Jakarta. Communication and Digital Affairs Minister Meutya Hafid said on Thursday that Indonesia must actively engage in artificial intelligence (AI) development to keep pace with the world’s major powers, which are competing to dominate the technology.

She noted that China’s rapid advancements in AI are reshaping the global digital economy, highlighting the emergence of DeepSeek, an AI chatbot developed by young Chinese researchers.

Speaking at the 2025 Beritasatu Economic Outlook in Jakarta, Meutya pointed out that DeepSeek’s successful debut has challenged US dominance in AI technology, leading to a $969 billion drop in market value for top American tech companies.

DeepSeek distinguishes itself by offering a more affordable AI solution through its open-source generative AI model, making advanced AI technology accessible to a broader audience.

AI as a Key Driver of Economic Growth
Meutya stressed that AI will play a crucial role in supporting Indonesia’s digital economy and driving national economic growth.

"The current global competition is not only about military capabilities but also digital technology. Developing AI and embracing the digital economy is now an urgent priority for every nation, including Indonesia," she said.

She added that Indonesia’s digital transformation must be inclusive, empowering, and reliable, ensuring that technological advancements deliver tangible benefits to the people.

"Technology adoption must add value to society and bring real, measurable outcomes," she added.

Indonesia’s Digital Economy on the Rise
According to data from the Ministry of Communication and Digital Affairs, Indonesia attracted $21.9 billion in digital investment in 2024, making it the second-largest recipient of digital investment in ASEAN.

The country’s digital economy and online retail sector are expanding rapidly, with gross merchandise value (GMV) reaching $90 billion last year.

Additionally, Indonesia’s ranking in the World Digital Competitiveness Index has seen significant improvement, climbing from 56th place in 2019 to 43rd in 2024, reflecting the country’s growing digital capabilities and global competitiveness.