Indonesia Accelerates Digital Transformation with AI Adoption to Achieve Golden Indonesia 2045

Jakarta, INTI– The Indonesian government is fast-tracking digital transformation to elevate the country out of the middle-income trap and towards achieving its Golden Indonesia 2045 vision. This ambitious goal is being driven by significant advancements in technology, particularly the adoption of Artificial Intelligence (AI) in public services.

Budi Arie Setiadi, the Minister of Communication and Information Technology, emphasized the importance of integrating AI during his keynote address at the Google AI for Golden Indonesia event in Central Jakarta on Monday, June 3, 2024.

“Indonesia currently ranks fourth in the AI integration readiness index for public services, according to last year’s Oxford Insight report. This is quite an achievement. AI is projected to contribute USD 366 billion to our GDP by 2030,” Minister Budi Arie stated.

Minister Budi Arie highlighted the increasing trend in AI utilization, referencing the Stanford University AI Index Report, which indicated that global companies have adopted AI in at least one business unit or function. “AI is being used across various sectors, including healthcare, manufacturing, agriculture, and education,” he added.

In Indonesia, AI is simplifying tasks for workers. “According to data from Kompas last year, 22.1% of workers are utilizing AI, and 26.7 million workers feel assisted by AI,” he noted.

Despite projections of 83 million jobs being displaced by AI, Minister Budi Arie remains optimistic, predicting the creation of 69 million new jobs due to AI and machine learning advancements. “After attending the WSIS in Geneva, Switzerland, I concluded that AI is not against people and humanity. AI must retain and promote a sense of humanity, which is fundamental,” he asserted.

Minister Budi Arie underscored the importance of developing critical thinking skills and digital literacy for future talent. He urged all sectors to enhance skill training, online learning platforms, workshops, and collaborations between educational institutions and industry. “Technological literacy is increasingly crucial, reflecting the shift in skills and jobs over the next five years,” he said.

To mitigate AI-related risks, Minister Budi Arie pointed out that international organizations and countries have started developing AI governance frameworks. These include Singapore’s AI Verify (2020), China’s New AI Regulations (2023), Brazil’s AI Bill (2023), and the US Executive Order (2023), which aim to protect consumer rights, promote innovation, and ensure fair competition.

“There’s also the UNESCO Recommendation on the Ethics of AI (2021), addressing the ethical development and use of AI based on principles of safety, proportionality, human rights, and sustainability,” he elaborated.

Minister Budi Arie mentioned that Indonesia is a sponsoring nation of the UN in advocating for inclusivity and human rights in AI development. “Through initiatives like the Global Digital Compact (2024) and the UN General Assembly Resolution on AI for Sustainable Development, we are advancing these principles,” he explained.

The event was attended by Special Staff Dedy Permadi, Secretary of the Directorate General of Informatics Applications I Nyoman Adhiarna, and Director of Digital Economy of Ditjen Aptika Bonie W. Pudjianto. Also present were Minister of Health Budi Gunadi Sadikin, Google's Vice President of Government Affairs and Public Policy Karan Bhatia, Google Indonesia’s Director of Government Affairs and Public Policy Putri Alam, and Telkom Indonesia’s Director of Digital Business.