Indonesia eyes AI, blockchain to prevent trade leaks

Indonesia's Vice Minister of Communication and Digital, Nezar Patria, sees a powerful synergy between artificial intelligence (AI) and blockchain technology as a solution to curb leaks in the national trading system. He articulated this vision during a meeting with the Blockchain, Robotics, and Artificial Intelligence Network (BRAIN) from IPB University in Jakarta.

“

If a trade system can be created with more accurate record-keeping, we can prevent leaks. Production can also be better because we can detect points of loss, allowing for optimization.

Patria explained that a fully digitized trade system, from production to final sale, would enable both the government and businesses to pinpoint where goods are lost or unaccounted for. This enhanced visibility, he argued, would not only boost efficiency but also significantly reduce opportunities for fraud. "If a trade system can be created with more accurate record-keeping, we can prevent leaks. Production can also be better because we can detect points of loss, allowing for optimization," Patria stated.

“

Every mode transfer has a cost. Moving to another platform has another cost. That's why the direction now is towards a seamless, end-to-end system, so that business processes become more efficient.

The minister highlighted blockchain's capability to create transparent and tamper-proof transaction logs, while AI can be employed for market demand forecasting, production optimization, and streamlining distribution. He noted the current inefficiencies and added costs associated with every data transfer, payment, and logistical step in the trade chain. Patria emphasized the need for a "seamless, end-to-end" system to make business processes more efficient.

“

This is good and also in line with IPB's mission. Technology can help the trade system become better, its record-keeping more accurate, and various potential frauds can be suppressed.

This digital transformation approach aligns with the government's broader agenda to digitize key economic sectors, particularly agro-industry, which is a cornerstone of Indonesia's economy. Patria praised the academic community's engagement with cutting-edge technologies like quantum computing and blockchain, stressing the importance of collaboration between government and universities. "We must continue to keep our eyes and ears open to technological developments. The most important thing is how digital solutions developed can truly be utilized to support national strategic programs," he concluded.

“

We must continue to keep our eyes and ears open to technological developments. The most important thing is how digital solutions developed can truly be utilized to support national strategic programs.