Government Says AI Could Boost Growth by Up to 1 Percent

Deputy for Coordination of State-Owned Enterprise Management and Development at the Coordinating Ministry for Economic Affairs, Ferry Irawan, stated that the government is striving to drive several engines of economic growth, including through digital transformation and artificial intelligence (AI). Ferry said these two aspects could boost economic growth figures. “If we can continue to push this, the additional economic growth will be between 0.8 and 1 percent,” he said at the Risk and Governance Summit (RGS) 2026 at Hotel Bidakara Jakarta on Tuesday, 14 July 2026. The additional source of growth arises from the construction of data centres and the resulting increase in productivity. As is known, the government is targeting data centre development to lift the economy in line with the increasing need for digital infrastructure to support economic activity. Another effort being made is increasing the productivity of MSMEs. The government is also strengthening market access and investment by encouraging various collaborations involving international forums, including the OECD, BRICS, ASEAN, and other global platforms. The aim is to adopt international best practices to attract as much investment as possible into the Indonesian economy. Strong governance is also crucial to opening up investment opportunities. “And making digital transformation and the green economy new sources of growth,” Ferry said. He also explained that the Indonesian economy remains quite resilient despite various global uncertainties and conflicts. He cited the assessment of the International Monetary Fund (IMF) in the July 2026 edition of the World Economic Outlook, which maintained Indonesia’s economic growth at 5 percent throughout this year. At the same time, the IMF cut its growth projections for other developing countries, or in the Asian region, from 5.1 percent to 5 percent. The government’s optimism also emerged following the publication by the Asian Development Bank (ADB). In the July edition, the ADB maintained Indonesia’s outlook at 5.2 percent. Meanwhile, the ADB projected that growth in Southeast Asian countries would decline from 4.7 to 4.6 percent.