AI as the Game Changer for Indonesia’s Economic Future

Fri, 14 Mar 2025 13:42 | Artificial Intelligence | Editorial INTI

Jakarta, INTI – Indonesia has significant potential in leveraging artificial intelligence (AI), especially given its high adoption rate in Southeast Asia. According to the 2023 Oliver Wyman report, around 13 percent of businesses in Indonesia have reached an advanced stage of AI adoption, while more than 80 percent of companies have already begun investing in or utilizing AI in their operations. This growth indicates that AI has the potential to make a substantial contribution to the nation’s economic expansion.

AI’s Contribution to Indonesia’s Economy

Several global studies highlight AI as a key driver of future economic growth. The 2023 McKinsey Global Institute report predicts that AI could contribute up to US$13 trillion to the global economy by 2030, while PwC’s report estimates an even higher figure of US$15.7 trillion. In Indonesia, research by Kearney suggests that AI could contribute up to US$366 billion, or approximately 12% of the national economy, by the same year.

In practice, AI is already being utilized across various sectors to enhance efficiency and foster innovation. Major companies in Indonesia, such as Indosat Ooredoo Hutchison and GoTo Gojek Tokopedia, have adopted AI to improve customer service, optimize operations, and develop data-driven business models. Additionally, the government has begun incorporating AI into public services automation and content moderation systems, as seen in the initiatives led by the Ministry of Communication and Digital Affairs.

Challenges in AI Implementation

While AI offers significant economic benefits, Indonesia is actively addressing the challenges of adopting this technology. A major focus is on building a skilled workforce with AI expertise. Although the number of qualified professionals is increasing, there’s still plenty of room for growth. Universities are steadily improving their AI-related programs to meet this demand. Ultimately, strengthening digital talent will be crucial for accelerating AI adoption across the country.

Beyond building a skilled workforce, improving digital infrastructure is critical for speeding up AI adoption. Indonesia has made progress in expanding connectivity, but gaps in access between regions still pose a challenge. Continued investment in infrastructure and technology will help widen AI implementation and ensure more equitable access to digital advancements.

On the regulatory front, strengthening data governance and AI-related policies is vital for creating an inclusive innovation ecosystem. Adaptive and well-rounded regulations will ensure that AI adoption aligns with national priorities, especially when it comes to data security and ethical concerns.

Finally, consistent investment in research and development (R&D) is key to driving AI growth in Indonesia. Collaboration between the government, academia, and private sector will be crucial for pushing AI innovation forward and making sure its benefits are felt across all levels of society.

Building an Inclusive and Sustainable AI Ecosystem

To ensure AI contributes optimally to economic growth, Indonesia needs to develop a more structured strategy. One initiative already in place is the establishment of the Artificial Intelligence Industry Research & Innovation Collaboration (KORIKA), which aims to bridge gaps between the government, industry, academia, and public communities in AI development.

Furthermore, it is crucial to encourage more sectors to go beyond merely being AI technology adopters (takers) and instead play a role in shaping (shapers) and creating AI innovations themselves (makers). This approach will help Indonesia achieve digital sovereignty and enhance its global competitiveness within the AI ecosystem.

Conclusion

With the right strategy, progressive policy support, and synergy among stakeholders, AI can drive Indonesia’s digital transformation and inclusive, sustainable economic growth. By addressing existing challenges—ranging from human resource development and digital infrastructure to adaptive regulations—Indonesia can better harness AI to accelerate innovation and strengthen its global economic competitiveness.

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