(Singapore, 16th) — According to the latest survey by Singapore's The Business Times, Indonesia is actively positioning itself as a leader in the Southeast Asian artificial intelligence (AI) sector. As digital transformation accelerates across the region, Indonesian companies are showing strong willingness to invest in AI and have a high demand for indigenous AI models.
The Business Times in late May released the “ASEAN Intelligence Report,” surveying more than 500 senior executives from the six major economies of Singapore, Malaysia, Indonesia, Thailand, the Philippines, and Vietnam.
The report classified companies into three categories based on their attitudes toward technological transformation: “Pioneers,” “Pragmatic Optimizers,” and “Cautious Traditionalists.” Among them, 45% were categorized as “Pioneers” in the AI field, 42% as “Pragmatic Optimizers,” and the remaining 13% as “Cautious Traditionalists.”
The survey found that Indonesian companies are the most forward-looking, with as many as 62% of respondents identified as “Pioneers,” ranking first among ASEAN countries. In comparison, only 36% of Singaporean companies consider themselves “Pioneers,” while 47% are categorized as “Pragmatic Optimizers.”
Accenture Asia-Pacific’s Head of AI and Data, Lutra, pointed out that this does not mean Singapore is lagging in technological development, but rather reflects that local companies have a deeper understanding of AI application, governance, and compliance requirements, especially in financial services, healthcare, and the public sector, where they behave more cautiously.
The report also points out that as multinational corporations promote the “China +1” strategy, criteria for company location selection have gradually shifted from traditional factors like labor costs and tax incentives to more comprehensive factors such as quality of infrastructure, market access, and supply chain resilience.
In ASEAN enterprises’ selection of the “most attractive growth corridors” for 2026 to 2028, the Johor-Singapore Economic Zone (JS-SEZ) ranked at the top, indicating its appeal has surpassed just the Malaysia-Singapore scope.
The survey shows that this economic zone received a 92% approval rating among Philippine companies, 90% among Malaysians, and 88% among Indonesians.
In the face of escalating US-China geopolitical competition and ongoing tariff wars, ASEAN companies are generally adopting more pragmatic risk hedging strategies.
The survey found that 41% of companies tend to deepen economic and trade relations with both China and the US at the same time as their main investment direction for the next three years; another 23% plan to gradually reduce dependence on the two major economies and shift to more neutral or regional market strategies.
Among them, Indonesian companies are the most proactive in the “dual embrace” strategy, with as many as 52% of respondents choosing to expand trade ties with the US while deepening investments in China, reflecting strong confidence in their own country’s vast market potential.
In terms of regional cooperation, multilateral free trade agreements are seen as important safeguards against geopolitical risks. 63% of ASEAN business leaders believe that regional trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are crucial to ensuring supply chain security and mitigating sudden risks.
The report notes that although Southeast Asia currently faces challenges such as inflation volatility and cyclical outflows of foreign capital, the ASEAN region is no longer merely a backup option for global supply chains, but is steadily developing into an important platform for multinational enterprises to set up regional headquarters, engage in nearshoring, and make long-term investments.
The report classified companies into three categories based on their attitudes toward technological transformation: “Pioneers,” “Pragmatic Optimizers,” and “Cautious Traditionalists.” Among them, 45% were categorized as “Pioneers” in the AI field, 42% as “Pragmatic Optimizers,” and the remaining 13% as “Cautious Traditionalists.”
The survey found that Indonesian companies are the most forward-looking, with as many as 62% of respondents identified as “Pioneers,” ranking first among ASEAN countries. In comparison, only 36% of Singaporean companies consider themselves “Pioneers,” while 47% are categorized as “Pragmatic Optimizers.”
Accenture Asia-Pacific’s Head of AI and Data, Lutra, pointed out that this does not mean Singapore is lagging in technological development, but rather reflects that local companies have a deeper understanding of AI application, governance, and compliance requirements, especially in financial services, healthcare, and the public sector, where they behave more cautiously.
The report also points out that as multinational corporations promote the “China +1” strategy, criteria for company location selection have gradually shifted from traditional factors like labor costs and tax incentives to more comprehensive factors such as quality of infrastructure, market access, and supply chain resilience.
In ASEAN enterprises’ selection of the “most attractive growth corridors” for 2026 to 2028, the Johor-Singapore Economic Zone (JS-SEZ) ranked at the top, indicating its appeal has surpassed just the Malaysia-Singapore scope.
The survey shows that this economic zone received a 92% approval rating among Philippine companies, 90% among Malaysians, and 88% among Indonesians.
In the face of escalating US-China geopolitical competition and ongoing tariff wars, ASEAN companies are generally adopting more pragmatic risk hedging strategies.
The survey found that 41% of companies tend to deepen economic and trade relations with both China and the US at the same time as their main investment direction for the next three years; another 23% plan to gradually reduce dependence on the two major economies and shift to more neutral or regional market strategies.
Among them, Indonesian companies are the most proactive in the “dual embrace” strategy, with as many as 52% of respondents choosing to expand trade ties with the US while deepening investments in China, reflecting strong confidence in their own country’s vast market potential.
In terms of regional cooperation, multilateral free trade agreements are seen as important safeguards against geopolitical risks. 63% of ASEAN business leaders believe that regional trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are crucial to ensuring supply chain security and mitigating sudden risks.
The report notes that although Southeast Asia currently faces challenges such as inflation volatility and cyclical outflows of foreign capital, the ASEAN region is no longer merely a backup option for global supply chains, but is steadily developing into an important platform for multinational enterprises to set up regional headquarters, engage in nearshoring, and make long-term investments.