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The Target Market For AI Development In Indonesia Is Pursuing Guarantees For Technology Transfer

Friday, 10 Jan 2025

The Deputy Minister of Communication and Digital, Nezar Patria, has stated that Indonesia is emerging as a significant market for the utilization of artificial intelligence (AI). The government is actively working to ensure that technology companies engage in the transfer of technology and knowledge related to AI. 

Nezar made these remarks while speaking at a national seminar titled "AI for Indonesia" on Wednesday, January 8, 2025. The seminar was organized by Gadjah Mada University (UGM) in Yogyakarta. 

"Currently, with internet users reaching 80 percent of the population, or approximately 221 million people, Indonesia represents a crucial market for AI technology," Nezar noted, participating virtually. 

For this reason, he emphasized that the government is continuously seeking collaboration with various global and regional technology companies to ensure the transfer of knowledge and technology in the development of national AI. "This is essential so that we do not merely become consumers in the adoption of this technology," he stated. 

Nezar expressed hope that the transfer of technology and knowledge would align with the investments made by technology companies in Indonesia for AI development. This will enhance the capacity of domestic human resources to master the technology. 

Furthermore, Nezar revealed that the adoption of AI technology is expected to make a significant contribution to Indonesia's gross domestic product (GDP). By 2030, its value is projected to reach 366 billion USD, equivalent to approximately IDR 5,800 trillion. 

"The anticipated growth will occur in digital industries that adopt AI technology, including gaming, education, and marketing," he added. 

Currently, Nezar explained that the government is also preparing a comprehensive governance framework for AI to support the creation of a productive ecosystem. One of the initiatives includes designing policies to provide legal certainty regarding the utilization and development of AI. 

Additionally, there is an ongoing enhancement of regulations concerning AI ethics, which is already addressed in the current circular letter. 


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