AI for Social Assistance and MSMEs to Drive Welfare Improvement

Minister of Communication and Digital Affairs Meutya Hafid stated that the utilisation of artificial intelligence (AI) for the digitalisation of social assistance (bansos) and the strengthening of micro, small, and medium enterprises (MSMEs) is an effort to bolster the real economy and improve public welfare.

“Technology must be a tool to improve the people’s welfare, strengthen MSMEs, and ensure that digital transformation truly benefits all of Indonesia,” Meutya said in an official statement received in Jakarta on Wednesday.

Meutya conveyed this at the Indonesia Summit 2026 in South Jakarta on Wednesday (17/6), highlighting that AI will also serve as a catalyst for the growth of MSMEs, which have long been the backbone of the national economy. With the support of digital technology, small business operators will gain broader market access, better operational efficiency, and opportunities to expand their businesses to the regional level.

“The figures for digital economic growth must be reflected in and have an impact on society,” Meutya said.

Meutya explained that the use of AI for social assistance helps manage and analyse recipient data more accurately, making the processes of verification, data updating, and decision-making faster, more targeted, and more efficient.

“AI helps the government manage and analyse data better, so that the verification process, updating recipient data, and decision-making can be carried out more accurately,” Meutya stated.

Meutya said the digitalisation of social assistance will reach approximately 18 million beneficiary families or around 50 million aid recipients across Indonesia. She added that a trial of the programme in Banyuwangi Regency has shown positive results, and the government is now preparing to expand its implementation to other regions.

“If this programme proceeds according to plan, it will become one of the largest digital inclusion programmes in the region,” she said.