Heaptalk, Jakarta — Founding Partner of AC Ventures Pandu Sjahrir mentioned that Indonesia is expected to attract more foreign investors as the archipelago is estimated to require US$20 billion for AI development within two years.
“With the incoming administration looking to build sovereign AI, there is an urge to enhance regulatory frameworks and accelerate investment in local infrastructure for GenAI development. This matter prompts vital discussions on upgrading Indonesia’s energy infrastructure with renewables and sustainable financing,” added Pandu who also sits as Department Head of Economic and Financial Technology at Kadin.
He further conveyed that the number is only to build digital infrastructure, such as AI data centers, with the data center capacity required is up to 2 gigawatts. He affirmed that if the investment lands to the archipelago, more advanced digital infrastructure can be adopted to boost the economic growth by up to 8%.
AI and GenAI can potentially elevate Indonesia’s economy by transforming government agencies. With its promising growth, Indonesia’s Kadin looks forward to the country’s policymakers considering these core strategies, including:
- Establishing a national AI research and development fund
- Implementing AI education and training programs
- Incentivizing AI startups and foreign investment
“Kadin aims to achieve quick wins both from the digital side, digital finance and, of course, from the business world under the auspices of the Kadin. We must have a significant balance between human resources and digital infrastructure. This is one of the most significant problems,” Pandu said.
As a leading venture capital firm, AC Ventures closed its ACV Capital V L.P. (ACV Fund V) in the fifth managed fund worth US$210 million, which included co-investment funds. Several Limited Partners (LP) backed this AC Ventures Fund V, spanning the World Bank’s IFC and leading financial institutions in the United States, the Middle East, and North Asia. Around 50% of funds collected come from existing investors, and over 90% of funds are composed of institutional capital.
In its first close worth US$153 million in 2022, ACV Fund V has deployed the fund to numerous startups, spanning Indonesia’s EV producer startup MAKA Motors, agritech startup Koltiva, and others.
