Jakarta. Leading telecommunications provider Indosat Ooredoo Hutchison has called on Indonesia’s mining industry to accelerate the adoption of artificial intelligence (AI) to stay competitive and enhance productivity in line with global trends.

According to government data, the mining sector could contribute up to $300 billion to the national economy -- equivalent to 17 percent of the country’s GDP. Currently, mining accounts for approximately 10.5 percent of GDP.

Indosat CEO Vikram Sinha said AI-driven technological breakthroughs have the potential to dramatically increase mining output and support the government’s target of achieving 8 percent economic growth.

“This isn’t just a dream. With AI as the backbone, we can deliver a new blueprint for accelerating national growth. AI innovation can help elevate GDP growth from 5 percent to 8 percent,” Vikram said during a forum titled Indonesia AI Day for Mining Industry in Jakarta on Thursday.

Indosat’s AI operations are led by its subsidiary, Lintasarta, in collaboration with US tech giant NVIDIA. Vikram noted that Indosat has established its own AI factory in Indonesia as part of its transformation into a leading ICT company.

“As we evolve into an AI technology company, we believe the future of Indonesia’s mining industry will be fundamentally shaped by tech adoption. Through this initiative, we aim to build an intelligent, secure, and sustainable ecosystem while ensuring digital transformation promotes inclusive and equitable growth,” he said.

Vikram added that Indosat’s own internal operations have already benefited from AI. Previously, the company spent around $800 million annually on capital expenditure. With AI integration, it has reduced costs by $150 million and achieved a 6 percent increase in average revenue per user (ARPU) last year.

Global Examples of Intelligent Mining
AI is already transforming the mining sector in other countries. In China -- home to more than 3,000 operational coal mines and over 2.8 million industry workers -- AI has been deployed in partnership with Huawei to increase safety and productivity.

Trials at the Hongliulin and Xiaobaodang coal mines in Shaanxi Province saw underground worker numbers reduced by up to 40 percent, thanks to automation and intelligent systems.

These systems rely on converged IP networks that integrate 5G base stations, GPS, cameras, radars, and mining machinery with centralized control centers, enabling efficient coordination and monitoring.

Muhammad Danny Buldansyah, Indosat’s Director and Chief Business Officer, said the company offers a comprehensive technological package for mining sector AI adoption -- including robust connectivity, full AI stacks, GPUs, high-performance computing, and data storage solutions.

AI utilizes various sensors to monitor production in real time, allowing surface-based command centers to control underground activities continuously. This enhances safety and boosts productivity, Danny explained.

He stressed that the technology also reduces costs and downtime. Indosat is currently in talks with major Indonesian mining companies -- including Pama Persada Nusantara, Amman Mineral International, Vale Indonesia, and Freeport Indonesia -- about integrating AI into their operations.

Infrastructure and Government Support
While remote mining sites require advanced ICT infrastructure, Danny argued that establishing connectivity is manageable.

“If companies can bring heavy equipment to remote mining sites, then building telecommunications infrastructure in the same areas shouldn’t be a problem,” he said.

Investment Minister Rosan Roeslani also attended the event to express government support for private-sector-led AI initiatives across key industries.

“AI has become a strategic necessity to boost competitiveness -- especially in mining -- and to support the transition to greener energy. The government will issue AI adoption policies and invest in human capital development in collaboration with stakeholders,” Rosan said.

The event also featured insights from leaders such as Communication and Digital Affairs Minister Meutya Hafid, McKinsey & Company representatives, Amman Mineral CEO Rachmat Makkasau, and Tri Winarno, Director General of Minerals and Coal at the Energy and Mineral Resources Ministry.

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