Indonesia's digital talent will determine its 2045 future
At the same time, artificial intelligence (AI) is reshaping labor market demands while cyber threats continue to grow in sophistication.
The changing landscape presents Indonesia with a new challenge. A large working-age population is a valuable development asset, but it does not automatically translate into stronger economic growth.
Businesses increasingly seek workers who can learn quickly, adapt to change, solve problems, and use technology effectively rather than simply perform routine tasks.
As labor market demands evolve, human capital development can no longer focus solely on expanding the workforce. Indonesia must ensure workers possess the competencies required by the digital economy.
Data presented by Coordinating Minister for Economic Affairs Airlangga Hartarto in late July 2025 show that developing digital talent remains one of Indonesia’s biggest challenges.
Airlangga said information and communication technology (ICT) professionals account for only about 0.8 percent of Indonesia’s total workforce.
At the same time, Indonesia’s digital economy offers enormous opportunities. Airlangga projected it could reach US$600 billion by 2030 and become one of the country’s main engines of economic growth.
That opportunity, however, must be matched by an adequate supply of digital talent. The challenge is that technological change is advancing faster than education and training systems can prepare the workforce.
Without enough skilled workers, Indonesia’s digital economy will struggle to realize its full growth potential.
Digital talent development extends beyond producing technology specialists. It also means developing people who can use technology to solve problems, improve productivity, and create value across industries.
The window of opportunity to strengthen Indonesia’s workforce is limited.
Projections compiled by the Ministry of National Development Planning/National Development Planning Agency (Bappenas) using data from Statistics Indonesia (BPS) show the share of people aged 15–64 is expected to decline from 64.61 percent in 2025 to 60.22 percent by 2045, while the elderly population continues to grow.
The demographic transition underscores the urgency of improving workforce quality before Indonesia becomes an aging society.
Future competitiveness will depend less on the size of the workforce than on workers’ ability to innovate, adopt technology, and improve productivity.
A new formula
Artificial intelligence is changing how people prepare for the workplace. Education can no longer focus only on today’s skills because technologies and occupations are evolving rapidly.
The ability to continue learning is becoming one of the most valuable competencies. Digital talent requires not only technical proficiency but also analytical thinking, information literacy, collaboration, creativity, and problem-solving.
The World Economic Forum identifies analytical thinking, creativity, flexibility, resilience, and lifelong learning among the skills growing most in importance as technological change accelerates.
Indonesian Communication and Digital Affairs Minister Meutya Hafid said building a digital ecosystem requires more than deploying technology. It also depends on developing human resources capable of understanding, creating, and applying technology to meet national needs.
Digital transformation should not be measured by the amount of technology adopted, but by people’s ability to turn technology into solutions and economic value.
Her view aligns with Deputy Communication and Digital Affairs Minister Nezar Patria, who said Indonesia must move beyond being merely a technology user and become a technology creator.
Strengthening digital talent alongside digital infrastructure will provide the foundation for Indonesia to generate innovation rather than remain primarily a market for global technology.
Indonesia’s large population may attract technology companies. However, countries capture greater economic value when they control more of the technology value chain, from knowledge creation and technology development to innovation and high-value products.
Building talent
Digital talent development begins long before people enter the workforce. Its foundation is built as children learn, access the internet, and develop responsible digital habits.
Students currently in school are likely to begin their careers when AI has become an integral part of nearly every sector of the economy.
Preparing them requires more than teaching today’s technologies. They must also develop the ability to continue learning as technology evolves throughout their careers.
Schools therefore play a critical role because digital capability is determined not by device ownership but by how students understand, use, and respond to technology from an early age.
Digital education should equip students to evaluate information critically, protect personal data, understand digital ethics, and use technology safely and responsibly.
These capabilities provide the foundation for ensuring technology creates opportunities rather than new risks.
Through the Digital-Savvy Schools Declaration, the Communication and Digital Affairs Ministry (Kemkomdigi) is encouraging schools to foster safe and responsible digital cultures.
The initiative is reinforced by Government Regulation No. 17 of 2025 on Electronic System Governance for Child Protection, commonly known as the PP TUNAS regulation.
Talent development must continue through higher education and into the workplace.
Kemkomdigi’s Paham AI program, developed with education partners, aims to improve AI literacy among teachers, students, and the broader public while promoting safe, responsible, and ethical AI use.
At a more advanced level, the AI Talent Factory, developed with universities, the Japan International Cooperation Agency (JICA), and the State-Owned Enterprises Management Agency (BP BUMN), aims to produce AI professionals capable of meeting industry demand and supporting national