Kadin Pushes for AI Utilisation to Strengthen SMEs

Artificial intelligence will only succeed to the extent that we mobilise our friends in UMKM. Jakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has stressed the importance of utilising artificial intelligence (AI) to strengthen the micro, small, and medium-sized enterprise (UMKM) sector as the backbone of the economy. Kadin General Chairman Anindya Bakrie in Jakarta on Tuesday stated that the use of AI must be viewed as a strategic opportunity to drive economic growth while creating jobs. He explained that to achieve an economic growth target of 5-6 per cent, Indonesia needs to create millions of jobs. On the other hand, the continuously increasing number of university graduates also requires optimal absorption of the workforce. “So there are two ways of thinking: we see this as just a challenge, or we see it as potential,” Anindya said. According to him, the best approach to developing AI in Indonesia is to focus on applications relevant to domestic needs. He assessed that various global AI technologies and software are already available, but they need to be adapted to the characteristics of problems and opportunities in the country. Furthermore, Anindya emphasised that the success of AI implementation heavily depends on UMKM involvement, given that around 97 per cent of Indonesia’s workforce comes from that sector. “AI will only succeed to the extent that we mobilise our friends in UMKM,” he said. He also highlighted the investment trends entering Indonesia. In the first quarter of 2026, total investment was recorded at Rp498.8 trillion. However, most of that investment does not come from large projects, but rather small-scale investments with an average of around Rp1.5 billion per project. In addition, Anindya assessed that service-based sectors (service industry) have great potential to be impacted as well as to develop through AI adoption. Some sectors considered most promising include finance, health, and education. “The focus is definitely on finance, but health and education are also very important. Because the service industry is the easiest to disrupt, but also the easiest for innovation,” he said.