Indonesia’s tech sector saw several key moves in the last 48 hours, with a strong emphasis on data centers and AI-driven innovation amid asias-digital-growth/" title="Amid Southeast Asia’s Digital Growth">Indonesia Investment Authority Boosts Tech Investments Amid Southeast Asia’s Digital Growth">Southeast Asia’s digital growth.

Telkom Indonesia, the country’s state-owned telecom leader, announced on September 18 plans to streamline subsidiaries and expand data center capacity in Batam and Cikarang. This targets surging cross-border demand for cloud services, potentially adding significant infrastructure to handle regional data needs. It matters because Indonesia’s digital economy is projected to hit $130 billion by year-end, and stronger data centers could position Telkom as a major player, attracting foreign investment and boosting economic resilience against global tech slumps.

Building on this, Indonesia’s sovereign wealth fund, INA, revealed on the same day it’s prioritizing investments in data centers, AI for healthcare, and renewables. Shared via Reuters and social media, this signals a strategic push to fund high-growth areas, which could inject capital into startups and help diversify the economy beyond traditional sectors. Why it stands out: With recent equity market dips in Indonesia, such funding might stabilize the tech scene and foster innovation in critical fields like green energy.

In startup news, Telkomsel launched the ninth edition of its IndonesiaNEXT program on September 18, focusing on AI skills for young talent. This initiative, discussed on platforms like X, aims to train the next generation, addressing skill gaps in a market where digital adoption is skyrocketing. It matters for long-term growth, as Indonesia’s young population could drive Southeast Asia’s tech boom if equipped with cutting-edge tools.

Financially, DSSA issued Rp1.5 trillion in bonds and sukuk on September 19 to fund data center expansions, as noted in market updates. This reflects broader confidence in tech infrastructure, potentially enabling more scalable operations.

These developments highlight Indonesia’s efforts to catch up in Southeast Asia’s competitive tech landscape, though uncertainties remain around funding execution and market volatility.

Watch for today’s AsiaStartupExpo Q3 2025, a virtual event starting at 1:00 PM SGT, where 10 startups will pitch to global investors—this could reveal emerging trends and new funding deals in the region.