Indonesia Faces AI Adoption Hurdles: Talent and Regulatory Gaps Identified

JAKARTA - With more than 285 million people, Indonesia is still touted as one of the countries with the largest use of artificial intelligence (AI) technology in the world. In a whitepaper released by the Southeast Asia Public Policy Institute (SEAPPI) and supported by OpenAI, titled Closing the AI Capability Gap in Indonesia, users in Indonesia have already used AI for advanced work. In fact, Indonesia is in the top five countries in the world in the use of ChatGPT for Codex and data analysis. This shows the high utilization of AI for more complex needs, including programming and analytical work. However, amid the massive use of AI, the report sees a gap between the capabilities of advanced AI systems and how users and organizations make the most of them. "Indonesia already has a strong foundation in the adoption of AI. The next stage is to help more people and organizations use AI for more complex work," said SEAPPI's Executive Director and lead author of the white paper, Ed Ratcliffe, on Thursday, September 3. The use of AI in Indonesia is still limited to the use of basic features only. For example, in companies, AI technology is mostly used only at the basic operational level such as to create documents, emails and others. "Only 11 percent use AI tools at the medium level and only 10 percent use AI in a transformational way," he continued. This report notes that there are at least four main obstacles that need to be overcome in order for the use of AI to be more advanced in the country. The first is the digital foundation. Many companies in Indonesia still do not have adequate cloud infrastructure, digital systems, and data management to make the most of AI. The second is skills and talent. Companies need more workers who are able to use AI effectively, as well as specialists who can develop and implement advanced AI technology. The third is the capacity for innovation, where a number of AI projects that have great potential in Indonesia still find it difficult to develop from the pilot stage to large-scale implementation. And fourth is the uncertainty of rules that make some companies more cautious in implementing AI-based business models. To encourage the benefits of AI more broadly, this white paper recommends expanding institutional and corporate access to AI devices and improving workforce skills. Other recommendations include support for the digital transformation of MSMEs, the provision of clearer guidance for each sector, and the expansion of the use of AI in government through joint guidance for procurement and use that can be implemented together. "Business leaders can play a role by giving their teams access to approved corporate AI devices, investing in practical skills, and creating a work environment that allows AI to be applied in various daily work processes," said Sandy Kunvatanagarn, Head of Policy, Southeast Asia at OpenAI.