Indonesia Ready to Become a Major Player in the Era of Artificial Intelligence

Jakarta, INTI - Indonesia, with a population of over 270 million, has immense potential to become a major player in the new technology industry, including Artificial Intelligence (AI). According to the 2023 Datareportal report, the country has 212 million internet users with a penetration rate of 77%, 167 million social media users, and 353 million active mobile connections. With the rapid development in the digital sector, the utilization of AI in Indonesia is projected to contribute around 12% to the national GDP growth or USD366 billion by 2030.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized this great potential in his keynote speech delivered online at the National Symposium: Launch of the AI Transformation Policy Manifesto, Recommendations for Optimizing Indonesia's Digital Economy, organized by Bisnis Indonesia and ELSAM on Tuesday (08/20). “Currently, our country ranks 6th with the largest number of start-ups, totaling 2,646, including 15 Unicorns and 2 Decacorns. This shows that Indonesia is ready to become a major player in the era of Artificial Intelligence,” Airlangga said.

Globally, AI adoption in the industrial sector has reached 56%, and generative AI is projected to contribute USD4.4 trillion annually to the global economy. However, the 2023 Global AI Index shows that Indonesia is still ranked 46th out of 62 countries. To overcome this, Indonesia needs to accelerate digital infrastructure development to address various challenges in AI development.

One of the main challenges is the uneven internet access, especially outside Java. Indonesia's average broadband speed is currently only 28.8 Mbps for fixed broadband (ranked 8th in ASEAN) and 24.6 Mbps for mobile (ranked 9th in ASEAN). In response to this, the government has built the 12,100 km Palapa Ring fiber optic network that connects 57 regencies/cities across Indonesia and has prepared BTS in 1,600 locations throughout Indonesia, as well as launched the SATRIA-1 multifunction satellite.

Additionally, the government plans to build data centers in Batam, the Nusantara Capital City (IKN), and Greater Jakarta to strengthen the national digital infrastructure. This step aligns with the projected need for 9 million skilled IT workers in Indonesia by 2030. Although the number of ICT graduates continues to increase, the demand for digital talent is growing faster than the supply of talent.

The government is committed to continuing its efforts to promote digital talent development initiatives through programs such as the “Indonesia Digital Literacy National Program” under the theme “Indonesia Becomes More Digitally Capable.” These digital training themes include Big Data Analysis, Cybersecurity, Internet of Things, Cloud Computing, Artificial Intelligence, Augmented Reality, Virtual Reality, Machine Learning, Programming Coding, and Digital Entrepreneurship. The implementation of this program also involves collaboration with universities and companies, both national and international.

To support digital transformation, including AI development, the government has launched the 2020-2045 National Artificial Intelligence Strategy as a guide for national AI policy. Additionally, the National Digital Economy Strategy was launched last December, with one of its main pillars being research, innovation, and the development of a good AI ecosystem in Indonesia.

To ensure balanced and responsible AI utilization, the government has also issued a Circular on Artificial Intelligence Ethics. “The sustainability of government support for digital transformation is also ensured through the thematic budget ‘Infrastructure Development in Driving Economic Growth’ in the 2025 State Budget with a value of IDR 400.3 trillion,” said Airlangga. This budget focus includes providing internet access in 36,830 public service locations and operating the SATRIA-1 multifunction satellite with a capacity of 150 Gbps.

Concluding his speech, Minister Airlangga expressed appreciation to Bisnis Indonesia Group and ELSAM for organizing this event, in line with the government's efforts to increase AI utilization for the nation's welfare.