyberattack attempts in 2025—underscoring pressure to strengthen data safeguards. Clean Energy: Swedish tidal-energy company Minesto will work with Indonesian partners to explore projects, including a potential site near Nusa Penida. Industrial Decarbonization: Indonesia has joined a UN-backed initiative to grow demand for low-carbon materials, using public procurement to encourage greener production.

Defence Technology: Indonesia joined Qatar, Türkiye and Pakistan in a new pact for joint defence manufacturing, research and development, and technical training. Clean Energy: Swedish tidal-power company Minesto is exploring Indonesian projects through a government-backed initiative. AI and Digital Services: Indonesian researchers proposed a multi-biometric digital ID framework for ASEAN, while GoTo unveiled an open-source AI model for local languages. NVIDIA is also weighing a major data-centre investment in Indonesia, and ITB is working with the company to build students’ AI skills. Space and Wildfire Response: BRIN traced a suspected rocket fragment found near homes to a Chinese satellite-launch rocket as Indonesia investigates the incident. Separately, BRIN and the military are preparing weather-modification technology to support wildfire response.

Local AI: GoTo has released an open-source 27-billion-parameter language model trained in Indonesian and Javanese, Sundanese, Balinese and Bataknese, giving local developers and researchers a foundation for building homegrown AI tools. Space Watch: BRIN traced a space object that crashed near homes in Sampit to a Chinese satellite-launch rocket, as Indonesia investigates the incident. AI Infrastructure: Nvidia is reportedly weighing a US$4.5 billion data-center investment in Indonesia, while the company and ITB are working to build students’ AI skills. Haze Response: Indonesian agencies are turning to dry-ice cloud seeding and other weather-modification efforts to help fight forest fires, as Malaysia and Indonesia explore sharing hotspot data and coordinating early action.

Digital Policy: Indonesia is urging platforms to make their algorithms more transparent, while Malaysia and Indonesia are also discussing stronger cooperation on online child safety. Fire Response: Authorities are tightening rules for weather modification as dry-ice seeding continues in Sumatra and Kalimantan; BRIN scientists have called for a scientific review of the haze strategy. Electric Vehicles: BYD has brought its flash-charging technology to Indonesia and plans to install chargers at 10 DENZA dealerships. The company says the system can charge a battery from 10% to 70% in five minutes. Wildlife Research: Scientists have confirmed the Bangka slow loris still survives on the Indonesian island, after rescue groups encountered more than 90 individuals.

Online Safety: Indonesia and Malaysia agreed to build inter-agency cooperation on child safety online, with a trilateral meeting involving Singapore planned for December. AI Push: GoTo has opened its Indonesian-language AI to the public, while Indonesia is training 100 people in Batam to develop secure AI apps. Greener Campuses: The government launched net-zero campus guidelines, with about 200 universities already involved. Fire Response: Authorities are using dry ice and salt to seed rain clouds in fire-hit provinces as forest blazes worsen. Rocket Debris: Indonesia is investigating a car-sized fragment found in Central Kalimantan that BRIN says may be from a Chinese rocket; no injuries or damage were reported.

AI Policy: At Bali Tech Week, Indonesia’s communications minister said AI development should follow national needs and capacity, including energy, skills and public welfare. Homegrown AI: GoTo released a free, commercially usable model trained for Bahasa Indonesia and four regional languages; the company says it outperformed its larger predecessor. Haze Response: A dry-ice trial in South Sumatra reportedly improved visibility from 650 to 2,800 metres, as Indonesia tests the method against smoke trapped by an atmospheric inversion. Digital Security: The government is training 100 Batam developers to build secure AI apps, while Indonesia is also preparing quantum security for its digital economy. New Research: Scientists found evidence that hunter-gatherers in Sulawesi used betel nut as far back as 25,000 years ago. Energy Technology: Indonesia has signed a deal with Rosatom for a floating nuclear power plant, a potential new direction for power supply in the archipelago.

AI Policy: At Bali Tech Week, Indonesia’s communications minister said the country should set its own pace for AI development, guided by local skills, infrastructure and safeguards. Digital Access: Internet penetration has reached 81.72%, but about 2,000 villages still lack 4G; the government is targeting fixed broadband speeds of 100 Mbps by 2029. Cybersecurity: Indonesia is preparing quantum-resistant encryption to protect data from future attacks, including information stolen now for later decryption. Internet Governance: ICANN’s annual meeting in Bali brings global internet leaders together to discuss online security, domain names and cooperation—the organization’s first public meeting in Indonesia. Industry and Conservation: The government set a 2026 nickel export target of US$45–50 billion through downstream processing. Meanwhile, fires in West Kalimantan have displaced and endangered orangutans: 51 have been rescued, and satellite imagery showed more than 90% of one affected conservation area had burned.

Haze Response: Indonesia deployed 2.4 tonnes of dry ice over South Sumatra in a trial to disperse haze as fires continue across the country. Separately, digital rights group SAFEnet says authorities have sought to restrict online criticism of the wildfire response. Circular Tech: PepsiCo signed a letter of intent with Bali Waste Cycle to explore expanding its packaging-recovery work in Indonesia, following a seven-month sustainability program. Digital Health: Chinese specialists shared AI-assisted traditional medicine techniques with Indonesian medical staff at a Jakarta hospital, combining clinical training with community consultations.