Strategic bet on China-anchored multilateral AI
Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Indonesia joined WAICO as a founding member during the body’s establishment ceremony. The founding ceremony was held in Shanghai in conjunction with the opening of the World Artificial Intelligence Conference (WAIC) 2026. He said Indonesia joined WAICO under a directive from President Prabowo Subianto for the country to play an active role in international AI governance and to ensure it does not fall behind rapid advances in AI.
WAICO is defined as an independent, China-initiated intergovernmental international organization headquartered in Shanghai. It was established within the framework of the United Nations and focuses on strengthening global AI governance, promoting a human-centric approach, and ensuring AI is developed in a safe, fair, orderly, and beneficial manner. A total of 29 countries signed the founding agreement on 16 July 2026. They include Indonesia among 29 founding member countries alongside China and a wider group of emerging and developing economies, according to official reports; the full list of individual member states has not been publicly detailed.
Hartarto framed Indonesia WAICO membership as a way to align national AI development with global technological progress while backing safe, trustworthy and ethical use of AI. He stressed that Indonesia wants AI governance that is inclusive, human-centric and not monopolised by any single power. Benefits should be shared across countries, especially the developing world. That language tracks closely with WAICO’s stated goals to uphold UN Charter principles, strengthen global AI governance, promote fair and beneficial AI, and adopt a human‑centric approach to AI development.
For Jakarta, the timing matters. Indonesia is pushing to use AI as a game-changer for its digital economy and high value-added sectors. Officials have highlighted potential applications in modern agriculture, energy transition, renewable power and healthcare. Hartarto has pointed to a significant growth trajectory for Indonesia’s digital economy and argued that deeper AI deployment can multiply that value. WAICO gives Indonesia a multilateral forum to seek technology access, standards alignment and capacity-building. It also preserves room to engage US-led AI initiatives in parallel.
Governance, capacity and hedging value for investors
WAICO’s founding agreement positions the organisation as a hub for international AI cooperation. Its mandate is to support global governance, encourage innovation and promote AI’s healthy and orderly development for all humanity. As a founding member, Indonesia gains early influence over WAICO’s institutional design, including policy direction and governance structures. Hartarto stressed that this status offers a golden opportunity for Indonesia to help shape global AI rules while keeping AI human-centric and aligned with the UN Sustainable Development Goals.
Indonesian officials are already signalling how they plan to use the platform. The Ministry of Communication and Informatics has indicated that the government will strengthen coordination across ministries. The aim is to leverage WAICO for digital transformation, AI talent development, data centre readiness and expansion of international cooperation. The broader goal is to turn multilateral AI engagement into concrete support for national economic growth. This matters especially in sectors where Indonesia seeks to move up the value chain.
At the same time, WAICO’s China anchor gives Indonesia another axis in its broader hedging strategy between US and Chinese technology ecosystems. Hartarto has recently said that Indonesia sees space to work with both the US and China on AI. Participation in WAICO complements other partnerships rather than crowding them out. For investors, Indonesia WAICO membership signals that Jakarta intends to sit at the table where rules, norms and technical cooperation frameworks for AI are negotiated, rather than accepting them passively.
Registration for additional founding members remains open until 30 July 2026, leaving a short window for other states to join the initial cohort and influence WAICO’s evolution. As more countries sign on, WAICO’s legitimacy and practical reach will become clearer. Investors should watch how Indonesia’s role within the organisation translates into regulatory alignment, standards for data and AI ethics, and specific cross-border projects — especially in digital infrastructure, energy transition technologies and sectoral AI deployments. Those outcomes will shape both risk and opportunity in Indonesia’s next phase of AI-enabled growth.
