Indosat teams up for major AI initiative in Indonesia

• Indosat Ooredoo Hutchison (IOH) partners with AIonOS to launch AI3 initiative for Indonesia
• The collaboration has introduced a suite of AI-led solutions, including Sovereign AI and Enterprise AI
• Partnership aims to establish Indosat as key driver of Indonesia’s AI transformation
• The move comes as Indosat reports a 13.4% increase in revenues for the first half of 2024

Indonesian telecom giant Indosat Ooredoo Hutchison (IOH) has teamed up with AI specialist AIonOS to spearhead what it hopes will be an artificial intelligence revolution that can help with the ongoing digital transformation of the world’s fourth most populated country. 

In a move that could help reshape the country’s digital services and tech sector, Indosat and AIonOS – a joint venture formed earlier this year by Indian aviation company InterGlobe and Indian investment firm Assago Group that aims to transform businesses into AI-native enterprises – are to “spearhead” the AI3 initiative (Artificial Intelligence for Indonesia by Indosat), which aims to position the archipelago nation at the forefront of AI innovation in South-east Asia. 

This collaboration aims to introduce a suite of AI-enabled solutions that leverage the operator’s early investments in AI-ready networks, as well as its substantial customer base (more than 100 million mobile users).

The partnership focuses on three key solutions: Sovereign AI; Enterprise AI Solutions; and Data and AI in a Box. These are designed to accelerate AI adoption across various sectors, from education technology to aviation, while strengthening Indonesia’s digital infrastructure and security.

Vikram Sinha, CEO of Indosat Ooredoo Hutchison, emphasised the significance of this collaboration: “This strategic partnership with AIonOS is a pivotal step in advancing Indonesia’s AI sovereignty and Indosat’s larger purpose of empowering Indonesia. By integrating cutting-edge AI solutions into our digital infrastructure, we are not only enhancing our technological capabilities but also ensuring that Indonesia remains at the forefront of global AI innovation.”

The collaboration seeks to address critical needs in Indonesia’s digital ecosystem. The Sovereign AI solution, for instance, aims to revolutionise priority industries, such as educational technology by offering integrated products and services for all ecosystem stakeholders. Meanwhile, the Enterprise AI Solutions will provide industry-specific, AI-embedded offerings tailored for domain-specific use cases, such as enhancing ancillary revenue and optimising operations in the aviation sector.

CP Gurnani, chairman of Assago Group and executive vice chairman of AIonOS, added: “The future is now, and it needs groundbreaking partnerships at scale. Indosat’s visionary approach for Indonesia, paired with AIonOS’s dedication to building AI-native solutions, will deliver innovative technologies that empower enterprises to achieve rapid and sustainable growth.”

The initiative also places a strong emphasis on data security and privacy. The Data and AI in a Box solution includes robust fraud prevention and identity solutions to create a secure digital ecosystem for Indonesia, as well as privacy-focused marketing technology solutions to enable Indonesian businesses to deliver secure and personalised digital experiences.

Rahul Bhatia, group managing director of InterGlobe Enterprises, added, “In a rapidly evolving world, it is essential for businesses to innovate continuously, focusing on developing solutions with a broader vision to transform and empower industries. Using AI effectively is crucial to this transformation, and this partnership is a strategic move in this direction.”

Indosat’s AI-driven strategy

The AI-focused initiative with AIonOS follows Indosat’s recent partnership with Nvidia, announced in March 2024. As part of that collaboration, Indosat became an Nvidia Cloud Provider Partner, deploying Nvidia’s powerful graphics processing units (GPUs) in its datacentres. 

Furthermore, Indosat Business is introducing AI-based solutions for the upstream oil and gas industry, including high-resolution seismic imaging, connected worker systems, predictive maintenance, legal contract analysis, and intelligent surveillance. 

Indosat is also set to launch Garuda, a large language model for the Indonesian language, in July 2024. Developed with Indian tech giant Tech Mahindra, Garuda aims to enable AI technologies, such as ChatGPT, to interact in Indonesian, potentially boosting AI accessibility nationwide. 

The latest push into the digital tech realm by Indosat, which is keen to present itself as an AI-native telco, comes as the telco reported a 13.4% year-on-year increase in revenues for the first half of 2024 to almost 28tn rupiah ($1.72bn) and a 17.8% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to IDR13.4tn ($823m). 

Indosat CEO Sinha noted: “The results we recorded in the first half of 2024 prove our meticulous strategy to propel the company forward. Our remarkable performance reflects our dedication to creating sustainable value for all Indosat’s stakeholders and empowering Indonesia’s digital economy. We continuously enhance our network to ensure seamless connectivity and an exceptional experience for customers across the nation. Simultaneously, we have intensified our focus on operational excellence and efficiency, enabling us to deliver strong revenue growth while further improving profitability. Additionally, our accelerated journey towards becoming an AI-native techco showcases our commitment to leveraging cutting-edge technology to drive innovation and future growth.”

- Joana Bagano, Contributing Editor, TelecomTV