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Indonesia bets on AI to drive 600-billion-USD digital economy

AI has the potential to generate around 400 billion USD in value for Indonesia’s economy by 2030 under a business-as-usual scenario. If implemented alongside the regional digital economy framework, that figure could climb to 2 trillion USD, an official has said.

Jakarta (VNA) – Indonesia is betting on artificial intelligence (AI) to become a new growth engine, transform its digital economy and enhance its position in the global technological value chain.

The Antara news agency quoted Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto as underscoring that AI can become a "game-changer" for Indonesia's economy.

Speaking in China's Shanghai on July 18, Hartarto stressed that Indonesia can move forward alongside other nations by leveraging AI.

The official noted Indonesia's digital economy is projected to reach 135 billion USD by 2026 and surge to 366 billion USD by 2030. Combined with the ASEAN Digital Economy Framework Agreement (DEFA), the country’s digital economy could be worth around 600 billion USD.

He said DEFA, scheduled to be signed during the Philippine Chairmanship this year, is expected to double the size of the ASEAN digital economy from around 1 trillion USD to 2 trillion USD.

Indonesia had identified AI as a priority at an early stage, incorporating the technology into its “Making Indonesia 4.0” roadmap in 2018, Hartarto said.

AI has the potential to generate around 400 billion USD in value for Indonesia’s economy by 2030 under a business-as-usual scenario. If implemented alongside the regional digital economy framework, that figure could climb to 2 trillion USD, he noted.

The minister also highlighted Indonesia’s role as a founding member of the World Artificial Intelligence Cooperation Organisation (WAICO), saying this will give the country a direct role in high-level discussions on global AI governance.

Through WAICO, Indonesia could promote technology transfer, attract investment, develop AI research centres, and enhance the competitiveness and productivity of startups and micro, small and medium-sized enterprises (MSMEs), he said.

Hartarto represented Indonesia at the signing ceremony for the founding declaration of the WAICO in Shanghai on July 17./.

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