Main Ads

Ad

Digitalization and AI Emerge as New Drivers of Indonesia’s Economy, Projected to Reach Rp 1,656 Trillion

1 week ago | Artificial Intelligence


Jakarta, INTI - Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that Indonesia’s digital economy was valued at approximately US$99 billion, equivalent to around Rp 1,656 trillion, last year. He emphasized that digitalization and artificial intelligence (AI) are emerging as key engines of economic growth.

The figure is based on the eConomy SEA 2025 report published by Google, Temasek, and Bain & Company. Speaking at the GrabX 2026 event in Jakarta on Wednesday, April 8, Airlangga stated that the government views digital transformation and AI as central to Indonesia’s future economic expansion.

According to the Global Innovation Index (GII) 2025, Indonesia has climbed to 55th place, a significant improvement from its 85th position in 2020. The country is now home to around 3,200 startups, including seven globally scaled unicorns operating across sectors such as food and beverage, fintech, e-commerce, and transportation.

Strengthening Ecosystem Through Innovation, Infrastructure, and Talent

Airlangga highlighted that Indonesia’s digital economy can be further strengthened through technological innovation, particularly in online transportation services such as ride-hailing and delivery platforms, areas actively developed by Grab.

He noted that the integration of AI into digital transportation services can provide significant benefits for driver-partners, MSMEs, and consumers, while also creating new and inclusive job opportunities.

“The use of AI technology helps optimize purchasing power, especially for small and medium enterprises,” he explained.

In addition, real-time data utilization, ranging from sales trends to customer insights, can support MSMEs in making more informed decisions about product development and supply strategies.

Airlangga also stressed that the advancement of AI must be supported by robust data center infrastructure. He pointed out that Indonesia offers competitive advantages in terms of land, electricity, and water costs compared to other countries such as Singapore, making it an attractive destination for digital infrastructure investment.

Furthermore, he underscored the importance of adaptive and innovative digital talent in ensuring that digital transformation is inclusive and sustainable.

To support this, the government continues to strengthen national readiness through various initiatives, including collaboration with Arm Holdings to build technological capacity. This year, the program aims to train 15,000 individuals in AI-related skills.

At the regional level, Indonesia is also leading efforts to develop the ASEAN Digital Economy Framework Agreement (DEFA), which is expected to be signed in 2026 under the Philippines’ chairmanship as a concrete step toward deeper regional digital integration.

Airlangga also expressed appreciation for Grab’s continued innovation in developing AI-based solutions, particularly those that support driver-partners, MSMEs, and consumers across its ecosystem.

Conclusion

Indonesia’s digital economy is entering a new era driven by digitalization and artificial intelligence as core growth engines. With strong government support, expanding infrastructure, and continuous investment in talent and innovation, the country is well-positioned to accelerate inclusive economic growth and strengthen its competitiveness in the global digital landscape.

Read more: Meta Introduces New AI Model to Compete with OpenAI’s ChatGPT and Google’s Gemini

Indonesia Technology & Innovation
Advertisement 1