Jakarta, October 27, 2025 — The Tech in Asia Conference 2025, one of Southeast Asia’s premier technology gatherings organized by Tech in Asia with support from The Business Times, returned for its 14th edition at The Ritz-Carlton Jakarta, drawing more than 2,500 participants from across the region.
Carrying the theme “Defy Expectations,” this year’s conference underscored the scale, innovation, and resilience of Southeast Asia’s technology-driven ecosystem. The discussions centered around how companies can sustain growth, foster innovation, and create long-term impact through technology.
In her keynote address, Minister of Communication and Digital Affairs (Menkomdigi)Meutya Hafid emphasized Indonesia’s strong position as the largest digital economy in Southeast Asia, home to over 3,000 startups as of mid-2025. The country’s digital sector recorded a Gross Merchandise Value (GMV) of USD 90 billion (approximately IDR 1,420 trillion) in 2024 — a testament to its robust market potential.
“One of the fastest-growing sectors is Artificial Intelligence (AI), now increasingly adopted across industries, from logistics to the creative economy. This growth must be managed wisely so startups can not only address market challenges but also ensure long-term business sustainability,” said Meutya Hafid.
As part of Indonesia’s ongoing digital transformation journey, CloudRail recognizes Tech in Asia Conference 2025 as a pivotal moment reflecting the nation’s commitment to advancing sovereign AI adoption.
CloudRail is dedicated to building sovereign, efficient, and affordable AI infrastructure and solutions that empower Indonesian enterprises to develop and process AI workloads locally. Through its integrated hardware–software AI stack, CloudRail enables faster digital acceleration across multiple sectors, from logistics to government, supporting Indonesia’s vision of a resilient, independent digital economy.
KADIN and Google Indonesia Empower 50,000 MSMEs to Accelerate National Digital Transformation — Cloudrail Supports with Localized AI Solutions
Jakarta, October 15, 2025 — The Indonesian Chamber of Commerce and Industry (KADIN) has partnered with Google Indonesia to accelerate the digital transformation of micro, small, and medium enterprises (MSMEs) nationwide. The collaboration aims to onboard 50,000 MSMEs into the digital ecosystem, strengthening their competitiveness through technology, data, and content-driven engagement.
The signing ceremony at KADIN Tower, Jakarta, was attended by KADIN Chair Anindya Novyan Bakrie, KADIN Vice Chair for Communications and Digital Clarissa Tanoesoedibjo, YouTube Indonesia Country Head Suwandi Widjaja, and Google Cloud Indonesia Country Director Fanly Tanto.
Anindya Bakrie emphasized that digitalization is no longer optional but essential for business survival and growth.
“Through collaboration with Google and YouTube, we want to help MSMEs scale up, expand market reach, and become part of global value chains. Digital transformation is not just about technology, it’s about inclusion, empowerment, and sustainable economic growth,” said Anindya.
Cloudrail welcomes and supports this initiative as a pivotal step in strengthening Indonesia’s digital economy. As an AI-driven integration and cloud infrastructure provider, Cloudrail believes that empowering MSMEs goes beyond digital adoption, it requires localized intelligence and seamless automation.
With its expertise in AI integration and localized computing infrastructure, Cloudrail is developing solutions that enable MSMEs to connect platforms, process data securely within Indonesia, and harness localized AI models tailored to local business behaviors and languages. These innovations ensure that Indonesia’s digital transformation remains inclusive, sovereign, and future-ready.
Jakarta, Indonesia – The imperative for a self-reliant and human-centric artificial intelligence ecosystem was the resounding message at the 5th Artificial Intelligence Innovation Summit (AIIS) on September 16, 2025.
Hosted by the Kolaborasi Riset dan Inovasi Industri Kecerdasan Artifisial (KORIKA), the summit, held at the Hotel JS Luwansa in Jakarta, convened a powerful mix of government leaders, global AI visionaries, and industry pioneers.
