Jakarta, INTI - Nailul Huda, an economist from the Center of Economics and Law Studies, emphasized that the government should support artificial intelligence (AI) adoption readiness among micro, small, and medium enterprises (MSMEs) by strengthening digital literacy and providing more affordable AI-based services.
Huda explained that AI can help business owners handle various operational tasks, from marketing activities to financial record-keeping, while reducing the risk of human errors.
“Approximately 95 percent of businesses in Indonesia are micro and ultra-micro enterprises. By nature, they do not necessarily require AI in their operations. However, for small and medium enterprises, AI can provide significant support in improving their work processes,” Huda said in Jakarta on Monday, 13 July, 2026.
Challenges Limiting AI Adoption Among MSMEs
He noted that AI adoption among small and medium enterprises remains relatively low despite its potential to simplify and improve business operations.
One of the key challenges is the limited quality of human resources, particularly in regions outside Java, which affects the ability of businesses to utilize emerging technologies effectively.
In addition, internet usage that is still largely focused on communication and information searches has limited the broader adoption of AI-based solutions among MSMEs.
Huda also highlighted that the relatively high cost of AI services remains a barrier for many small and medium business owners.
“With relatively low product prices, expensive AI services are often not aligned with their business capabilities,” he said.
Strengthening AI Accessibility for Business Growth
He encouraged the government and digital service providers to expand education and awareness regarding the benefits of AI for business activities.
Such collaboration is considered essential to help MSMEs understand how AI can be applied to improve productivity, efficiency, and competitiveness.
“The government could provide incentives for AI services targeting MSMEs, allowing these solutions to become more affordable. However, the incentives should focus on local service providers that specifically support MSME business growth, rather than large technology providers,” Huda added.
Strengthening digital literacy, providing incentives, and improving access to affordable AI solutions are expected to gradually increase AI adoption among MSMEs and support the growth of small and medium enterprises in Indonesia.
Conclusion
Accelerating AI adoption among MSMEs requires stronger digital literacy, affordable technology access, and government support to help businesses improve productivity, efficiency, and competitiveness in the digital economy.
Read more: Mitigating the AI Bubble Seen as Essential to Safeguarding Indonesia’s Digital Industry