AGP Executive Report

Data-Centre Pressure: Batam residents say new data centres are worsening water shortages, though authorities blame a prolonged dry spell. Officials have told incoming operators to build desalination plants rather than draw on reservoirs. Climate & Cocoa: Research covering Indonesia, Ghana and Ecuador finds extreme rainfall can damage cocoa flowers and young pods, disrupt pollination and spread fungal disease—threatening yields and farmers’ livelihoods. Nuclear Energy: Indonesia has resources and candidate sites for nuclear power, an energy official says, but needs a task force to coordinate a national programme. Small modular reactors are under consideration for industrial zones and other high-demand users. AI Tools: Indosat’s Intelligence Suite aims to give businesses one point of access to hundreds of AI models, addressing the challenge of choosing and managing a fast-changing range of tools. Solar Projects: Indonesia’s SEDAYUSolar and China’s Yude Solar have formed a joint venture to develop projects, including for mining, data centres and industrial facilities.

Disaster Tech: Indonesia and Japan are developing mosque loudspeakers as earthquake-warning channels, with trials planned in Jakarta and other regions by 2030. Industrial Innovation: Indonesia aims to lift manufacturing productivity 18.7% by 2029 through workforce training in digital technology, automation, data analytics and cybersecurity. BRIN says too little local research reaches industry, leaving prototypes stranded before commercialization. EV Supply Chain: Four projects worth part of a US$10.2 billion investment package have begun commercial operations in Indonesia’s nickel region, including battery manufacturing for export; seven more projects are under construction. AI and Jobs: The IMF estimates AI could change about 40% of jobs worldwide, warning that young workers may lose entry-level roles that help them build experience.

Disaster Tech: A five-year trial is testing whether mosque loudspeakers can deliver earthquake alerts in remote Indonesian communities, using an existing network to reach people quickly. Digital Infrastructure: A new analysis argues Indonesia should use digital investment to build economic growth beyond Java, rather than simply adding data centres where business is already concentrated. AI & Chips: The Kura-Kura Bali Special Economic Zone is being positioned as an AI and semiconductor hub, with Tsinghua University links supporting research and industry collaboration. AI Adoption: Indonesian workers report high AI use, but businesses still need stronger systems to turn that appetite into useful tools and applications. Aviation Safety: AirNav Indonesia and Telkom University are partnering to develop AI for flight safety and aviation cybersecurity.

Research Ties: Indonesia and Egypt agreed to expand university partnerships, joint research and scholarships in medicine, engineering and science. Android Security: Google’s new verification rules are now in force in Indonesia, adding checks and delays when users install apps from outside approved channels to curb scams. Greener Cities: Bali designated six low-emission areas, including Ubud, Kuta and Sanur, to align tourism and urban planning with clean energy and lower emissions. AI & Aviation: AirNav and Telkom University are developing AI for flight safety and aviation cybersecurity. Science Heritage: Indonesia is set to receive 30,210 historical objects from the Netherlands, including the scientifically significant Dubois Collection of Homo erectus finds.

Digital Development: Indonesia has asked the Asian Development Bank for more support for human capital and digital infrastructure, while its higher-education minister urged universities to turn research into practical solutions. AI & Aviation: AirNav and Telkom University are developing AI for flight safety and aviation cybersecurity; the government is also backing seawater processing for data centers in Batam. ASEAN & AI: A declaration adopted in Bali calls for stronger copyright protection for journalism as digital platforms and AI reshape the media industry. Science & STEM: Indonesian elementary students won six gold medals at an international math and science olympiad. Climate & Geohazards: Researchers warn that falling water tables are worsening peatland fires, while Anak Krakatau’s alert level was raised after 14 eruptions in four days.

STEM Talent: Indonesian students won six gold medals at the 2026 International Mathematics and Science Olympiad, alongside 27 silver and 28 bronze. Research and Innovation: Higher Education Minister Brian Yuliarto urged universities to turn research into practical solutions and public value. AI and Media: An ASEAN forum in Bali called for stronger copyright safeguards as AI systems use journalistic work, including fair royalties and clearer rules. Cybersecurity: Ledger is investigating thefts linked to devices sold by Southeast Asian reseller CryptoBilis, listed in Indonesia; it urged buyers to pause setup and the reseller to halt shipments. Tech Infrastructure: Indonesia is exploring seawater processing for Batam data centers, while AirNav and Telkom University are developing AI for flight safety. Climate: Fires in Indonesia have sent hazardous haze across the region, renewing concerns about peatland burning as a powerful El Niño looms.

