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Digital Transformation and AI Could Boost Indonesia's Economy by Up to 1%

5 hours ago | Artificial Intelligence


Jakarta, INTI - The Coordinating Ministry for Economic Affairs assesses that digital transformation and the use of artificial intelligence (AI) can be engines of economic growth for Indonesia. Both are projected to increase national economic growth by up to 1%.

Ferry Irawan, Deputy Minister for Coordination of State-Owned Enterprises (BUMN) Management and Business Development at the Coordinating Ministry for Economic Affairs, stated that various growth engines continue to be promoted, including the technology sector.

"I agree with what Mr. Edwin (Director General of Komdigi Digital Ecosystem) said earlier, regarding digital transformation and artificial intelligence. We can cite several publications that mention this. We can continue to push for additional economic growth of between 0.8 and 1 percent," said Ferry at the RGS Summit 2026 in Jakarta on Tuesday, July 14, 2026.

Benefits for Other Sectors

Ferry said that this contribution can come from various levels. From data center development to increasing productivity in various sectors, including Micro, Small, and Medium Enterprises (MSMEs).

"Starting with the development of the data center itself. Then, the resulting productivity increases, or in the context of MSMEs, how can we increase productivity in MSMEs," he explained.

Furthermore, the government is also working to expand market access and attract foreign investment through various international forums. Indonesia's involvement in international forums, such as the OECD, BRICS, and ASEAN, aims to adopt global standards.

Ferry said this step is intended to ensure Indonesia has globally standardized best practices that can attract global investors to invest in the country.

"Hopefully, this will once again support us in attracting as much investment as possible into our economy. Strong governance is crucial for opening up investment opportunities and transforming digital transformation and the green economy into new sources of growth," he explained.

Conclusion 

The Coordinating Ministry for Economic Affairs assesses that digital transformation and the use of artificial intelligence (AI) have the potential to become new engines of growth for Indonesia's economy, with an additional growth of up to 0.8–1%. This contribution is expected to come from the construction of data centers, increased productivity in various sectors, including MSMEs, and accelerated adoption of digital technology.

Read more: Economist Highlights the Need for Government Support to Accelerate AI Adoption Among MSMEs for Greater Productivity and Competitiveness

 

Indonesia Technology & Innovation
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