Indonesia's Telecom Executive Warns of Digital Colonisation Amid AI Competition

Vikram Sinha, president director and CEO of Indosat Ooredoo Hutchison, has raised alarms about the threat of "digital colonisation" posed by proprietary artificial intelligence (AI) technologies. Speaking at the South China Morning Post's China Conference: Southeast Asia 2026 in Jakarta, Sinha emphasized that the increasing reliance on expensive, closed-source AI systems could undermine the sovereignty of middle powers like Indonesia. He advocates for the adoption of open-source AI solutions, particularly those offered by Chinese companies, which he believes respect local regulations and sovereignty.

South China Morning Post

As Southeast Asian markets, including Indonesia, become increasingly attractive for AI investment, the competition between Chinese and American tech firms intensifies. Sinha noted that while U.S. companies like OpenAI provide sovereign AI solutions, Chinese firms such as Alibaba Cloud and Huawei Technologies are promoting open-source models that can be tailored to local needs. This adaptability is particularly important for developing nations that require cost-effective solutions without compromising their digital sovereignty.

South China Morning Post

Sinha articulated that "the world is moving out of proprietary [models]," indicating a shift towards more open and accessible AI technologies. He believes that the openness of Chinese companies presents a viable alternative for countries wary of digital monopolies. This perspective aligns with a broader trend among nations seeking to enhance their digital sovereignty in the face of global tech competition.

South China Morning Post

Despite the positive outlook on Chinese open-source AI, there are concerns regarding the implications of relying on foreign technology. Critics argue that while open-source models may offer customization, they could also lead to dependencies on Chinese technology, potentially compromising national security and data privacy. The balance between leveraging foreign technology and maintaining sovereignty remains a contentious issue among policymakers in Indonesia and beyond.

South China Morning Post

While Sinha's statements highlight the advantages of Chinese open-source AI, there is a lack of comprehensive data comparing the effectiveness and security of these models against their proprietary counterparts. Additionally, the long-term implications of adopting such technologies in terms of economic and digital independence require further exploration.

South China Morning Post

• “Digital colonisation, or digital monopoly, is the biggest threat for any country.” — Vikram Sinha, President Director and CEO, Indosat Ooredoo Hutchison

South China Morning Post

• “Digital colonisation, or digital monopoly, is the biggest threat for any country. I see more openness from companies from China who want to be open-source , who want to respect [local] guard rails, which respect sovereignty.” — Vikram Sinha, President Director and CEO, Indosat Ooredoo Hutchison

South China Morning Post

As the AI landscape continues to evolve, Indonesia's approach to digital sovereignty will be critical in navigating the challenges and opportunities presented by both Chinese and American tech giants.

South China Morning Post