AI Investors Eye Batam and Jakarta-Karawang for Industrial Development

Lippo Group owner James Riady stated that Indonesia has the opportunity to delve deeper into the AI and robotics industries. He noted that several technology companies are very interested in entering Indonesia, particularly in Batam and the Jakarta-Karawang corridor. Riady conveyed this at the Presidential Palace Complex in Jakarta on Friday, July 31. He explained that the AI and robotics sector is an example of a future industry where Indonesia is viewed positively. Technology companies are attracted to Indonesia due to its sufficient energy supply and robust global fiber optic connectivity. "Technology companies are very positive about Indonesia. On average, they want to enter Indonesia, especially in Batam and also on the Jakarta-Karawang line," said James. AI, or artificial intelligence, is technology that enables machines to read data, recognize patterns, and assist in decision-making. Robotics relates to the development of machines or robots to perform specific tasks. Riady also mentioned that Indonesia's foreign policy of freedom of activity provides space for the development of the technology industry. He highlighted that Indonesia can access GPU chips, which are difficult for many other countries to obtain. GPU chips are widely used for processing large amounts of data, including in AI development. This situation opens up opportunities for Indonesia to not only be an AI market but also a production base for technology. "Indonesia will not only be an AI consumer, but a producer, a technology base for at least ASEAN, but also for the entire Global South," he stated. However, Riady also addressed the major challenges of the Fourth Industrial Revolution. He pointed out that technological advancements, particularly in AI and robotics, are leading to a decline in labor-intensive industries. Therefore, he emphasized the need for workers to be prepared to transition into new types of industries. According to Riady, President Prabowo Subianto is aware of this challenge, noting that approximately 60 million workers need retraining and education to adapt to industrial changes. Riady also touched upon the development of industrial areas in Central Java. He indicated that the government is encouraging large-scale industrial development in the region. He suggested that future industrial directions will differ, with Central Java potentially becoming a hub for labor-intensive industries, while Jakarta shifts towards more technology-intensive and investment-focused sectors.