Jakarta, INTI - The adoption of artificial intelligence (AI) among Indonesia's micro, small, and medium-sized enterprises (MSMEs) continues to gain momentum as stakeholders work to ensure that AI benefits businesses of all sizes, not just large corporations. Insights gathered from thousands of MSMEs already using AI are now helping shape recommendations for a more inclusive national AI policy.
Building an Inclusive AI Framework for MSMEs
This initiative was highlighted during the National Policy Convening Indonesia: Charting the Blueprint for AI-Inclusive Indonesia, organized by KUMPUL Impact in Jakarta on 8 July 2026. The forum brought together government representatives, businesses, international organizations, and community leaders to discuss strategies for making AI more accessible and beneficial to MSMEs.
The event forms part of the AI Opportunity for MSMEs (AIM ASEAN) program, led by the ASEAN Foundation in partnership with AVPN, with support from Google.org and the Asian Development Bank (ADB). The regional initiative aims to empower 54,000 MSMEs across Indonesia through the safe and responsible adoption of AI technologies.
As the program's implementing partner in Indonesia, KUMPUL Impact is supporting approximately 32,000 MSMEs, helping entrepreneurs integrate AI into their businesses to improve productivity, operational efficiency, and long-term growth.
Founder and Chairperson of KUMPUL Impact, Faye Wongso, emphasized that effective AI policies must be grounded in the real-world experiences of business owners rather than developed solely through theoretical discussions. She stressed that policy frameworks should address the everyday challenges faced by MSMEs.
Similarly, Eci Ernawati, Project Manager for AIM ASEAN at the ASEAN Foundation, noted that the success of digital transformation should be measured by the value AI creates for small businesses. She emphasized that AI must remain practical, understandable, and accessible so entrepreneurs can improve product quality, expand their businesses, and strengthen competitiveness.
Indonesia's Presidential Special Staff for MSMEs and Digital Technology, Tiar Nabilla Karbala, echoed this view, describing AI as a strategic tool for narrowing productivity gaps and expanding opportunities for millions of small businesses rather than benefiting only large enterprises.
Early Results Highlight Opportunities and Challenges
The forum also presented preliminary findings from the AIM ASEAN program in Indonesia. To date, the initiative has reached 16,037 MSMEs across 32 provinces, with 62.2% of participants being women, demonstrating the program's broad and inclusive reach.
The early implementation identified several key barriers to AI adoption, including limited digital and financial literacy, which continue to hinder many MSMEs from fully leveraging AI technologies. The findings also show that successful AI adoption depends heavily on strong collaboration between local governments, MSME communities, and development partners.
One example highlighted during the forum was Kuningan Regency, where cross-sector collaboration has helped accelerate AI adoption among local MSMEs.
The lessons and insights gathered through the program will be consolidated into a set of policy recommendations expected to support Indonesia's national strategy for developing an inclusive AI ecosystem that enables MSMEs to fully participate in the country's digital economy.
Conclusion
As AI adoption continues to expand among Indonesian MSMEs, the insights gathered from real-world implementation are expected to play a crucial role in shaping more inclusive and practical AI policies. By addressing existing challenges and strengthening collaboration across sectors, Indonesia aims to build an AI ecosystem that empowers small businesses to innovate, improve productivity, and thrive in the digital economy.
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