Indonesian Indosat and Goto Introduce Multilingual AI for Digital Growth
Indosat Ooredoo Hutchison, one of Indonesia’s largest telecommunications operators, in collaboration with tech startup Goto, has announced the launch of a large language model (LLM) featuring an impressive 70 billion parameters. This multilingual chat service aims to cater to Indonesia’s vast consumer market, which spans its diverse population spread across approximately 17,000 islands.
Building on the Foundations of Sahabat-AI
The new AI initiative builds on the foundations set by Sahabat-AI, an Indonesian large language model introduced in mid-November 2022. Indosat led the development of Sahabat-AI, which aimed to prioritize the preservation of local culture and dialects amidst the global proliferation of AI technologies, primarily dominated by models developed in the U.S. and China.
While Sahabat-AI served as an important milestone, the latest offering goes further by incorporating not just Bahasa Indonesia, the nation’s official language, but also local languages including Javanese, Balinese, and Bataknese. Javanese alone boasts approximately 70 to 80 million speakers, paralleling the number of Italian speakers globally. This linguistic diversity is crucial in a country where many residents often communicate in regional dialects rather than the national language.
Indosat’s Commitment to Sovereign AI and Data Security
“Indosat is proud to lead the development of Indonesia’s sovereign AI capabilities. Sahabat-AI is more than a model—it’s a national asset powered by collaboration and built for all Indonesians,”
Indosat’s CEO, Vikram Sinha, stated. He emphasized the importance of this initiative in a country where localized technology is vital for effective communication. Notably, all data and graphics processing unit (GPU) infrastructure utilized for this model is stored within Indonesia or on user servers, reinforcing the commitment to data sovereignty and security.
Advanced AI Infrastructure with GPU Merdeka
Indosat’s subsidiary, Lintasarta, has rolled out GPU Merdeka, a robust GPU-as-a-service platform powered by Nvidia’s H100 GPUs. This platform was introduced in late August 2023 and aims to provide scalable computing power essential for running advanced AI models like Sahabat-AI and the recent multilingual service.
Shifting from Telco to Techco: A Strategic Evolution
As part of its evolution from a traditional telecom operator to a technology company, Indosat serves nearly 100 million customers across Indonesia. This transformation mirrors trends in other Southeast Asian nations, where telecom entities like the Philippines’ Globe Telecom are diversifying into fintech and other digital services.
In a mid-May interview, Sinha disclosed that Indosat is already providing AI services to over 20 Indonesian firms, including banks and commodity companies, highlighting the growing market potential. However, specific details on the investment in Sahabat-AI remain undisclosed.
Addressing Challenges in a Tightening Economy
The advent of the Gen AI application comes at a time when the Indonesian economy faces challenges from rising living costs. Many mobile subscriptions in Indonesia are prepaid, allowing consumers to adjust spending easily. Recently reported revenue for the first quarter ending March 2025 was 13.58 trillion rupiah ($833.3 million), a decline of 1.8% compared to the same period last year.
Yet, the localized AI model could potentially tap into the underserved rural populations and offer services in languages that resonate culturally, potentially spurring greater engagement. By enhancing user experience with AI-driven tools, Indosat could encourage higher data usage, leading to increased mobile top-ups.
Future Monetization and Expansion Opportunities
Beyond improving accessibility, there are promising monetization opportunities on the horizon. Data collected from user interactions—especially in various dialects—will aid Indosat in refining its AI model. There is the potential for a future model targeted at businesses, offering a “Gen AI-as-a-service” framework, which could include premium features requiring a subscription.
Such a framework would not only cater to call centers needing efficient customer interaction tools but also open avenues for creative industry applications in Indonesia’s burgeoning digital economy.
Conclusion
As Indosat and Goto continue to innovate within the framework of ‘Sovereign AI’, their efforts minimize dependency on foreign technologies and bolster local cultural engagement. This strategic shift not only enhances Indosat’s position in the telecommunications market but also solidifies its importance as a catalyst for Indonesia’s broader digital transformation and economic resilience.
With ongoing developments in AI services, the potential for growth and adaptation across diverse sectors is significant, as the nation seeks to navigate the complexities of a rapidly evolving technological landscape.
Source: fortune