SHANGHAI — Indonesia has joined a newly established international organization that could influence how artificial intelligence is developed, governed and distributed across the Global South.

Coordinating Minister for Economic Affairs Airlangga Hartarto signed the founding agreement of the World Artificial Intelligence Cooperation Organization, or WAICO, in Shanghai on July 16, 2026.

Representatives of 29 countries signed the agreement, according to China’s Foreign Ministry and Reuters. The founding group includes China, Indonesia, Kazakhstan, Pakistan, Russia, Brazil, South Africa and five Southeast Asian countries: Indonesia, Malaysia, Cambodia, Laos and Myanmar.

The initiative shows that the global contest over AI is moving beyond chips, models and computing infrastructure. Major powers are increasingly building institutions through which they can promote technical standards, regulatory principles and preferred models of international cooperation.

From an Annual Conference to a Permanent Institution

WAICO should not be confused with the World Artificial Intelligence Conference, or WAIC.

WAIC is the annual technology and policy gathering held in Shanghai. WAICO is an independent intergovernmental organization created alongside the conference and headquartered permanently in the Chinese city.

The founding agreement says the organization will operate under the purposes of the United Nations Charter and follow a people-centered approach. Its stated mission is to promote international AI cooperation and encourage development that is beneficial, safe, orderly and fair.

China’s official conference statement describes WAICO as the world’s first intergovernmental international organization dedicated specifically to AI. It is intended to help countries in the Global South strengthen their capacity in innovation, deployment and governance while remaining open to membership by all states.

Indonesia’s government describes the institution as focusing on inclusive and nondiscriminatory cooperation in the civilian application of AI.

Why Indonesia Signed Early

Indonesia’s decision to become a founding member gives it a seat during WAICO’s formative stage rather than requiring it to join after the organization’s structures and priorities have already been determined.

Airlangga said Indonesia would use the platform to help bridge the global AI divide. The objective is to ensure that developing economies are not left solely as users of foreign products or sources of data while advanced economies retain control of models, computing resources and standards.

Jakarta wants global AI governance to remain human-centered and to distribute economic and technological benefits more equally. The government also links participation in WAICO to national priorities involving digital transformation, workforce development and economic competitiveness.

Indonesia joined the organization following a directive from President Prabowo Subianto at a limited cabinet meeting on July 13. The government now plans to coordinate across ministries and agencies to connect WAICO initiatives with domestic programs.

What Indonesia Hopes to Gain

The Indonesian government has identified several potential benefits from membership.

These include technology transfer, international research partnerships, stronger AI skills, improved domestic data center readiness and greater access to technology for local businesses. Officials also expect the platform to create opportunities for micro, small and medium-sized enterprises to use AI to improve productivity and competitiveness.

Those expectations will require practical programs rather than declarations alone.

Training exchanges, joint laboratories, affordable access to computing capacity, local-language models, research funding and clear data-protection arrangements would provide measurable value. Without concrete delivery mechanisms, membership may produce diplomatic visibility without significantly improving Indonesia’s technological capabilities.

Beijing’s Open-Source Pitch

Chinese President Xi Jinping used the opening of WAIC 2026 to present China as a supporter of open-source technology and broader access to AI.

Xi argued that AI should advance shared prosperity and remain under human control. He called for international alignment on development strategies, technical standards, safety mechanisms and governance rules.

China announced that it would provide 5,000 AI training and seminar opportunities to developing countries over the next five years. It also plans to establish AI application cooperation centers with ASEAN, BRICS, the African Union, the Arab League and other regional organizations. Thirty countries are expected to receive access to China’s AI-powered meteorological warning system.

The message is designed to appeal particularly to countries concerned that the cost of chips, cloud infrastructure, proprietary models and skilled workers could leave them permanently dependent on a small group of technology powers.

A Competing Vision of Global AI Leadership

WAICO emerges amid an intensifying contest between Beijing and Washington over the international AI ecosystem.

The United States’ AI Action Plan, released in July 2025, is organized around accelerating innovation, building domestic infrastructure and leading in international diplomacy and security. It also calls for exporting packages of American hardware, models, software, applications and standards to allies and partner countries.

Washington has separately developed international initiatives such as Pax Silica, which focuses on secure supply chains for semiconductors, critical minerals and AI infrastructure. Reuters reported that 35 countries support the US-backed AI Opportunity Statement, compared with 29 founding signatories of WAICO.

China emphasizes open-source models, capacity building, sovereign equality and wider participation by developing countries. The United States places greater emphasis on private-sector innovation, trusted technology, secure supply chains and reducing regulatory barriers.

The distinction should not be exaggerated. Both countries seek to expand the international adoption of their technology ecosystems, strengthen partnerships and influence the rules under which AI will operate.

WAICO therefore represents more than a development forum. It gives China an institutional platform through which technical assistance, training, standards and diplomatic influence can be connected.

Not Every Country Is Choosing One Side

The emerging AI landscape is unlikely to divide neatly into two exclusive blocs.

Kazakhstan, for example, is listed as a participant in both WAICO and the US-supported AI Opportunity Statement. This suggests that governments may seek relationships with multiple technology powers instead of making a single geopolitical choice.

Indonesia is likely to follow a similarly flexible approach. It has extensive economic and technology relationships with China, but it also works with the United States, Japan, South Korea, the European Union and other ASEAN members.

Membership in WAICO does not automatically require Jakarta to adopt every Chinese policy position. Indonesia can use the organization to pursue access and capacity while continuing to participate in other international AI initiatives.

Maintaining that flexibility will require careful diplomacy, particularly if competing groups introduce incompatible standards for data, safety, cybersecurity or model evaluation.

Governance Details Remain Limited

WAICO’s initial public documents establish broad principles but provide limited detail about how the institution will operate in practice.

The available statements do not fully explain its voting system, financing structure, enforcement mechanisms, membership obligations or procedures for adopting standards. They also leave questions about intellectual property, cross-border data transfers, model safety assessments and access to computing infrastructure.

China has said AI systems should remain controllable and called for early-warning and emergency-response mechanisms to address serious risks.

The credibility of WAICO will depend on whether those principles become transparent procedures and whether smaller members have meaningful influence over decisions rather than serving mainly as recipients of technology.

A Chance to Shape Rules Rather Than Receive Them

For Indonesia, the central advantage of joining early is the opportunity to influence conversations before global AI arrangements become fixed.

Jakarta can advocate for affordable access to computing, support for local languages, protection of developing-country data, technology transfer and standards that do not create excessive compliance costs for smaller businesses.

It can also press for safeguards ensuring that international AI cooperation strengthens domestic research and industry rather than deepening long-term dependence on foreign platforms.

WAICO’s creation gives Indonesia another diplomatic channel, but the value of that membership will ultimately be measured at home.

Success would mean stronger technical talent, useful research partnerships, better digital infrastructure and AI applications that improve productivity and public services. Without those outcomes, participation risks remaining largely symbolic.