Indonesia is leveraging its abundant mineral resources, particularly nickel and copper, to bolster its position in the global artificial intelligence (AI) industry. Deputy Minister of Communication and Digital Affairs Nezar Patria emphasized that mineral processing should enhance the country’s digital infrastructure, making it resilient, efficient, and sustainable while also increasing domestic economic value.
Nickel and copper are fundamental to AI infrastructure, playing a crucial role in the production of batteries, electrical equipment, and systems that support data centers. Indonesia’s significant share of global nickel production, approximately 62%, positions it as a key player in the global mineral supply chain. Patria highlighted the importance of responsible processing practices, including environmental protection, traceability, and sustainable labor standards, to maximize this advantage.
Beyond mineral resources, Patria noted that Indonesia’s AI development requires investments in reliable electricity, fiber-optic networks, data centers, cooling systems, a skilled workforce, and effective governance. These elements are crucial to the country’s ambition to become a regional AI hub, contributing to the growth of its digital economy and the creation of higher-value jobs.
Indonesia’s strategy involves not only utilizing its mineral wealth but also capitalizing on its expanding technology workforce and burgeoning digital economy. By doing so, the country aims to develop domestic technological capabilities and strengthen its regional standing in the AI sector.
