AI is Taking Over! Is Indonesia as Ready as Vietnam?

Wed, 12 Mar 2025 17:10 | Artificial Intelligence | Editorial INTI

Jakarta, INTI – Artificial Intelligence (AI) has become a key driver of digital transformation in many countries, including Vietnam and Indonesia. Both nations are experiencing significant growth in AI adoption each year, but how do they compare in terms of development, regulation, and impact across industries?

Vietnam: Moving Towards an AI Innovation Hub in ASEAN

Vietnam has shown rapid growth in AI development, supported by clear policies and an ambitious national strategy. The National Strategy on Research, Development, and Application of AI until 2030 sets a bold target for Vietnam to become an AI innovation hub in ASEAN. This commitment is reinforced by Resolution No. 57-NQ/TW, which highlights the critical role of digital technology, innovation, and AI in strengthening the country's global competitiveness.

According to Statista 2024, AI investment in Vietnam has grown by 40% since 2022, with technology and manufacturing sectors leading in adoption. Universities in Vietnam have also been actively producing high-quality AI research and collaborating with international institutions to accelerate technological advancements, ensuring that AI becomes an integral part of the country's economic and industrial progress.

AI has played a transformative role in several key industries in Vietnam. In manufacturing, AI-driven automation has significantly improved efficiency and product quality, making production faster and more cost-effective. In education, universities have started incorporating AI-based curricula while forming partnerships with industries to enhance AI adoption and innovation. Meanwhile, in cybersecurity, AI has been integrated into national data management and security systems, providing stronger protection for public and private sector information in an increasingly digital world.

Indonesia: AI Accelerating Digital Transformation

In Indonesia, AI adoption has also been growing steadily, with a 35% increase since 2022, particularly in finance and e-commerce, as reported by Statista 2024. To accommodate this rapid development, the government has introduced the National AI Strategy 2022-2045, focusing on ethical and responsible AI development. However, while Indonesia has taken steps to establish a legal framework, AI-specific regulations remain in their early stages. Law No. 1 of 2024 and Circular No. 9 of 2023 provide an initial foundation for AI ethics, but clearer guidelines and policies are still needed to regulate AI applications across industries effectively.

AI is being implemented in various sectors in Indonesia, with finance, e-commerce, and government services being the most prominent. In the financial sector, AI has been leveraged for risk analysis, fraud detection, and automated customer service, significantly improving efficiency and transaction security. In e-commerce, AI-powered chatbots and personalized recommendation systems have enhanced the customer experience, making interactions more seamless and tailored to individual preferences. Meanwhile, in government services, AI has started to be integrated into public administration, though its adoption is still in the early stages compared to Vietnam, which has already built a more advanced and structured AI ecosystem.

Vietnam vs. Indonesia: Who is More Prepared?

When comparing the two countries, Vietnam appears to be more advanced in AI readiness and regulation. Its clear national strategy and strong investment in research and development have allowed it to move quickly in AI adoption. On the other hand, Indonesia has great potential, but it still needs to strengthen regulations, increase investment, and accelerate implementation to keep pace with Vietnam.

In terms of legal frameworks, Vietnam has developed a Responsible AI Research and Development Policy (2024) and is working on a Draft Law on the Digital Technology Industry (2025), demonstrating a proactive approach to AI governance. Indonesia, meanwhile, has issued AI Ethics Guidelines through Circular No. 9 of 2023 and included AI-related elements in Law No. 1 of 2024, but these regulations are still in the initial phase and require further refinement.

Despite their differences, both Vietnam and Indonesia are experiencing steady AI investment growth, with Vietnam seeing a 40% increase since 2022 and Indonesia close behind with a 35% increase. These figures indicate that both countries are on the right path, though their approaches to AI adoption and regulation differ significantly.

Conclusion

Vietnam is currently ahead in terms of AI readiness, regulation, and integration across industries. With a clear national strategy, structured policies, and significant investment in research, the country is positioning itself as a leader in AI innovation within ASEAN. Meanwhile, Indonesia has strong potential but still needs to refine its policies, accelerate implementation, and invest more in AI research and development. As AI adoption continues to rise each year, both nations have the opportunity to become key players in Southeast Asia's digital transformation.

If Indonesia can strengthen its regulations and accelerate AI implementation, it may soon catch up with Vietnam and become a strong contender in the regional AI race. The question remains: Will Indonesia take the necessary steps to fully embrace AI, or will Vietnam continue to lead the way?

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