AI Can Boost Indonesia’s Economic Growth up to Rp 5,765 Trillion

artificial intelligence (ai) and machine learning (photo: envato elements)

The global landscape of Artificial Intelligence (AI) technology is experiencing massive growth, with projections indicating a significant contribution to the global gross domestic product (GDP) by 2030, estimated at a staggering US$3 trillion.

Within this projection, it is anticipated that Southeast Asian countries will play a pivotal role, with an expected contribution of US$1 trillion. Specifically, Indonesia is forecasted to make a substantial impact, with a projected contribution of approximately US$366 billion, equivalent to Rp 5,765 trillion.

This revelation emerged during the Tech & Telco Summit 2023 event, hosted by CNBC Indonesia, held on Tuesday (5/3/2024) at the Menara Bank Mega in Jakarta, where Minister of Communication and Information (Menkominfo) Budi Arie Setiadi provided insights into the future prospects of AI development.

“Given the remarkable figures, the future development of the AI sector presents significant opportunities,” remarked Minister Budi Arie, highlighting the transformative potential of AI technologies.

Expounding further, Minister Budi Arie underscored AI’s capacity to streamline customer service operations, citing instances where companies achieved substantial savings through the adoption of AI-driven chatbots, amounting to a noteworthy US$11 trillion in 2022 alone.

Additionally, the minister emphasized AI’s pivotal role in enhancing cybersecurity measures, particularly in detecting and thwarting online fraudulent activities, thus bolstering digital trust and security.

Moreover, AI is increasingly recognized as a pivotal enabler of environmental sustainability efforts, with its capacity to optimize energy consumption and mitigate carbon emissions, contributing to global climate change mitigation strategies.

However, Minister Budi Arie acknowledged the myriad challenges inherent in the widespread adoption of AI technologies, including the imperative need for upskilling and reskilling initiatives to equip the workforce with the requisite competencies.

Furthermore, the integration of AI solutions into existing organizational frameworks poses logistical challenges, requiring seamless integration strategies to maximize efficiency and efficacy.

Addressing concerns surrounding AI ethics and governance, the Ministry of Communication and Information has issued comprehensive guidelines to ensure the ethical and responsible development and deployment of its technologies across both public and private sectors.

“In particular, the AI guidelines issued by the Ministry of Communication and Information underscore the importance of ethical and responsible implementation, particularly within the telecommunications sector,” affirmed Minister Budi Arie, highlighting the government’s commitment to fostering a conducive environment for its innovation and deployment.