As global competition over artificial intelligence continues to intensify, Indonesia has made its position clear. Rather than choosing sides between China and the United States, Indonesia says its approach is to treat AI as a neutral technology and pursue cooperation with both countries based on their respective strengths.
Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that Indonesia’s AI strategy is driven by technology and national interests rather than geopolitical considerations. Speaking at a joint press conference in Shanghai alongside Deputy Minister of Communication and Digital Affairs Angga Raka Prabowo and Indonesian Ambassador to China and Mongolia Djauhari Oratmangun on Friday evening (July 17), Airlangga said AI should not be viewed through a political lens.
“Regarding digital matters, including AI, these are technology products that serve as tools. They are neutral and non-political in nature,” Airlangga said.
His remarks came shortly after Indonesia joined the signing of the declaration establishing the World Artificial Intelligence Cooperation Organization (WAICO), a global AI cooperation initiative led by China.
At the same time, Indonesia is also actively participating in discussions surrounding Pax Silica, a separate initiative introduced by the United States.
According to Airlangga, the two initiatives are not in conflict because they pursue different objectives.
“Indonesia is also participating in what is called Pax Silica. These are not two competing initiatives because they have different orientations and priorities. WAICO focuses purely on AI as a tool, while the United States has developed Pax Silica with a much broader ecosystem in mind, including digital development,” he explained.
He added that Indonesia intends to strengthen its digital cooperation with the United States through Pax Silica, particularly because the initiative supports broader bilateral collaboration.
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“Regarding digital matters, including AI, Indonesia want to deepen cooperation under Pax Silica, which is more bilateral in nature,” Airlangga said.
Pax Silica is an initiative launched by the U.S. Department of State that focuses on artificial intelligence and supply chain security. Its goal is to establish a new economic security framework among allies and trusted partners while promoting secure, resilient, and innovative supply chains across strategic sectors.
The initiative covers a wide range of industries, including critical minerals, energy inputs, advanced manufacturing, semiconductors, artificial intelligence, and technology infrastructure.
The first Pax Silica Summit took place in Washington on December 12, 2025, where participating countries signed the Pax Silica Declaration.
Current members include Australia, Finland, India, Israel, Japan, Norway, Qatar, South Korea, Singapore, Sweden, the Philippines, the United Arab Emirates, the United Kingdom, and the United States.
Taiwan has also endorsed the principles of the declaration through the Joint Statement on the Pax Silica Declaration and U.S.-Taiwan Economic Security Cooperation.
The U.S. Department of State is also preparing to launch a new Pax Silica Artificial Intelligence Assistance Project for Panama, as well as for Pax Silica partners that transport high-value AI supply chain products through Panama.
Beyond multilateral cooperation, Indonesia and the United States have also formalized digital collaboration through the Agreement on Reciprocal Trade, signed on February 19, 2026.
The agreement includes a dedicated chapter covering digital trade and technology cooperation. Under Article 3, Indonesia is prohibited from imposing digital services taxes that discriminate against U.S. companies.
The agreement also requires Indonesia to facilitate digital trade by ensuring cross-border data flows, avoiding discriminatory treatment toward U.S. digital products, and strengthening cooperation on cybersecurity.
In addition, Indonesia must consult with the United States before entering into any future digital agreements that could potentially affect U.S. interests.
The agreement further states that Indonesia may not require technology transfers, disclosure of source code, or the use of specific technologies as conditions for doing business, except in cases related to government procurement or official investigations.
It also prohibits the imposition of customs duties on electronic transmissions.
Taken together, Indonesia’s participation in both WAICO and Pax Silica reflects a strategy of maintaining broad international partnerships while avoiding alignment with any single geopolitical bloc. By treating artificial intelligence as a technology platform rather than a political issue, the government aims to expand international cooperation without compromising its independent foreign policy.
