The AI Action Summit 2025 held in Paris from February 10–11, marked a shift from theoretical discussions to actionable strategies for global AI governance and innovation. Over 100 countries, alongside tech leaders, civil society, and academia, focused on advancing public interest AI to reduce fragmentation and bridge digital divides by supporting open, transparent AI development. Despite progress, challenges remain. Critics noted the summit’s declarations were largely non-binding, raising questions about enforcement. The summit also struggled with balancing innovation with safety, as debates over profit-oriented versus open-source models intensified. Critiques centered on the summit’s failure to resolve systemic inbalance in AI access, such as the Global South’s limited computing resources and dependency on Western-dominated tech infrastructures.

A key outcome was the Statement on Inclusive and Sustainable Artificial Intelligence for People and the Planet, endorsed by 60 nations including France, China, and India, which emphasized ethical frameworks, fair access, and sustainability. However, the United States and United Kingdom declined to sign the statement, citing diverging priorities and ideological disagreements. Both nations framed their abstain as efforts to protect sovereignty and industry interests, though critics warned this undermined international cooperation on ethical AI governance. This risks fragmenting global governance, geopolitical divides, and weakening enforcement of inclusivity and ethical standards. It seems the summit’s outcomes underscore the tension between innovation and regulation, with lasting implications for fair AI development and global governance. Thus, where is Indonesia should position itself?

For Indonesia, the summit’s outcomes present both opportunities and challenges. The country’s emphasis on AI for sustainable development such as leveraging AI to address climate change, healthcare inequalities, and poverty—aligns with its domestic goals, including its projected $150 billion e-commerce sector by 2030. However, the geopolitical divide between signatory nations and abstaining powers like the U.S. and U.K. may complicate Indonesia’s efforts to balance innovation with ethical governance. Without Anglo-American engagement, Indonesia risks relying on fragmented frameworks that could slow progress in bridging digital divides or accessing cutting-edge AI infrastructure. To navigate this landscape, Indonesia must strengthen its domestic and international strategies.

Domestically, advancing Indonesia’s AI ecosystem, it is essential to prioritize regulatory frameworks that foster innovation while ensuring ethics and inclusivity. First, enhancing digital literacy is crucial for global competitiveness, empowering individuals with the skills needed for the digital economy, boosting employability, and fostering innovation. This also strengthens economic growth and protects against cyber threats and misinformation, making it vital for sustainable development and societal security. Katadata Insight Center in its research in 2024 finds that more than 80 % Indonesians are familiar with AI but mostly (62%) are only in basic knowledge. In 2023, The Ministry of Communication and Information Technology (Kominfo) reports that the number of online fraud victims reached 130,000 in 2023. This alarming statistic underscores the urgent need for comprehensive measures for digital literacy in Indonesia. Second, government intervention in funding AI research must increase. Currently, Indonesia’s research funding is only about 0.2% of its GDP, significantly below the global average of 2%. This gap in investment could hinder progress in AI and technological innovation. Therefore, increasing investment in research and development is imperative for maintaining global competitiveness. Third, addressing the shortage of skilled professionals in AI is critical. Strengthening educational infrastructure is necessary to produce a workforce capable of meeting the demands of a rapidly evolving technology sector. According to the Global AI Index 2023, Indonesia ranks 46th out of 62 countries, highlighting a pressing need to enhance its digital infrastructure to effectively tackle challenges in AI development. Finally, Establishing clear, robust AI policies is crucial for fostering a conducive development environment and attracting investment. Currently, Indonesia lacks specific, binding AI regulations, as the 2020 National Artificial Intelligence Strategy (Stranas KA) serves only as a policy guide, not enforceable law.

Furthermore in international level, Indonesia could utilise it’s foreign policy to take a role within global competitive ecosystem. Wahyu Wicaksana & Probo Yakti (2025) suggests that Indonesia’s foreign policy, traditionally characterized by non-alignment and the principle of “bebas aktif” (independent and active), is undergoing a significant transformation. Recent developments indicate a shift towards a more dynamic approach. Indonesia is now diversifying its multilateral engagements beyond ASEAN, strengthening strategic partnerships with major Indo-Pacific powers, and adopting normative hedging strategies to navigate sensitive international issues. Participation in BRICS, OECD, G20, G77, South to South Cooperations, suggest that the traditional label of non-alignment is no longer adequate to describe Indonesia’s foreign policy. Instead, Indonesia is moving towards a partial multi-alignment strategy, reflecting its efforts to balance relationships with various global powers while addressing complex geopolitical challenges.

Thus, while balancing with domestic priorities, Indonesia should strategically leverage its participation in multilateral and regional organizations to advance its AI policy goals. By aligning with ASEAN, it can champion AI governance frameworks reflecting Southeast Asia’s diversity. Indonesia should push for harmonized standards, address generative AI risks, and reduce capacity gaps through regional collaboration and resource sharing. By engaging with BRICS members, Indonesia gains access to alternative AI technologies and investments, reducing dependency on Western frameworks. Collaborations, such as with China in 5G infrastructure and India in AI-driven healthcare, could accelerate Indonesia’s digital transformation, addressing challenges like food security and rural healthcare. Additionally, through the G77, Indonesia can amplify the Global South’s demand for equitable AI access, as highlighted by Foreign Minister Retno Marsudi’s advocacy for inclusive development at the 2023 G77 summit. South-South cooperation provides opportunities to share best practices, such as Brazil’s AI applications in agriculture, which Indonesia could adapt to enhance its agricultural productivity. To maximize benefits from OECD engagement, Indonesia must balance alignment with global standards and preservation of its strategic autonomy. However, Indonesia should avoid regulatory capture by ensuring OECD principles are adapted to local contexts, such as prioritizing data sovereignty and rural digital literacy.

Indonesia must leverage its multi-alignment strategy to champion fair and balance AI governance. Despite not being a primary leader in the AI ecosystem, Indonesia’s substantial internet user base and projected $366 billion AI investment contribution to GDP by 2030 underscore its potential. With nearly 80% internet penetration, Indonesia should not remain merely a market participant. Instead, it must potentialy shape AI policies that drive national development and promote global inclusivity.