Indonesia Aims to Convert High AI Adoption into Economic Value, Targets Regional Innovation Leadership
Jakarta, The Gulf Observer: Indonesia’s Communication and Digital Minister Meutya Hafid on Tuesday emphasized the need to transform the country’s high artificial intelligence (AI) adoption rate into tangible productivity gains, stronger competitiveness, and greater economic value as it seeks to position itself as a regional AI innovation hub.
In a statement issued in Jakarta, Meutya noted that while Indonesia’s AI adoption rate has reached an impressive 92 percent, its productive utilization and contribution to value creation remain limited. She urged startups to accelerate innovation and commercialization efforts to unlock the full economic potential of emerging technologies.
“Despite 92 percent AI adoption, its productive use is still minimal. That is why we welcome the emergence of new startups to convert technology into real economic value,” she said.
The minister highlighted Indonesia’s significant digital potential, pointing to its population of 278 million people, with more than 230 million already connected to the internet. This represents 80.66 percent of the population, making Indonesia one of the largest digital markets in the Asia-Pacific region.
Indonesia’s digital economy has surpassed US$80 billion and is projected to exceed US$130 billion by 2025. The growth is being driven by rapid technological innovation, digital transformation across traditional sectors, and an expanding pool of digital talent.
To further strengthen the ecosystem, the government has launched the Garuda Spark Innovation Hub, a platform designed to connect AI-based startups with global technology firms and venture capital investors. The initiative aims to accelerate product development and expand market access.
“We aim to shift from being merely a digital market to becoming an AI innovation hub in ASEAN,” Meutya said.
The government is also collaborating with global companies to boost skills development. Through initiatives such as the Google for Startups Accelerator, 63 Indonesian startups have graduated since the program’s launch last year.
These graduates form part of more than 2,500 active startups that are directly contributing to the country’s digital economy, reinforcing the sector’s expanding role as a key driver of national economic growth, the minister added.
