Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Artificial Intelligence (AI) in Indonesia - statistics and facts
Having one of the largest numbers of internet users globally, and being a leader in Southeast Asia’s digital economy, Indonesia is an attractive market for emerging technologies like artificial intelligence (AI). In recent years, AI technology has grown rapidly, affecting various industries across the country. Although Indonesia’s governmental readiness for AI leaves the country trailing behind neighboring countries like Singapore, Malaysia, and Thailand, the future of AI still looks promising. As of 2023, the market size of AI in Indonesia reached approximately 1.8 billion U.S. dollars, and it is projected to grow sixfold by 2030.
Amidst the rapid adoption, some challenges still need to be addressed to maximize Indonesia's AI potential. This includes improving infrastructure and access to the internet, especially as the rollout of 5G technologies in the country remains slow. Moreover, it is crucial to give careful consideration to data privacy and cybersecurity, as Indonesia continues to face high numbers of online data breaches over the years. This is further emphasized by the significant room for growth found in digital literacy among the Indonesian population. Addressing these challenges would help Indonesia accelerate AI growth and its competitive role on a global scale.
AI in business and education
With Indonesia’s substantial young and tech-savvy population, it is no surprise that AI has gained popularity among students and workers across the country. A recent survey found that nearly half of Indonesian students utilized AI tools for their academic tasks at least several times a month, as they found AI helpful in generating ideas and improving time efficiency. Similarly, businesses in Indonesia are also starting to bring AI into their daily operations. However, a major obstacle to greater AI adoption is the lack of skilled human resources in this field. As many young Indonesian workers are interested in developing AI skills for career advancement, the integration of AI-powered solutions and tools into businesses is expected to see strong growth in the coming years.AI in driving a smart future
AI has a fundamental role in enabling many innovations that transform the way people interact with technology, such as the Internet of Things (IoT) and smart technologies. By 2028, Indonesia's smart home market is projected to generate over 873 million U.S. dollars in revenue, with millions of users from various segments such as home entertainment, security and control devices, as well as smart appliances. Additionally, the growing usage of wearable device like smartwatches, particularly for health and fitness tracking, indicates how this technology has become a part of daily life for many Indonesians as they have increasingly prioritized healthier lifestyles.Amidst the rapid adoption, some challenges still need to be addressed to maximize Indonesia's AI potential. This includes improving infrastructure and access to the internet, especially as the rollout of 5G technologies in the country remains slow. Moreover, it is crucial to give careful consideration to data privacy and cybersecurity, as Indonesia continues to face high numbers of online data breaches over the years. This is further emphasized by the significant room for growth found in digital literacy among the Indonesian population. Addressing these challenges would help Indonesia accelerate AI growth and its competitive role on a global scale.
