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AI and Digital Tranformation are Predicted to Drive Indonesia’s Economic Growth in the Coming Years

5 hours ago | Artificial Intelligence


Jakarta, INTI - The government believes that digital transformation and artificial intelligence (AI) will become new engines of economic growth in Indonesia, after the national economy remained at around 5% for the past seven years.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that Indonesia's average economic growth has been around 5% for the past seven years. According to him, this situation indicates the need for new sources of growth to achieve higher national economic growth.

"Indonesia has recorded average economic growth of around 5% for the past seven years," said Airlangga on Friday, July 10, 2026.

Technological Development will Strengthen National Independence

He explained that Indonesia has overcome various economic challenges, such as the 1998–1999 economy crisis, the 2008 global financial crisis, and the COVID-19 pandemic. Various government policies and regulations are considered successful in maintaining economic stability during these crises.

Airlangga said that new current challenges are emerging due to increasing global uncertainty influenced by geopolitical dynamics and the rapid development of AI technology.

Airlangga stated that President Prabowo Subianto has directed that technological development go hand in hand with strengthening national independence, both in the food and energy sectors, as well as digital transformation, which has a clear roadmap.

Airlangga believes digital transformation is the answer to Indonesia's next economic growth engine. According to him, digital transformation has the advantage of not relying on global logistics chains, allowing its development process to proceed more quickly than in other sectors.

AI Utilization Must be Carefully Planned

Furthermore, Airlangga stated that AI will be a crucial foundation for Indonesia's future economic growth. However, its utilization must be carried out appropriately to provide optimal benefits.

"AI is like a Lamborghini. It's very fast, but whether it's safe or dangerous depends entirely on who's driving it," Airlangga said.

He explained that AI development requires a strong ecosystem with solid data availability, large-scale data centers, computing infrastructure, and the semiconductor industry.

"Without data, there will be no AI. Without hyperscale data centers, AI will not develop. And without computing servers and semiconductor chips, AI will not be able to develop optimally," he said.

To strengthen this ecosystem, the government is also collaborating with the UK to develop a new generation of semiconductor chips. Indonesia also continues to expand international collaboration in the AI industry, including with the United States and several other countries.

Conclusion 

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that digital transformation and AI will be the new engines of Indonesia's economic growth. According to him, AI and digital transformation need to be supported by a strong ecosystem, including data availability, hyperscale data centers, computing infrastructure, and the semiconductor industry. The government is also expanding international cooperation to strengthen the development of AI and semiconductor technology as a foundation for future economic growth.

Read more: Government Introduces Self-Paced Training to Equip Teachers with Deep Learning, Coding, and AI Skills

 

Indonesia Technology & Innovation
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