JAKARTA — AI cooperation between East Java and the Guangxi Zhuang Autonomous Region, China, was discussed in a face-to-face meeting at Hotel Borobudur, Jakarta, on Saturday, June 27, 2026. The agenda brought together an East Java delegation and senior Guangxi officials to open opportunities for technology collaboration, digital investment, and the development of an artificial intelligence ecosystem.
The meeting carried weight because Guangxi, especially Nanning as the center of the China (Guangxi) Pilot Free Trade Zone or GXFTZ, is known for aggressively offering incentives to investors. East Java sees this as an entry point to accelerate a technological leap. It is not just discourse. The regional delegation wants to return home with a cooperation scheme that can be implemented immediately.
Dr. Ir. Jamhadi, MBA, who moderated and led the meeting, said the dialogue was productive. He noted that Guangxi officials showed strong interest in partnerships in the Artificial Intelligence sector. According to Jamhadi, greetings and respect from the Guangxi side were also conveyed to East Java leadership.
Nanning incentives are not free grants, but a competitive scheme
In his statement, Jamhadi also clarified information about reports of a 500-square-meter land stimulus and an injection of 5 million RMB, or around Rp 13 billion, from the Nanning government. He stressed that the facility is not a free grant automatically received by investors. The scheme runs through the Yongjiang Program, a program for international talent recruitment and innovation competitions.
“The incentive scheme in Nanning, especially in the intelligent technology field, is structural and performance-based. The stimulus funds are a form of matching fund or counterpart financing that is disbursed in stages based on progress or project milestones achieved by winning a stringent selection process,” Jamhadi said in a written statement on Sunday, June 28, 2026.
This pattern is important for Indonesian business players to understand. Many investors are tempted by large figures, then stop at the surface. In reality, incentives come with performance requirements, proof the project is moving, and the ability to run a business on the ground. If they are not ready, the funds will not be released. The workspace is there, but only for corporations that are truly operating there.
Jamhadi said the 500-square-meter facility at the China-ASEAN AI Innovation Cooperation Center is intended for corporations actively developing real operations. Local authorities, he said, are seeking Indonesian partners for computing model training, data annotation, and AI applications in education, tourism, and agricultural resilience.
East Java offers data centers, cybersecurity, and Singhasari SEZ
The East Java delegation did not arrive empty-handed. They put forward investment offers targeting sectors that are growing rapidly in Indonesia. One of the most prominent was a push for Chinese investors to enter data center development, cybersecurity, and large-scale digital business in the Special Economic Zone, or Singhasari SEZ.
The bid makes sense. Demand for data centers continues to rise, while companies and local governments increasingly rely on digital systems for public services, transactions, and information storage. If investment flows here, East Java’s technology ecosystem could move faster. The chain of benefits is long: internet service providers, software companies, digital workers, and MSMEs using cloud-based systems.
The plan is said to be finalized soon for formal submission to the Governor of East Java. That means the forum in Jakarta was not merely a courtesy meeting between delegations. There is a bureaucratic path to follow, then a stage of policy review and assessment of land readiness, infrastructure, and regulation. At this point, local governments typically weigh economic impact, regional readiness, and investment legal certainty.
East Java’s offer also extends to industrial facilities and smart building-based structures. There is also a plan for a 30-megawatt diesel power plant investment in Sumenep that has already received official approval from PLNTS, according to source material received by the newsroom. On top of that, the delegation put forward a smart farming concept on 4,500 hectares of ready-to-use land managed by local partners.
From AI labs to smart fields
Looked at more closely, the list of offers shows one thing: East Java wants to connect technology with real needs. It is not only chasing sophisticated AI laboratories on paper, but also applications that can be felt by the public. Education can use adaptive learning systems. Tourism can rely on visitor analytics. Agriculture can adopt sensors, weather prediction, and more precise planting management.
Smart farming is the interesting part. So far, many technology programs have stalled because they are separated from farmers’ needs. If the 4,500 hectares truly enter a cooperation scheme, the question is simple: how far can technology reduce costs, increase yields, and reduce the risk of crop failure? That answer will later determine whether the project comes alive or stops at a presentation.
The meeting also reflected an investment diplomacy pattern that is becoming increasingly common in the regions. Local governments are no longer waiting only for the central government. They are actively looking for partners, building networks, and mapping the sectors most ready for investment. East Java is trying to position itself as a gateway for technology cooperation between Indonesia and China, especially in AI and the digital economy.
The forum at Hotel Borobudur was attended by several figures. Among them were Prof. Dr. Ir. Marsudi Wahyu Kisworo, a BRIN Steering Council member who also leads Apvokasi; information technology expert Prof. Ir. Onno Widodo Purbo along with Nurlina Noertam Purbo from Onno Center; and Dr. Ir. Dyah Wahyu Ermawati, Head of East Java’s DPMPTSP, who attended on behalf of the Governor of East Java. From the banking sector, Nathalia Nuryani SE (Amey) was also present.
With a lineup like that, the AI cooperation has serious backing: regulators, experts, business players, and investment channels. Only one major job remains, one that often determines the fate of many similar forums — executing the agreement without losing direction. Jamhadi ended his explanation on an optimistic note. “Their main focus is building partnerships in the Artificial Intelligence sector to support progress across various industrial lines,” he said.
Brief summary
1. East Java and Guangxi Zhuang discussed a large-scale AI partnership in Jakarta, focusing on digital investment and the technology ecosystem.
2. Nanning incentives under the Yongjiang Program are not free grants, but matching funds based on selection and project milestones.
3. East Java offered opportunities in data centers, cybersecurity, smart buildings, a Sumenep diesel power plant, and 4,500 hectares of smart farming.
Quick FAQ
What is the main focus of this meeting? Artificial intelligence collaboration, digital investment, and strengthening the technology ecosystem.
Why is Nanning attractive? Because it has a structured investment incentive framework in the GXFTZ free trade zone.
What is the benefit for East Java? Opportunities for capital inflows, technology transfer, and stronger digital and smart agriculture sectors.
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