Antara News·Indonesia·Thursday, October 8, 2026 at 09:59 AM UTC

Indonesia sees critical minerals boosting domestic AI industry

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Livia Kristianti, Yashinta Difa

Jakarta (ANTARA) - Deputy Minister of Communication and Digital Affairs Nezar Patria highlighted the potential of processing critical minerals such as nickel and copper to support Indonesia’s artificial intelligence (AI) industry.

In a statement confirmed in Jakarta on Thursday, Nezar said Indonesia’s mineral processing should support the development of resilient, efficient and sustainable digital infrastructure.

“If the world asks Indonesia to provide raw materials for the energy and digital transitions, Indonesia must ensure that the value chain is sustainable for both sides,” Nezar said.

Nickel and copper are more than mining commodities. They are essential to AI infrastructure, including batteries, electrical equipment, transmission networks and systems supporting data center resilience.

Indonesia holds a strategic position in the global mineral supply chain. With about 62 percent of global mined nickel production, it has an opportunity to strengthen its role in the global technology value chain.

That position also brings a responsibility to ensure mineral processing delivers economic benefits while protecting environmental and social sustainability.

“Downstreaming must mean more than processing minerals near mine sites. It must include better environmental performance, stronger traceability, responsible labor practices, low-carbon energy and serious attention to waste, water and community impacts,” he said.

Besides minerals, data center development requires electricity supplies, fiber-optic networks, land, cooling systems, chips, skilled workers and responsible governance.

Therefore, AI development should not be viewed solely as a digital agenda but as one closely linked to energy, industrial, financing and environmental policies.

Nezar said Indonesia could become a regional AI hub because of its strategic location, growing digital economy and availability of digital talent.

However, that opportunity must be matched by infrastructure readiness and the ability to create more added value domestically.

“We must turn this growth into high-value jobs, stronger domestic capabilities and sustainable economic development,” Nezar said.

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