Bandung, IndonesiaSentinel.com — Indonesia has great potential in the digital economy to reap substantial benefits from the effective application of artificial intelligence (AI). It is projected that AI could contribute as much as $366 billion, or IDR 5.6 trillion, to the nation’s economy by 2030.
According to Wijaya Kusumawardhana, the Social, Economic, and Cultural Affairs Expert Staff at the Ministry of Communication and Information Technology (Kominfo), AI’s contribution to the global economy is estimated to reach $13 trillion. Meanwhile, the Southeast Asian region could see a $1 trillion boost, with Indonesia expected to account for $366 billion of that total.
Wijaya emphasized that AI technology will be crucial for Indonesia in closing the gap with other nations, particularly in the realm of the digital economy. “Our country has a significant advantage with its large youth population, totaling 105 million young citizens,” he said during the Selular Business Forum in Jakarta on Monday, September 9, 2024.
Ari Kurniawan, Deputy EVP of Digital Technology and Platform Business at Telkom, added that the global market capitalization of generative AI has surged dramatically, from $44 billion in 2020 to $16.3 trillion in 2023. However, he noted that AI adoption in Indonesia is still lagging behind, even compared to neighboring countries. Indonesia currently ranks fourth in the region, with an overall AI index score of 61.03, trailing Singapore (81.97), Malaysia (68.71), and Thailand (63.03).
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To catch up, Ari emphasized the need for a comprehensive national AI strategy. “This strategy should include investing in AI research and development, fostering a digital ecosystem for AI, creating a supportive policy environment, building human resource capacity, preparing the workforce for market transformations, and engaging in international cooperation to establish trusted AI systems,” Ari explained.
Ari also stressed the importance of regulatory frameworks to govern AI usage in Indonesia. “There needs to be clear regulations regarding AI investment, competition, and business sustainability. These regulations are essential for maximizing AI’s positive impact while mitigating any potential negative consequences,” he added.
Responding to the need for regulation, Wijaya noted that the Ministry of Communication and Information Technology has already issued Ministerial Circular No. 9 of 2023, which outlines ethical guidelines for AI development in Indonesia. “This serves as a framework derived from the Electronic Information and Transactions Law (ITE) and the Personal Data Protection Law (PDP),” Wijaya concluded.
(Raidi/Agung)
