Jakarta, INTI – As the digital economy in Indonesia increases, the nation has a great opportunity to lead the artificial intelligence (AI) industry in ASEAN.
It is supported by the fact that in 2024, Indonesia's digital economy is projected to reach $90 billion, driven by the rapidly growing e-commerce sector, which in 2023 contributed 40% of ASEAN's market share with a total transaction value of $77 billion.
According to a report from Antara News on Thursday, January 30, 2025, Indonesia's increasingly mature and sustainable digital ecosystem positions the country as a potential hub for AI innovation in the region.
Minister of Communication and Digital (Komdigi), Meutya Hafid, emphasized that Indonesia has a strong foundation to lead in AI technology in Southeast Asia, particularly with the rapidly growing digital economy that is becoming more integrated across various industrial sectors.
"Indonesia has great potential to become a leader and center for AI innovation in Southeast Asia, especially as the digital economy in the country continues to grow. Our main focus is to drive not only high but also sustainable economic growth," said Meutya Hafid in her statement to Antara News.
Currently, Indonesia is the second-largest digital investment destination in ASEAN, reflecting high investor confidence in the prospects of the country's digital industry.
To strengthen global competitiveness, Indonesia needs to optimize the development of advanced technologies, including AI, to support various sectors, from e-commerce and digital financial services to automation-based manufacturing.
Additionally, research shows that interest in AI technology is increasing across various regions of Indonesia, including Jakarta, East Kalimantan, and the Riau Islands.
This indicates that Indonesia is not only adopting new technologies but is also building a more comprehensive and sustainable AI innovation ecosystem.
With the right support from the government, business sector, and a growing digital ecosystem, Indonesia has a strong chance to become a key player in the AI industry in Southeast Asia, accelerating digital transformation across various strategic sectors.
What Strategies Should Indonesia Consider?
With this great opportunity for Indonesia to become a leader in the AI industry in ASEAN, Indonesia should be prepared to develop a solid strategy to maximize this opportunity. Various parties such as the government, along with the private sectors, academics, and general public should collaborate to form a strong and sustainable digital ecosystem.
Meutya Hafid emphasized that digital transformation must bring real benefits for Indonesia's digital sovereignty and independence. Therefore, Indonesia has outlined three main strategies to accelerate the development of AI technology and national digitalization:
- Strengthening Digital Infrastructure
The government continues to promote equal access to technology, including building a national broadband network and adopting 5G technology. This aims to ensure that all citizens, including those in remote areas, can access digital technology.
- Encouraging Research and Innovation
Developing open and affordable AI is a priority. The government supports collaboration with universities and research institutions to create innovations that can enhance national competitiveness.
- Public-Private Collaboration
Through government supports small and medium enterprises (SMEs) in accessing digital technology and export markets through the SMEs Level Up program. Additionally, ensuring the security and inclusivity of the digital space remains a top priority.
With a focus on inclusivity, empowerment, and trust, Indonesia is committed to achieving digital independence by 2045 and establishing itself as a leading digital economy in Southeast Asia and aims to drive sustainable growth and innovation, boosting its global competitiveness in the digital era.