Airlangga: AI to Become a 'Game Changer' for the Indonesian Economy

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that artificial intelligence (AI) can be a ‘game changer’ for the Indonesian economy. ‘AI is one of the future game changers, and no single country is at the forefront of AI, so we can advance together with other countries by utilising AI,’ said Airlangga during a press conference in Shanghai on Friday evening, alongside Vice Minister of Communication and Digital Affairs Angga Raka Prabowo and Indonesian Ambassador to China and Mongolia Djauhari Oratmangun. Airlangga noted that Indonesia’s digital economy has a potential value of USD 135 billion by 2026 and will reach USD 366 billion by 2030. ‘This is in line with what Indonesia proposed within the ASEAN Digital Economic Framework Agreement, which is expected to be signed under the Philippines’ chairmanship this year, thereby increasing the digital economy value from USD 1 trillion in ASEAN to USD 2 trillion, with Indonesia’s potential also rising from USD 400 billion to USD 600 billion,’ he explained. The development of the digital economy and AI in Indonesia is not new, as the government launched the Industry 4.0 initiative in 2018, which included a component on artificial intelligence. On the sidelines of a working visit to Shanghai for the signing of the establishment of the World Artificial Intelligence Cooperation Organization (WAICO), Airlangga met with two global Chinese technology companies, Huawei and ByteDance, on Friday. The meetings discussed cooperation opportunities in AI, digital infrastructure, digital talent development, and technology investment. Huawei possesses superior capabilities in telecommunications infrastructure, cloud computing, and AI, while ByteDance is a technology giant developing popular digital platforms such as TikTok, CapCut, Lark, Toutiao, and Douyin. ‘After Indonesia officially became one of the founding countries of WAICO, we want to ensure a real leap in technology cooperation. Huawei, with its capabilities in AI, telecommunications infrastructure, and cloud computing, is a potential strategic partner to support national digital transformation,’ said Airlangga. In his meeting with ByteDance, Airlangga expressed appreciation for the company’s strategic investment and long-term commitment in Indonesia, particularly through Tokopedia and TikTok Shop, which have advanced the digital trade ecosystem. ‘ByteDance’s presence not only strengthens the digital economy ecosystem but also opens wider opportunities for millions of MSMEs to grow through digital platforms and cross-border trade,’ he explained. The government continues to encourage expanded collaboration with ByteDance to support the internationalisation of Indonesian MSME products to reach broader global markets. Airlangga also invited ByteDance to explore expanding cooperation in AI, including Large Language Models (LLM), machine learning, and generative AI.