Indonesian telecom leader Telkom Indonesia just announced a major push into data centers, streamlining subsidiaries and expanding capacity in Batam and Cikarang to meet surging cross-border demand. This move, revealed today, positions the company to capitalize on asias-digital-growth/" title="Indonesia Amid Southeast Asia’s Digital Growth">Investment Authority Boosts Tech Investments Amid Southeast Asia’s Digital Growth">Southeast Asia’s digital growth, where the economy is projected to hit $130 billion by year-end. It matters because Indonesia is racing to build infrastructure for AI and cloud services, potentially drawing more foreign investment and boosting local tech jobs amid regional competition.

In related news, Indonesia’s sovereign wealth fund, INA, with $12.8 billion in assets, outlined plans yesterday to invest in data centers, AI-driven healthcare, and renewables. Chief Investment Officer Christopher Ganis stressed a focus on domestic priorities, avoiding unrelated overseas projects. This signals a strategic shift to strengthen Indonesia’s tech backbone, which could accelerate innovation in key sectors like fintech and green energy, helping the country compete with neighbors like Singapore and Thailand in the AI space.

Meanwhile, a report released yesterday showed Philippine startups raised $86.4 million in the first half of 2025, edging out Indonesia’s $78.5 million. This highlights a slowdown in Southeast Asian venture capital but underscores the Philippines’ rising edge, possibly pressuring Indonesian firms to seek more funding amid economic headwinds.

Philippine startups aren’t alone in the spotlight—Thailand’s AI market is gaining traction with emerging startups attracting foreign cash, as noted in recent social media buzz on X. These developments reflect a competitive landscape where Indonesia must innovate to keep pace.

What to watch next: Keep an eye on potential Telkom partnerships or INA’s first investments, which could spark mergers or funding rounds in the coming weeks. Also, monitor upcoming reports on Q3 startup funding across Southeast Asia for signs of recovery or further shifts.