Malaysia has made it well known that it would like international investors in AI, technology, and data centre to consider the country as their preferred investment choice over neighbouring countries. And why not, the country has all the positive qualities to support such investments, like infrastructure, affordable energy including renewable, talent and ample land.
However, while Malaysia boasts such top quality, another nation in the region has similar ambition and seek to rise to the top of the pyramid in ASEAN.
Indonesia’s, Minister of Communication and Informatics Budi Arie Setiadi in his speech has invited investors in the information, communication, and technology (ICT) sectors to make the country a destination for artificial intelligence (AI) investment.
He made this statement based on data showing that AI’s contribution to the ASEAN economy jumped from US$1 billion in 2020 to US$11 billion in 2022.
“Private investment destinations for the AI sector are still dominated by the US, China, and the UK. However, the digital sector continues to grow rapidly in the ASEAN region, with investment in the ICT sector increasing,” Setiadi said on Friday.
He also encouraged national digital technology ecosystem players to seize the opportunity to develop AI as an innovation and solution. Indonesia he noted attracted approximately US$22 billion in investment in 2023 under this sector.
The market potential is predicted to reach between US$210 billion and US$360 billion by 2030, with significant growth in e-commerce, online travel, transportation, food industries, and online media, Setiadi explained.
“The contribution of AI to the Indonesian economy in 2030 is expected to reach US$366 billion. This sector will drive Indonesia’s economic growth in the future,” he added.
“Seventy-three percent of the 700 global AI developers believe that AI will be adopted by their organizations in the next two years,” he stated.
AI is also expected to provide solutions for various sectors in developing countries, including education, health, public services, finance, and labor, he added.
