Indonesia sees room for both China and US AI initiatives: Airlangga

Shanghai (ANTARA) - Indonesia is committed to advancing artificial intelligence (AI) while maintaining a balanced approach to cooperation with China and the United States, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized.

“AI is a technological product, a neutral and non-political tool,” he remarked during a press conference with Communication and Digital Affairs Deputy Minister Angga Raka Prabowo and Indonesian Ambassador to China Djauhari Oratmangun.

He made the statement in Shanghai on Friday night (July 17) after Indonesia signed a declaration establishing the China-initiated World Artificial Intelligence Cooperation Organization (WAICO) amid ongoing talks on the US-led Pax Silica initiative.

“Indonesia remains involved in what is called Pax Silica. The two schemes are not necessarily at odds because they are grounded in different orientations and priorities,” Airlangga affirmed.

The minister noted that WAICO focuses on positioning AI as a tool, while Pax Silica promotes broader digital development beyond artificial intelligence.

He added that cooperation in digital affairs forms part of the Agreement on Reciprocal Trade (ART) forged between Indonesia and the United States.

The US launched Pax Silica as its international flagship effort on AI and supply chain security, coordinated by the Department of State.

The initiative seeks to build a shared economic security framework among participating countries by promoting secure and resilient supply chains for critical minerals, energy inputs, advanced manufacturing, semiconductors, AI, and technology infrastructure.

The partnership convened its inaugural summit in Washington on December 12, 2025, leading to the signing of the Pax Silica Declaration.

Besides the initiator, Pax Silica members include Australia, Finland, India, Israel, Japan, Norway, Qatar, South Korea, Singapore, Sweden, the Philippines, the United Arab Emirates, and the United Kingdom.

Although Indonesia has yet to join the initiative, it has established a framework for digital cooperation with the United States through ART, signed on February 19, 2026.

Article 3 of the agreement stipulates that Indonesia will refrain from imposing discriminatory digital services taxes on US companies while facilitating digital trade, including through cross-border data flows and cybersecurity cooperation.

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Translator: Desca Lidya, Tegar Nurfitra

Editor: Primayanti

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