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Government and Kadin Strengthen Indonesia’s Readiness for AI Disruption

21 hours ago | Artificial Intelligence


Jakarta, INTI - The Indonesian government and the Indonesian Chamber of Commerce and Industry (Kadin) are strengthening collaboration to prepare the country for the impact of artificial intelligence (AI), robotics, and digital transformation, which are expected to reshape millions of jobs in labor-intensive industries.

Following a meeting with President Prabowo Subianto at the State Palace, Kadin’s Coordinating Vice Chairman for Foreign Affairs, James Riady, said the government has established a clear long-term strategy that not only safeguards Indonesia’s economic resilience but also lays the foundation for future industries capable of creating new employment opportunities.

James explained that rapid advances in AI, robotics, and emerging technologies are fundamentally transforming the global economy, requiring governments and businesses to prepare workers for entirely new industries.

“The President fully understands this challenge. Around 60 million Indonesian workers need to be reskilled and upskilled to participate in the new industries emerging from technological advancement,” James said.

He noted that the government has begun responding through the development of new industrial zones, including positioning Central Java as a future manufacturing hub while transforming Jakarta and its surrounding regions into centers for technology, innovation, and the digital economy.

Building Future Industries and Workforce Readiness

James emphasized that Kadin shares the government’s commitment to attracting investment and creating jobs across Indonesia, particularly in regions expected to become new engines of economic growth.

“As the business community, our focus remains on creating jobs and encouraging investment, especially in regional areas that will become the foundation of Indonesia’s future economy,” he said.

He also praised President Prabowo’s leadership, describing it as both visionary and strategic in addressing global economic challenges while positioning Indonesia to seize emerging opportunities.

According to James, the government’s strategic initiatives, including food security, downstream industrialization, energy security, affordable housing, and the establishment of Danantara as a national investment vehicle, demonstrate a comprehensive roadmap for sustainable economic growth.

AI Investment Creates New Growth Opportunities 

James revealed that global investor interest in Indonesia continues to grow, particularly in AI, robotics, data centers, and other high-tech industries.

He said international technology companies increasingly view Indonesia, especially Batam and the Jakarta–Karawang corridor, as an attractive investment destination due to reliable energy supplies, international fiber connectivity, and the country’s balanced foreign policy.

James added that Indonesia’s access to advanced GPU chips provides a significant opportunity for the country to move beyond AI adoption and become a regional center for AI development and technology production.

“Indonesia has the opportunity to become a new technology hub. We should not only be AI consumers but also producers and innovators,” he said.

Although some businesses remain cautious because of global economic uncertainty, James noted that domestic investment sentiment remains positive, supported by continued retail expansion and strong demand for commercial space across Indonesia.

He concluded that maintaining sound financial management while accelerating investment in future industries will enable Indonesia to create high-quality jobs, strengthen national competitiveness, and position digital transformation as a long-term driver of economic growth.

Conclusion

Through close cooperation between the government and Kadin, Indonesia is preparing for the challenges and opportunities created by AI and digital transformation. By investing in workforce development, advanced industries, and emerging technologies, the country aims to strengthen its competitiveness and secure sustainable economic growth in the AI era.

Read more: Indonesia and India Expand Digital Partnership to Strengthen Artificial Intelligence Development

Indonesia Technology & Innovation
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