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Will Indonesia’s decision to join China-led AI body complicate US ties?

Indonesia joined the China-led World Artificial Intelligence Cooperation Organisation (Waico) on Thursday, a move analysts warn could complicate its ties with the US by limiting access to American AI models and technology. The 29-country body, launched by Chinese President Xi Jinping, aims to promote global AI governance but may test Indonesia's recent digital trade agreement with Washington.

read1 min views3 publishedJul 21, 2026
Will Indonesia’s decision to join China-led AI body complicate US ties?
Image: Scmp (auto-discovered)

Analysts warn joining the new body could limit Indonesia’s access to US-made AI models and proprietary technology

Indonesia’s decision to join a new China-led artificial intelligence body has raised questions about how far Jakarta can push its digital ambitions without complicating its ties with Washington.

For Indonesia, membership in the World Artificial Intelligence Cooperation Organisation (Waico) offers a route to training, infrastructure and a bigger role in global AI governance as it seeks to boost technological development. But analysts said the move could also be seen as a political manoeuvre that may test a recent trade agreement with the US, which requires Jakarta to consult Washington before entering digital trade pacts that could jeopardise American interests.

On Thursday, Indonesia was among 29 countries that signed an agreement to establish Waico, an initiative promoting global governance on AI. Other founding members include Russia, Brazil, Malaysia, Laos, Cambodia and Myanmar.

“The development of artificial intelligence should not be a solo performance by any single country but rather a symphony of global cooperation,” Chinese President Xi Jinping said during Waico’s launch ceremony on Friday, which United Nations Secretary General Antonio Guterres also attended.

“We should together oppose the practice of overstretching the concept of national security in the field of artificial intelligence, and of placing one’s own security above that of other countries.”

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