Indonesia is intensifying efforts to expand its digital ecosystem and artificial intelligence (AI) capabilities, with the goal of driving national economic acceleration and maintaining regional competitiveness.

"Digital technology and AI have become global competitiveness indicators. That’s why the government is making digital transformation a key economic growth engine," said Coordinating Minister for Economic Affairs Airlangga Hartarto during his keynote speech at the 5th AI Innovation Summit 2025, hosted by the National Committee for Artificial Intelligence (KORIKA).

Government Unveils Inclusive Digital Transformation Agenda

The government recently launched a new economic policy package that integrates 17 strategic programs. Eight of them focus on economic acceleration for 2025 and emphasize digital inclusion.

One highlighted initiative is an internship program for university graduates, aimed at accelerating the growth of new digital talent ready to enter the workforce. Airlangga emphasized that digitalization now spans all disciplines—not just engineering and technology—making inclusivity a central element of national policy.

"In every innovation and development, we must not make exclusive policies. Inclusivity is key so that our people can participate in these transformations," he stated.

Bridging Industry and Academia to Build Digital Talent

To ensure alignment between higher education and digital industry demands, the government is strengthening its link and match programs. The goal is to better prepare graduates for real-world digital careers.

The government is also boosting support for MSMEs through digital initiatives. Pilot co-working spaces have been established in Tanah Abang and Blok M, with plans to expand to 15 additional cities.

Indonesia's Regional Leadership in ASEAN's Digital Future

Indonesia is currently leading the development of the ASEAN Digital Economy Framework Agreement (DEFA)—the world’s first regional digital framework. Set for completion in 2026, the framework is projected to double ASEAN’s digital economy to USD 2 trillion by 2030, with Indonesia potentially contributing USD 500–700 billion.

At the national level, Indonesia is the first ASEAN member to complete the AI Readiness Assessment with UNESCO. The country is now implementing its National AI Strategy across seven focus areas, including policy, ethics, innovation, talent development, and investment.

Investments in AI, Infrastructure, and Semiconductor Industry

To support its digital ambitions, the government is enhancing infrastructure through 5G, the Palapa Ring project, base transceiver stations (BTS), and low earth orbit (LEO) satellites.

In parallel, Indonesia is advancing its semiconductor industry, having already achieved capabilities in assembling, testing, and packaging for international export. The next strategic target is mastering chip design to increase competitiveness.

Also present at the summit were Minister of Creative Economy Teuku Riefky Harsya, KORIKA Founder Bambang Brodjonegoro, KORIKA Chairman Hammam Riza, and various ministry and industry leaders.

PHOTO: KEMENKO

This article was created with AI assistance.