MAJALESS ICT \u2013 Jakarta. Indonesia\u2019s target of 6 per cent economic\ngrowth by 2027 requires more than just maintaining consumption and\nincreasing investment. Digital transformation must move up a level,\nshifting from mere infrastructure development and transaction growth to\nbecoming an engine of productivity, value addition, industrial\nstrengthening, and market expansion. According to digital expert Heru\nSutadi, Indonesia possesses significant digital capital, but the next\nchallenge is ensuring that this economic value circulates more widely to\ncreate domestic prosperity.<\/p>\n
The government has set an economic growth target of 6 per cent for\n2027. This target is quite challenging, as Indonesia\u2019s economy grew by\n5.45 per cent in the first half of 2026. The government itself has\npositioned increased investment, productivity, and sectoral\ntransformation as part of the strategy to achieve this goal.\nSimultaneously, the government views the digital economy, AI, data\ncentres, semiconductors, and digital talent as new engines of\ngrowth.<\/p>\n
In an interview with ICT Magazine, Heru Sutuldi discussed Indonesia\u2019s\ndigital economy:<\/p>\n
The 6 per cent economic growth target for 2027 has been set.\nFrom a digital perspective, what must Indonesia do so that technology\ntruly becomes an engine of growth, rather than just a supporting\nsector?<\/strong><\/p>\n Heru Sutadi: First, there must be a change in perspective. Digital\nshould no longer be positioned solely as a matter of telecommunications,\nthe internet, applications, or infrastructure development. Digital must\nbe placed as national economic infrastructure and as an engine of\nproductivity.<\/p>\n If Indonesia wants to grow by at least 6 per cent, almost all\neconomic sectors must become more productive with the help of\ntechnology. Agriculture must be more precise, industry must be more\nautomated, trade must become more efficient, MSMEs must be able to enter\nnational and global markets, logistics must become cheaper, government\nservices must become faster, and the financial sector must become more\ninclusive.<\/p>\n Therefore, the question is not how many people are connected to the\ninternet, but what the people and the business world do after being\nconnected. Connectivity must result in productivity.<\/p>\n The government itself has shifted the paradigm of digital\ninfrastructure development from mere coverage towards \u2018meaningful\nconnectivity\u2019\u2014connectivity that generates economic and social\nbenefits.<\/p>\n Does this mean digital infrastructure development remains a\npriority?<\/strong><\/p>\n Heru Sutadi: It remains very important. However, we must now move to\nthe next stage. Indonesia should not be satisfied simply because it\npossesses BTS (base transceiver stations), fibre networks, satellites,\ndata centres, or increasingly widespread internet access.<\/p>\n We must ask: after the infrastructure is built, how much productivity\nis generated?<\/p>\n For example, building networks in remote areas is not just so that\npeople can watch videos or use social media. Those networks must enable\nfarmers to obtain price information, fishermen to access weather and\nmarket information, MSMEs to sell products outside their regions,\nchildren to receive quality education, healthcare workers to access\nmedical services, and the government to provide services digitally.<\/p>\n Digital infrastructure must have a clear economic and social\nreturn.<\/p>\n What is the most urgent first strategy?<\/strong><\/p>\n Herting Sutadi: I see five engines that must move simultaneously:\nconnectivity, data and cloud, AI, industrial digitalisation, and\ntalent.<\/p>\n These five elements must not be built as separate programmes.\nConnectivity without cloud and computing will not produce a strong\ndigital ecosystem. Cloud without quality data will not produce relevant\nAI. AI without talent will only make Indonesia a user. And all of this,\nwithout industries capable of adopting technology, will not provide a\nsignificant impact on national productivity.<\/p>\n Therefore, Indonesia needs a national digital economic architecture\nthat connects everything.<\/p>\n What about AI, which is currently one of the most strategic\ntechnologies?<\/strong><\/p>\n Heru Sutadi: AI must be viewed as a national productivity technology,\nnot just as a new technology. Indonesia should not stop at the question\nof how many people use AI. A far more important question is how much\neconomic value AI generates.<\/p>\n AI must enter manufacturing, agriculture, healthcare, education,\nfinancial services, trade, logistics, government, energy, and even the\ncreative industry.<\/p>\n We also need to build national AI capabilities. This does not mean\nIndonesia must close itself off from global AI models and create\neverything on its own. On the contrary, global technology should be\nutilised. But at the same time, Indonesia must possess the talent, data,\ncomputing capacity, research, and the ability to develop applications\nand models that suit national needs.<\/p>\n The government is also beginning to encourage the strengthening of\nnational AI centres, talent, and computing capacity. The government\nconsiders AI development essential for increasing Indonesia\u2019s\nproductivity and competitiveness.<\/p>\n Should Indonesia pursue \u2018Sovereign AI\u2019?<\/strong><\/p>\n Heru Sutadi: Yes, but do not misunderstand sovereign AI to mean that\nIndonesia must create all AI technology itself. Sovereignty means\nIndonesia has the ability to choose, the ability to develop, and the\nability to not be entirely dependent.<\/p>\n We may use foreign clouds, foreign AI models, or global technologies.\nHowever, Indonesia must have sufficient national capability so that when\nchanges occur in technology, geopolitics, or global corporate policies,\nIndonesia does not lose the ability to run its strategic services.<\/p>\n That is why investment in data centres, compute clusters, energy,\ntalent, research, and cybersecurity is extremely important.<\/p>\n How can the digital economy produce more than just large\ntransactions, ensuring the benefits truly remain in\nIndonesia?<\/strong><\/p>\n Heru Sutadi: This is one of the perso\u2026<\/p>",
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