STEM Talent: Indonesian students won six gold, 27 silver and 28 bronze medals at the 2026 International Mathematics and Science Olympiad, surpassing their team’s expectations. AI and Aviation: AirNav and Telkom University are developing AI for flight safety, including aviation cybersecurity. Digital Infrastructure: Indonesia’s government is considering seawater processing for data centers in Batam, where cooling demand is a growing concern. Electric Vehicles: Suzuki’s eVitara marks the company’s move into fully electric vehicles in Indonesia; a recent test drive put its first battery EV in the spotlight. Cybersecurity: Ledger is investigating reported crypto losses tied to devices sold by Southeast Asian reseller CryptoBilis, listed in Indonesia. It has paused the reseller’s sales and advised recent buyers not to set up uninitialized devices; the cause and scale of losses remain unconfirmed. Aerospace: Indonesia and Airbus are working to strengthen the country’s aerospace ecosystem.

AI & Aviation: AirNav Indonesia and Telkom University are developing AI and cybersecurity tools for flight operations. Their NOTAM generator drafts notices in about a minute for human review; an automated air-traffic-controller scheduling system is also in development, with safety decisions remaining in human hands. Data-Center Sustainability: Indonesia is backing seawater processing to supply Batam’s data centers without squeezing local water supplies. Ten projects are planned, with one already operating. Digital Growth: Economic Affairs Minister Airlangga Hartarto named AI, semiconductors and digital talent as priorities, including building chip-design capability through cooperation with ARM. Cybersecurity & Platforms: Bitdefender selected Indonesian distributor Gema Informatika Abadi to bring its consumer security products nationwide. Meta, meanwhile, has banned TikTok and other ByteDance ads on Facebook and Instagram in Indonesia, sharpening competition for users and advertisers.

Solar Push: Indonesia’s 100-GW solar ambition is achievable, industry stakeholders say, but faster permitting, clearer procurement rules, grid upgrades and investment certainty are needed to turn potential into power plants. Oil Technology: Indonesia is seeking US supercomputing and geological-data tools to identify promising reserves as it targets crude output of 1 million barrels a day by 2030. Research in Schools: BRIN and the Social Affairs Ministry will bring locally developed clean-water and waste-processing systems to about 14 People’s Schools, and study ways to improve teaching. Fires & Peatlands: In South Sumatra, El Niño-driven fires are threatening rubber farms; local families are battling blazes as dry peat and brush fuel the spread.

Urban AI: Jakarta plans to use AI to map and monitor the redevelopment of Tanah Abang, targeting completion by 2028 while promising no evictions. Digital Finance: Igloo and DANA launched rain insurance that uses satellite data and users’ locations to trigger an automatic Rp50,000 payout when rainfall reaches 2.5mm. Clean Energy: KIS Group and Toyota Tsusho formed an Indonesian joint venture to turn palm-oil mill waste into biomethane, with commercial sales targeted for 2027. Industrial Tech: Prabowo launched 11 downstreaming projects worth US$10.2 billion in North Maluku, alongside Indonesia’s first EV battery export shipment. Online Safety: TikTok has deactivated 9 million child accounts to comply with Indonesian rules, according to the communications minister.

Child Online Safety: TikTok has deactivated 9 million underage accounts to comply with Indonesia’s child-protection rules. Meta has also removed 184,000 accounts, while Threads has yet to report compliance actions. Digital Identity: Indonesia is seeking facial-liveness technology for its national digital ID, aiming to strengthen identity checks against spoofing. Peatland Science: BRIN researcher Dony Rachmanadi says recurring fires require restoring peatland water levels, not just deploying firefighting crews. Nearly 895,000 hectares had burned by late August, according to forest monitoring data. Digital Royalties: Indonesia is convening more than 28 countries to push for clearer rules on tracking and distributing royalties as creative works earn revenue across borders. Research Partnerships: Indonesia and the Netherlands are strengthening cooperation in education and research, while the government is also promoting a national plasma ecosystem to bolster health resilience.

AI and Trust: Indonesians knowingly use AI about 10.5 times a week, but a global survey found 56% of consumers want brands to disclose when AI is involved. Accessible Technology: Indonesia is working with disability groups to add screen-reader features to national digital services, with full implementation targeted for 2028. Digital Rights: A Bali forum is tackling cross-border music royalties and fragmented data systems, as Asia-Pacific receives just 14% of global royalties. Blue Economy: Indonesia is promoting seaweed as a sustainable food and industrial resource; production reached 11.6 million tonnes in 2025. Science and Safety: Satellite observations detected volcanic ash 124 miles from Krakatau, raising questions about aviation safety models.

