Indonesia is forging ahead with an ambitious plan to develop its own artificial intelligence (AI) chatbot, inspired by Chinese start-up DeepSeek.
The initiative, which aims to produce an inexpensive, open-source large language model (LLM), reflects the country’s drive to establish itself as a technology powerhouse in Southeast Asia.
President-elect Prabowo Subianto’s senior economic adviser, Luhut Pandjaitan, expressed confidence in the project, which is being spearheaded by a team of local AI developers. Speaking at the Indonesia Economic Summit in Jakarta on Tuesday, he emphasized the potential benefits of the chatbot for national development.
“We have set up a team to establish our own DeepSeek. … If we don’t try, how will we know [the outcome]?” Luhut said.
The chatbot, yet to be named, is expected to support both Bahasa Indonesia and English. The project will be presented to Prabowo early next month.
Luhut described the project as a key part of Indonesia’s digital transformation, highlighting its potential to enhance efficiency across sectors. He declined to disclose the investment figure but assured that it was “not costly.”
DeepSeek, which launched its R1 chatbot last month, has gained traction as a low-cost alternative to OpenAI’s ChatGPT, raising questions about its impact on the AI industry and global chip markets.
Collaboration for AI Growth
Arsjad Rasjid, chairman of the Indonesian Chamber of Commerce and Industry, called for cooperation between the public and private sectors to accelerate AI innovation.
“If China can, why can’t Indonesia do the same? We have the human capital … Open source is all about collaboration,” Arsjad said, as quoted by The Jakarta Globe.
He noted that the government is taking the lead on AI development, with expectations that private sector players will contribute to future advancements.
Privacy and Regulation Concerns
As AI technology advances, regulatory scrutiny has increased worldwide. DeepSeek’s rapid rise has already prompted security concerns in countries such as South Korea and Australia, where the chatbot has been banned from government devices over data privacy risks.
Indonesia, which is in the process of drafting AI regulations, has not yet determined its stance on DeepSeek. However, authorities see potential in its integration within the country’s digital ecosystem.
“We continue to study global AI trends and how this technology can be optimally utilized in Indonesia,” Deputy Communications and Digital Affairs Minister Nezar Patria told reporters in Jakarta on Monday.
Southeast Asia’s AI Race
Southeast Asia’s young, tech-savvy population is driving AI adoption, with searches related to AI increasing 11-fold from 2020 to 2024, according to last year’s e-Conomy SEA report.
Communications and Digital Affairs Minister Meutya Hafid has expressed optimism about Indonesia’s role in shaping AI innovation in the region.
“The statistics show that Indonesia is not only adopting this new technology but holds the potential to lead AI innovations in Southeast Asia,” she said at a business forum last month.
The region’s AI landscape is evolving rapidly. Singapore, Thailand, and Malaysia attracted over US$30 billion in AI-related investments in the first half of last year. Meanwhile, the Philippines is nearing completion of iTanong, a local chatbot designed for Tagalog and English, and Malaysia has introduced a Malay-language LLM tailored to its cultural context.
With its push to develop a homegrown AI model, Indonesia is positioning itself as a formidable player in the region’s AI race, signaling its ambitions to compete on a global scale.