The theme, “AI for Sustainable Future: Bridging Innovation and Humanity,” set the stage for a national dialogue on not just adopting AI, but shaping it to serve Indonesia’s unique developmental goals. For a nation projected to have a digital economy exceeding $130 billion by 2025, the stakes couldn’t be higher.
The summit underscored a pivotal moment in Indonesia’s technological journey. High-level discussions made it clear that the nation is moving beyond simply being a consumer of global AI technologies and is intent on becoming a producer and sovereign guardian of its own digital destiny. This ambition for “digital sovereignty” was a recurring theme, emphasizing the need for robust, local infrastructure and the development of homegrown talent.
Reference: Korika and CloudRail AI team meeting
A Call for Strategic Collaboration and a Sovereign Foundation
Distinguished speakers, including Coordinating Minister for Economic Affairs, Dr. (H.C.) Airlangga Hartarto, and Minister of Communication and Digital, Hj. Meutya Hafid, articulated a clear vision for an AI-powered Indonesia. The government’s strategy is not just about technological advancement for its own sake, but about leveraging AI to address pressing national priorities such as healthcare, food security, and bureaucratic reform.
The summit highlighted the critical role of a “quad-helix” collaboration, bringing together government, academia, industry, and the community to build a comprehensive and ethical AI framework. This collaborative approach is seen as essential for ensuring that the development of AI aligns with Indonesian values and benefits all segments of society. The presence of international AI thought leaders like Dr. Kai Fu Lee, CEO of 01.AI, signaled Indonesia’s commitment to learning from global best practices while forging its own path.
A key takeaway from the day’s discussions was the inseparable link between AI innovation and the underlying digital infrastructure. For Indonesia to truly achieve its sovereign AI ambitions, it must have control over its data and the computational resources needed to process it. This is where the concept of a sovereign cloud becomes not just a technical preference, but a strategic necessity.
The Role of Sovereign Cloud in Indonesia’s AI Trajectory
The conversations at the KORIKA AIIS 2025 have profound implications for companies like Cloudrail AI. As an Indonesian company providing high-performance computing (HPC) infrastructure locally, Cloudrail AI is at the heart of the nation’s push for digital self-reliance. The government’s emphasis on data sovereignty and the development of a local AI ecosystem directly translates into a demand for secure, low-latency, and powerful cloud infrastructure that resides within the country’s borders.
For Indonesian enterprises and government bodies looking to develop and deploy AI applications, a sovereign cloud offers several distinct advantages that were implicitly and explicitly part of the summit’s discourse:
Data Sovereignty and Security: By storing and processing data within Indonesia, organizations can ensure compliance with national data protection regulations and mitigate the risks associated with cross-border data transfers. This is particularly crucial for sensitive government, healthcare, and financial data.
Low-Latency Performance: Proximity of the data center is key for AI workloads that require real-time processing. For applications in areas like smart cities, autonomous systems, and advanced manufacturing, low latency is non-negotiable. Local HPC providers are uniquely positioned to deliver this.
Fostering Local Innovation: The availability of accessible and powerful local computing resources empowers Indonesian startups, researchers, and developers to experiment, build, and scale their AI models without relying on international providers. This is a critical component of nurturing the homegrown AI talent that the government is keen to develop.
Economic Growth and Resilience: Building a robust domestic cloud infrastructure creates high-value jobs and contributes to the national economy. It also enhances the nation’s resilience to global supply chain disruptions in digital services.
Looking Ahead: An AI-Powered, Sovereign Indonesia
The KORIKA AI Innovation Summit 2025 was more than just a conference; it was a declaration of intent. Indonesia is poised to become a significant player in the global AI landscape, but on its own terms. The path forward involves a concerted effort to build a sustainable and inclusive AI ecosystem, underpinned by a commitment to digital sovereignty.
For companies like Cloudrail AI, the summit’s themes are a powerful validation of their mission. By providing the essential secure and high-performance infrastructure on Indonesian soil, they are not just offering a service, but are becoming a foundational partner in the nation’s ambitious journey. The road to an AI-powered future for Indonesia, as charted at AIIS 2025, is one that is being built on a sovereign cloud.
