Indonesia Telecom Leader Warns of Digital Colonisation as China Promotes Open Source AI
Concerns over digital sovereignty are rising in Southeast Asia as artificial intelligence becomes a core layer of economic and strategic infrastructure. In Indonesia, one of the region’s largest telecom executives has warned that countries risk falling into a new form of digital colonisation if they become dependent on expensive and tightly controlled foreign AI systems. He argues that more open approaches to AI development, including those promoted by Chinese technology firms, may offer developing markets greater long term autonomy.
The warning comes as global AI competition intensifies and major cloud and platform providers race to expand across Southeast Asia. Indonesia, with its large population and fast growing digital economy, has become a priority market for both US and Chinese technology groups seeking to anchor AI services, cloud infrastructure, and data platforms.
Vikram Sinha, president director and chief executive of Indosat Ooredoo Hutchison, said the biggest risk for middle power economies is being locked into proprietary AI stacks that are costly to run and difficult to adapt to local needs. He described this dependency as digital colonisation, where countries lose control over data, standards, and technological direction despite formal political independence.
According to Sinha, the AI industry is gradually shifting away from closed models toward more open frameworks. He said this trend creates an opportunity for countries like Indonesia to shape their own digital ecosystems rather than importing fully packaged systems designed elsewhere. In his view, openness is not just a technical preference but a strategic safeguard that allows governments and local firms to set boundaries, apply regulations, and ensure alignment with national priorities.
Chinese technology companies have increasingly positioned open source AI as a key part of their pitch in Southeast Asia. Cloud providers and telecom partners from China have emphasized flexibility, local deployment, and respect for national guardrails as they compete with US dominated platforms. Executives argue that this approach resonates in markets where concerns over data control, affordability, and long term dependence are becoming more pronounced.
At regional industry forums, representatives from companies including Huawei Indonesia and Alibaba Cloud International have highlighted strategies focused on localization. These include allowing customers to modify models, deploy systems within national borders, and integrate AI into existing domestic infrastructure rather than relying solely on external data centers.
Indonesia’s stance reflects a broader debate unfolding across emerging economies. Governments are weighing the benefits of rapid AI adoption against the risks of surrendering control over critical digital layers. Telecom operators, banks, and public institutions are increasingly vocal about the need for transparency in AI systems, predictable costs, and the ability to switch providers without major disruption.
For Indonesia, digital sovereignty is closely tied to economic development. AI is expected to underpin future growth in areas such as smart manufacturing, logistics, healthcare, and public services. Ensuring that these systems are adaptable and governed locally is seen as essential to avoiding long term structural dependence on foreign technology powers.
As competition between US and Chinese AI ecosystems deepens, Southeast Asian markets are likely to become key testing grounds for different models of digital influence. Indonesia’s call for openness signals that affordability, sovereignty, and flexibility may play as important a role as raw performance in determining which AI platforms gain lasting traction.
