AI Could Be 'Game Changer' for Indonesian Economy, Minister Says

Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, sees artificial intelligence as a transformative force for the nation's economy. He highlighted that AI could contribute up to US$400 billion in revenue by 2030 under current practices, a figure that could surge to US$2 trillion if integrated within a digital economy framework.

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No single country is at the forefront of AI, so we can progress together with other countries by utilizing AI.

Hartarto emphasized Indonesia's position in the global AI landscape, noting that no single country dominates the field, allowing for collaborative progress. He pointed to the nation's digital economy, which is projected to reach US$135 billion by 2026 and US$366 billion by 2030. This growth aligns with Indonesia's proposal for the ASEAN Digital Economic Framework Agreement, which aims to double the digital economy in ASEAN from US$1 trillion to US$2 trillion.

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The agreement is expected to be signed by the Philippines' chairmanship this year. This will increase the size of the digital economy from US$1 trillion in ASEAN to US$2 trillion, and Indonesia's potential will also increase from US$400 billion to US$600 billion.

The minister also referenced the government's 'Industry 4.0' initiative launched in 2018, which includes AI as a key component. Indonesia's payment service, QRIS, now supports multiple currencies across ASEAN, China, Japan, and South Korea, further integrating the nation into regional digital commerce. Indonesia's recent signing of the declaration establishing the World Artificial Intelligence Cooperation Organization (WAICO) as a 'founder' grants it a voice in global AI discussions.

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AI has the potential to contribute up to US$400 billion in revenue to Indonesia under 'business as usual' practices by 2030. However, if implemented within the digital economy framework, this could increase to US$2 trillion.

During his visit to Shanghai, Hartarto met with representatives from major Chinese tech firms like Huawei and ByteDance. He expressed optimism that optimizing WAICO would foster technology transfer, attract investment, and develop AI research centers in Indonesia. This, he believes, will create greater opportunities for local startups and small and medium-sized enterprises (MSMEs) to enhance their productivity and global competitiveness.

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With Indonesia becoming a signatory to WAICO, Indonesia is now classified as a 'founder' of the organization, giving Indonesia access to discussions on AI itself.