Indonesia has announced new initiatives in artificial intelligence, including the creation of a sovereign AI fund to drive investment and innovation, and the deployment of an AI-powered maritime surveillance system to enhance security across its sea lanes.
Sovereign AI fund to strengthen innovation
The government has outlined plans to establish a sovereign AI fund between 2027 and 2029, managed by the state wealth fund Danantara Indonesia. The fund will operate under a public-private financing model, combining state resources with private and foreign capital. Incentives will be introduced to encourage domestic AI development and attract international investment. The initiative is part of a broader national strategy to position Indonesia as a regional leader in artificial intelligence. Challenges such as limited digital infrastructure, skills shortages and concerns over data security remain significant obstacles.
AI deployed for maritime security
In parallel, Indonesia has begun implementing an AI-based maritime surveillance network to respond to rising piracy and illegal activities. The €158 million project integrates satellite, land and mobile sensors with AI analysis across 50 digital command posts. Authorities aim to increase monitoring capability in the Singapore Strait, where piracy incidents have multiplied this year. The system represents one of the largest regional applications of artificial intelligence in national defence.
Economic and strategic implications
The twin initiatives highlight Indonesia’s strategy of combining technological capacity-building with immediate security priorities. The sovereign fund is intended to fuel long-term competitiveness, while the maritime surveillance system addresses pressing operational risks. Together, they illustrate how artificial intelligence is being woven into both economic planning and defence architecture.
Positioning in Southeast Asia
As Southeast Asia experiences rapid digital transformation, Indonesia’s moves could bolster its influence in regional technology development. Success will depend on sustaining investor confidence, strengthening training and education, and ensuring responsible governance of AI applications. The decisions taken now are likely to shape Indonesia’s future role as both an economic and security actor in the region.
REFH – Newshub, 2 September 2025
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