Jakarta, INTI - The government has emphasized that Indonesia’s high level of artificial intelligence (AI) adoption must be translated into increased national productivity, economic value creation, and strengthened global competitiveness.
Minister of Communication and Digital Affairs Meutya Hafid stated that AI adoption in Indonesia has reached 92 percent.
However, its utilization for productive activities and economic value creation still needs to be further expanded.
“Although AI adoption has reached 92 percent, the use of AI for productivity in Indonesia remains minimal. That is why today we are pleased to witness the emergence of new startups,” Meutya said during the graduation event of the Google for Startups Accelerator program at Garuda Spark Innovation Hub, Central Jakarta, Tuesday, February 24, 2026.
Startups as the Engine of Indonesia’s Digital Economy
The program represents a collaboration between the government and global partners aimed at accelerating learning processes and enhancing the skills of Indonesia’s digital talent.
Google for Startups Accelerator has graduated 63 startups, consisting of 43 early-stage startups and 20 Series A startups within its first year since its launch through collaboration between the Ministry of Communication and Digital Affairs and Google Indonesia.
“Sixty-three national startups graduating from this program is not a small number. It has even been reported that there are 2,500 active startups in Indonesia that have directly contributed to generating digital economic value. This shows that startups are the driving force of the national digital economy,” she said.
Meutya encouraged startup players to view Indonesia as one of the largest digital markets in the Asia-Pacific region.
Out of a population of 278 million, around 80.66 percent, or more than 230 million people, are connected to the internet.
The national digital economy has surpassed USD 80 billion and is projected to exceed USD 130 billion by 2025.
“This growth does not happen naturally. It is driven by technological innovation, the transformation of traditional sectors, and most importantly, Indonesia’s digital human resources, which have delivered high economic growth, the largest in Southeast Asia,” she emphasized.
From Digital Market to ASEAN AI Innovation Hub
Meutya urged Indonesia’s digital talents to continue innovating so that the country does not merely become a digital market, but also a birthplace of cutting-edge technological innovations, particularly in AI.
As part of strengthening the ecosystem, the Ministry of Communication and Digital Affairs has also introduced Garuda Spark Innovation Hub as a collaborative space for AI-based startups to connect with global technology companies and venture capital firms.
“We want to move from being merely a digital market to becoming an AI innovation hub in ASEAN,” Meutya concluded.
Conclusion
Indonesia’s 92 percent AI adoption rate reflects strong technological readiness. However, the next challenge lies in transforming widespread usage into higher productivity and sustainable economic value.
By empowering startups, strengthening digital talent, and building collaborative innovation hubs, the government aims to position AI as a core pillar of national productivity, shifting Indonesia from a large digital market into a leading AI innovation center in ASEAN.
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