Indonesia Ready For $200 Million AI Centre
As artificial intelligence (AI) takes over more business development, countries’ talents must have the skills to match industry needs. Hence, the Indonesian government has agreed to build a new AI centre in one of its cities, with Nvidia, one of the world’s leading semiconductor producers for AI, and Indosat Ooredoo Hutchison, a telecom provider, taking the lead.
Indonesia’s Communication Minister Budi Arie Setiadi, in his statement on 4 April 2024, said the AI centre will be worth $200 million and that Surakarta city has been chosen as its location.
Setiadi stated that the artificial intelligence centre would house a human resource centre or a telecommunications infrastructure.
Construction to Commence Shortly
The new AI centre will begin construction in 2024. Surakarta is a city in the Central Java region, and the Indonesian government had chosen it due to its readiness in terms of 5G infrastructure and human resources.
In a statement released Friday, Indosat expressed its unwavering commitment to spearheading artificial intelligence research in Indonesia. The company’s key objective is to establish a centre of excellence in Surakarta closely associated with artificial intelligence. This partnership is expected to boost the technological infrastructure in Indonesia significantly.
Nvidia signed a memorandum of understanding with the Indonesian government in January 2022. The MoU pledged to train a pool of Indonesians in AI skills. The targeted talent development was up to 20,000 lecturers and university students trained to be AI-skilled over five years. The pact made an impact before OpenAI’s groundbreaking ChatGPT chatbot came out in November 2022 and caused a considerable AI craze.
Since the signing of the MoU in January 2022, the AI market has experienced a significant surge, nearly doubling from $134.89 billion in 2022 to $241.80 billion in 2023. This exponential growth, fueled by the increasing demand for generative AI tools, has prompted Nvidia to strategically expand its influence in Southeast Asia with its foray into Indonesia.
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