Kadin Chief Highlighted Challenges, Opportunities in India’s Tech Sector

New Delhi, VIVA – The Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Anindya Bakrie, stated that India's technology sector is governed by complex and ever-evolving regulations, including those related to data protection, digital payments, and artificial intelligence (AI) governance.

"However, uncertainties surrounding frameworks such as the Digital Personal Data Protection Act and localization requirements may pose obstacles for foreign companies looking to enter the market," Bakrie said in India on Tuesday (Jan 28).

Moreover, India's tech ecosystem is highly competitive, with established domestic players, global tech giants, and startups all compete for market share.

This makes it challenging for newcomers to differentiate themselves and gain significant traction, especially in digital services and financial technology.

Despite India's significant progress in digital infrastructure, rural and semi-urban areas still face connectivity challenges.

"This limits the scalability of technology solutions that rely on consistent internet access and digital adoption in underserved regions," he stated.

Meanwhile, Bakrie provided several recommendations to enhance India's technology sector while also creating opportunities for foreign investors.

According to him, India must ensure regulatory consistency and transparency in governing data protection, AI implementation, and digital payments.

Clear compliance guidelines, such as data localization mandates, would make it easier for Indonesian companies to adapt and invest.

Establishing a dedicated regulatory sandbox for foreign tech firms could further drive innovation and reduce entry barriers.

Additionally, the Indian government could create a bilateral technology agreement with Indonesia to facilitate knowledge-sharing and investment.

Such an agreement could include collaborative AI solutions, fintech platforms, and digital infrastructure projects.

The formation of a dedicated India-Indonesia tech partnership forum could provide an ongoing platform for dialogue and address operational challenges faced by Indonesian companies.

India should also prioritize expanding connectivity and digital infrastructure in underserved regions.

This includes offering incentives for foreign firms to invest in rural digital solutions and infrastructure, such as AI applications for agriculture or rural fintech platforms.

"India could attract greater interest from Indonesian tech firms. Public-private partnerships (PPP) in these areas could accelerate digital penetration while benefiting both countries," he concluded.