Indonesia Health Security: Indonesia tightened health checks at airports and seaports after a suspected plague-linked death in Russia, adding symptom monitoring, risk-based vessel checks, and SATUSEHAT Health Pass declarations. Biodiversity Under Pressure: Indonesia’s two rhino species are sliding toward extinction, with less than 50 Sumatran rhinos left and the Javan rhino also critically rare. Climate & Ecosystems: A Bali study says coral reefs at Sanur keep degrading despite restoration, pointing to governance gaps and tourism’s paradoxical role. AI Governance: Consumer trust in AI agents is low after security incidents, with only small shares comfortable with AI taking actions or running routine transactions without final approval. Stablecoins in Payments: Visa survey finds growing stablecoin interest for everyday spending and cross-border transfers across Asia Pacific, but misconceptions and trust barriers remain. Data Infrastructure: Singapore’s DayOne filed for a US IPO as it expands data centers across Asia-Pacific. El Niño Watch: Forecasts warn El Niño could intensify drought and heavy rainfall, reshaping travel patterns this winter. Indonesia Energy & Land Use: Indonesia plans to use degraded land for biofuel feedstocks to avoid new deforestation. Manufacturing Investment: Godrej Consumer Products inaugurated phase one of its Kendal plant for household insecticides, backing local production and exports.

Forest Data Crackdown: Indonesia is restricting downloads from its forest mapping tool, warning users they could face prosecution—raising fears researchers can’t track deforestation and threats to Indigenous lands. Copyright Overhaul: The DPR has started talks on updating Indonesia’s Copyright Law, with the government submitting 1,117 issue lists covering royalties, AI regulation, and protection for journalistic works. Downstreaming Push: Indonesia targets Rp3,839.9 trillion in downstreaming investment (2025–2029) to lift exports and spread growth beyond Java, with AI now being positioned as a key lever for productivity. Nuclear Ambition: Indonesia is moving toward a 7 GW nuclear power target, adding it to the national energy master plan as part of long-term energy security planning. Public Data Law: DPR approved the One Data Indonesia Bill to improve data accuracy for fair, transparent public policy. Health Security: Indonesia stepped up health surveillance at airports and seaports after a suspected plague-linked death in Russia, using SATUSEHAT Health Pass and symptom monitoring. AI + Industry: Indonesia’s AI-driven downstreaming push is also tied to rising demand for data centers and digital infrastructure. Energy Transition & Industry: Seaweed is being promoted as a base for inclusive industrialization, shifting from raw exports to higher-value processing. Tech Market Signals: Copper prices ticked up on AI/data-center demand expectations, reinforcing the materials story behind Indonesia’s infrastructure race.

Southeast Asia Tech Reset: Investors at DealStreetAsia’s Asia PE-VC Summit say the region is moving past “growth at all costs” after funding corrections, with more durable enterprise and industry-tech businesses taking shape. Indonesia Health Security: Indonesia’s Health Ministry is tightening monitoring at airports and seaports after a suspected plague-related pneumonia death in Russia, using SATUSEHAT Health Pass checks plus symptom and vector surveillance. ASEAN Power Crunch: An IEA report warns electricity security risks are widening as demand rises (5.4% yearly to 2030) and grids face tighter supply, more renewables, and higher costs from LNG/coal reliance. Digital Infrastructure: Indonesia is building the SGI domestic submarine cable system (6,870km, 25Tbit/s) to boost capacity for data centers, cloud, and AI, targeting service by end-2028. Biometrics at Airports: Idemia Public Security plans group face-biometric processing across APAC to reduce airport congestion, with trials underway. Volcano Monitoring: ESA’s EarthCARE satellite captured Anak Krakatau’s ash plume structure to improve aviation safety. Green Transition: Indonesia’s low-carbon push could create ~1.2M jobs annually, but success hinges on turning global tech shifts into local manufacturing capacity. Trade & Connectivity: Indonesia’s INA-LAC 2026 mission in Chile secured about $329M in confirmed deals and $344M in potential transactions.

AI Infrastructure & Cooling: LG Electronics won a long-term deal to supply chillers for 5GW of AI data center capacity in North America, in phases, under a contract with AIR Control Concept. Prison Reform: Indonesia is preparing rehabilitation and re-education centers to cut correctional overcapacity, targeting narcotics offenders of productive age. Stablecoins Watch: Visa says stablecoin interest in Asia Pacific is far ahead of use—46% may use them by 2031, but only 16% used them in the past year. Halal Compliance Costs: Indonesia’s mandatory halal rules from Oct 17 could raise compliance burdens for Indian exporters, risking delays and recalls if certification isn’t secured. El Niño & Wildlife: Fires linked to El Niño are threatening Bornean orangutans; experts urge long-term, community-led action beyond firefighting. Human Capital Push: Coordinating Minister Sugiono says Indonesia will accelerate education, health, disaster resilience and poverty programs, including major school renovations and STEM expansion. Finance Stability: OJK says Indonesia’s financial sector remains stable despite global tightening, but warns El Niño-driven inflation risks. Defense Expansion: Indonesia added 204 military units as Prabowo urged readiness for evolving, tech-driven warfare. Trade & Food Tech: Indonesia’s digital rupiah push and edible-oil inflation pressures sit alongside regional ag-tech trends like high-tech shrimp ponds in Vietnam.