Jakarta, Indonesia – In an era of rapid digital transformation, Indonesia is solidifying its position as a key player in the global digital economy. A critical piece of this strategic positioning is Government Regulation No. 71 of 2019 (GR71), a comprehensive framework that governs electronic systems and transactions. For sovereign AI and cloud companies like Cloudrail AI operating within the Indonesian market, a deep understanding of GR71 is not just a matter of compliance, but a strategic imperative for sustainable growth. This article provides a focused overview of GR71’s specifications and their implications for the tech industry in Indonesia.
The Core Framework of GR71: A Two-Pronged Approach
At its heart, GR71 distinguishes between two primary categories of Electronic System Operators (ESOs): public and private. This classification is crucial as it dictates the varying levels of regulatory requirements.
Public ESOs, which include government institutions and their designated bodies, are subject to stricter data localization rules. They are mandated to store and process their data within Indonesian territory, a move aimed at enhancing national data security and sovereignty.
Private ESOs, a broad category encompassing everything from e-commerce platforms to cloud service providers and foreign technology firms, are granted more flexibility. While they are permitted to store data offshore, this comes with the significant caveat that they must ensure accessibility for supervision and law enforcement purposes by Indonesian authorities.
Key Compliance Pillars for Private ESOs
For private technology companies, several key provisions within GR71 demand careful attention and proactive compliance strategies.
Registration with the Ministry of Communication and Informatics (MCIT): Before offering services to Indonesian users, all private ESOs are required to register with the MCIT. This registration process is a gateway to the Indonesian market, and failure to comply can result in operational disruptions.
Ensuring Government Access: A pivotal and often debated aspect of GR71 is the requirement for private ESOs to provide Indonesian authorities with access to their electronic systems and data. This is positioned as a necessary measure for supervision and law enforcement, compelling companies to have mechanisms in place to facilitate such access when lawfully requested.
Cross-Border Data Transfer Requirements: While offshore data storage is permissible for private ESOs, the transfer of data across borders is not without its hurdles. Companies must obtain explicit consent from data subjects, a process that necessitates clear communication and transparency. Furthermore, coordination with the MCIT on data transfer plans can add an administrative layer to operations.
The “Strategic Electronic Data” Designation: The Indonesian government retains the authority to classify certain data as “strategic.” ESOs handling such data are subject to more stringent controls, potentially including onshore data storage requirements, regardless of their public or private status. This highlights the importance of data classification and understanding the nature of the information being processed.
The Impact on Foreign Technology and AI Companies
The implementation of GR71 presents both challenges and opportunities for foreign technology companies, including those in the sovereign AI and cloud sector. The regulation underscores the Indonesian government’s commitment to digital sovereignty and data governance.
The compliance burdens, particularly around registration and ensuring government access, necessitate a localized approach to operations. This may involve establishing a physical presence or partnering with local entities to navigate the regulatory landscape effectively.
For companies like Cloudrail AI, which are at the forefront of sovereign AI, GR71 aligns with the global trend of nations seeking greater control over their digital assets. By designing solutions that inherently support data residency and provide transparent data governance frameworks, sovereign AI providers can position themselves as ideal partners for Indonesian enterprises and public sector organizations looking to innovate within the bounds of the nation’s regulatory framework.
Charting a Path Forward: Embracing Compliance and Innovation
Indonesia’s digital economy is on a steep growth trajectory, and GR71 is a foundational element of its regulatory architecture. For sovereign AI and cloud companies, navigating this regulation successfully requires a proactive and informed approach. By understanding the nuances of public versus private ESO classifications, adhering to registration and data access requirements, and building technologies that champion data sovereignty, companies can not only ensure compliance but also unlock the immense potential of the Indonesian market. The future of technology in Indonesia will be shaped by those who can harmonize innovation with the nation’s vision for a secure and sovereign digital future.
