Indonesia Eyes 1% Economic Boost from AI and Digital Transformation

Indonesia is actively pursuing digital transformation and artificial intelligence as key engines for economic growth, aiming to add between 0.8 and 1 percent to its GDP. Ferry Irawan, Deputy for State-Owned Enterprise Management and Development at the Coordinating Ministry for Economic Affairs, highlighted these initiatives at the Risk and Governance Summit 2026.

Growth is expected to stem from the development of data centers and enhanced productivity, particularly among Micro, Small, and Medium Enterprises (MSMEs). The government is also focused on strengthening market access and investment by fostering collaborations with international bodies like the OECD, BRICS, and ASEAN. This aims to adopt global best practices and attract foreign investment, with strong governance being crucial for unlocking these opportunities.

Despite global uncertainties and conflicts, Indonesia's economy remains robust. The International Monetary Fund (IMF) maintained its growth projection for Indonesia at 5 percent for the year in its July 2026 World Economic Outlook, even as it cut projections for other developing nations. Similarly, the Asian Development Bank (ADB) kept its forecast for Indonesia at 5.2 percent, while revising down its projections for Southeast Asia. The government's optimism is bolstered by these positive assessments, underscoring confidence in the nation's economic trajectory.

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If we can continue to push this, the additional economic growth will be between 0.8 to 1 percent.