Digital Expert Heru Sutadi: Indonesia Cannot Achieve Minimum 6 Per Cent Growth Without Digital Transformation

MAJALESS ICT – Jakarta. Indonesia’s target of 6 per cent economic growth by 2027 requires more than just maintaining consumption and increasing investment. Digital transformation must move up a level, shifting from mere infrastructure development and transaction growth to becoming an engine of productivity, value addition, industrial strengthening, and market expansion. According to digital expert Heru Sutadi, Indonesia possesses significant digital capital, but the next challenge is ensuring that this economic value circulates more widely to create domestic prosperity.

The government has set an economic growth target of 6 per cent for 2027. This target is quite challenging, as Indonesia’s economy grew by 5.45 per cent in the first half of 2026. The government itself has positioned increased investment, productivity, and sectoral transformation as part of the strategy to achieve this goal. Simultaneously, the government views the digital economy, AI, data centres, semiconductors, and digital talent as new engines of growth.

In an interview with ICT Magazine, Heru Sutuldi discussed Indonesia’s digital economy:

The 6 per cent economic growth target for 2027 has been set. From a digital perspective, what must Indonesia do so that technology truly becomes an engine of growth, rather than just a supporting sector?

Heru Sutadi: First, there must be a change in perspective. Digital should no longer be positioned solely as a matter of telecommunications, the internet, applications, or infrastructure development. Digital must be placed as national economic infrastructure and as an engine of productivity.

If Indonesia wants to grow by at least 6 per cent, almost all economic sectors must become more productive with the help of technology. Agriculture must be more precise, industry must be more automated, trade must become more efficient, MSMEs must be able to enter national and global markets, logistics must become cheaper, government services must become faster, and the financial sector must become more inclusive.

Therefore, the question is not how many people are connected to the internet, but what the people and the business world do after being connected. Connectivity must result in productivity.

The government itself has shifted the paradigm of digital infrastructure development from mere coverage towards ‘meaningful connectivity’—connectivity that generates economic and social benefits.

Does this mean digital infrastructure development remains a priority?

Heru Sutadi: It remains very important. However, we must now move to the next stage. Indonesia should not be satisfied simply because it possesses BTS (base transceiver stations), fibre networks, satellites, data centres, or increasingly widespread internet access.

We must ask: after the infrastructure is built, how much productivity is generated?

For example, building networks in remote areas is not just so that people can watch videos or use social media. Those networks must enable farmers to obtain price information, fishermen to access weather and market information, MSMEs to sell products outside their regions, children to receive quality education, healthcare workers to access medical services, and the government to provide services digitally.

Digital infrastructure must have a clear economic and social return.

What is the most urgent first strategy?

Herting Sutadi: I see five engines that must move simultaneously: connectivity, data and cloud, AI, industrial digitalisation, and talent.

These five elements must not be built as separate programmes. Connectivity without cloud and computing will not produce a strong digital ecosystem. Cloud without quality data will not produce relevant AI. AI without talent will only make Indonesia a user. And all of this, without industries capable of adopting technology, will not provide a significant impact on national productivity.

Therefore, Indonesia needs a national digital economic architecture that connects everything.

What about AI, which is currently one of the most strategic technologies?

Heru Sutadi: AI must be viewed as a national productivity technology, not just as a new technology. Indonesia should not stop at the question of how many people use AI. A far more important question is how much economic value AI generates.

AI must enter manufacturing, agriculture, healthcare, education, financial services, trade, logistics, government, energy, and even the creative industry.

We also need to build national AI capabilities. This does not mean Indonesia must close itself off from global AI models and create everything on its own. On the contrary, global technology should be utilised. But at the same time, Indonesia must possess the talent, data, computing capacity, research, and the ability to develop applications and models that suit national needs.

The government is also beginning to encourage the strengthening of national AI centres, talent, and computing capacity. The government considers AI development essential for increasing Indonesia’s productivity and competitiveness.

Should Indonesia pursue ‘Sovereign AI’?

Heru Sutadi: Yes, but do not misunderstand sovereign AI to mean that Indonesia must create all AI technology itself. Sovereignty means Indonesia has the ability to choose, the ability to develop, and the ability to not be entirely dependent.

We may use foreign clouds, foreign AI models, or global technologies. However, Indonesia must have sufficient national capability so that when changes occur in technology, geopolitics, or global corporate policies, Indonesia does not lose the ability to run its strategic services.

That is why investment in data centres, compute clusters, energy, talent, research, and cybersecurity is extremely important.

How can the digital economy produce more than just large transactions, ensuring the benefits truly remain in Indonesia?

Heru Sutadi: This is one of the perso…