Artificial Intelligence Outlook: Dawning Disruptive Epoch for Indonesia Golden Time 2045
Artificial Intelligence (AI) development in Indonesia has been gaining significant momentum in recent years, and the market will be projected to reach USD 1,144 million in 2023, based on Exhibit 1 below. The Indonesian government and various private sector organizations, academic institutions, and research centers have actively promoted and invested in AI research, development, and implementation across multiple sectors. Indonesia recognizes the potential of AI to drive economic growth, enhance productivity, improve public services, and address societal challenges with machine learning is dominated all across sectors in Indonesia. The country has set ambitious goals to become a significant player in the AI field and has taken several initiatives to foster its development.
Exhibit 1. Artificial Intelligence – Indonesia
One of the key drivers behind the development of AI in Indonesia is the government’s commitment to digital transformation and innovation. The Indonesian government has recognized AI as a strategic technology that can drive economic growth, improve public services, and enhance the country’s competitiveness on a global scale. In 2018, the government launched the “Making Indonesia 4.0” roadmap, which aims to accelerate the adoption of Industry 4.0 technologies, including AI, across various sectors. Several research centers and institutions have been established in Indonesia to support this roadmap to focus on AI research and development. One notable example is the Indonesian Institute of Sciences (LIPI), which has set up a dedicated research center called the LIPI Centre for Artificial Intelligence (LCAI).
LCAI conducts research in various areas of AI, such as machine learning, natural language processing, computer vision, and robotics. Furthermore, collaborations with international organizations have played a significant role in advancing AI development in Indonesia. The Indonesian government has partnered with institutions like the United Nations Development Programme (UNDP) and the World Bank to leverage their expertise and resources in implementing AI projects. These collaborations have facilitated knowledge sharing, capacity building, and technology transfer in AI. In addition to research centres and associations, promoting AI education and training programs is crucial for nurturing a skilled workforce in Indonesia. Several universities and educational institutions offer courses and programs related to AI, such as data science, machine learning, and robotics.
These programs aim to equip students with the necessary skills and knowledge to contribute to the development and application of AI in various industries. The story of AI in Indonesia is not limited to research and education; it also extends to practical applications in different sectors. For instance, AI is used in healthcare to improve diagnosis and treatment outcomes. In agriculture, AI is used for crop monitoring, yield prediction, and pest control. The financial sector also leverages AI for fraud detection, risk assessment, and personalized customer experiences. Despite the progress made, challenges still need to be addressed for the further development of AI in Indonesia. One of the main challenges is the need for a comprehensive regulatory framework for AI.
The government is formulating policies and regulations addressing ethical considerations, data privacy, and security concerns associated with AI implementation. Another challenge is the need for increased investment in AI research and development. While there have been efforts to attract foreign direct investment in the AI sector, more funding is required to support local startups, encourage innovation, and develop cutting-edge technologies. In 2022, the most significant artificial intelligence implementation in the financial services industry reached 31%, as the development of money digitization such as e-wallet, e-money, pay later, etc., Followed by professional service at 8%, telecommunication at 7%, health service 4%, etc.
However, the development of Artificial Intelligence in Indonesia has been steadily progressing due to the government’s commitment to digital transformation, the establishment of research centers, collaborations with international organizations, and the promotion of AI education and training programs. However, challenges such as the lack of a comprehensive regulatory framework and increased investment still need to be addressed to advance AI development in Indonesia further.
Hebronstar Strategy Consultants
Afif Muhammad Adventure / Research Analyst
Source :
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