Indonesia’s digital governance framework is at a critical juncture as it navigates the responsible deployment of artificial intelligence (AI). A joint report by the Communications and Digital Ministry and the United Kingdom highlights significant regulatory gaps, particularly in guiding AI’s ethical use and ensuring effective institutional coordination. The report emphasizes that enforcement of the Personal Data Protection (PDP) Law and the One Data Initiative remains weak, impeding efforts to build a cohesive national AI strategy.
One of the primary challenges facing Indonesia’s digital economy is infrastructure disparity. Approximately 57 million people—almost 20% of the population—lack reliable internet access, creating a digital divide that hampers equitable AI development. “Gaps in connectivity continue to create an uneven playing field,” the report states, underscoring the need for targeted investments to bridge this divide.
Beyond infrastructure, Indonesia faces a profound talent shortage. The country needs an estimated 9 million additional tech professionals by 2030, as detailed in the joint Readiness Assessment Methodology (RAM) report developed with UNESCO. The fragmented nature of AI innovation—spread unevenly across government, academia, and private enterprise—further complicates progress. The absence of clear institutional mandates and insufficient government facilitation hinders collaboration along the entire AI value chain, from R&D to commercialization.
The government intends to leverage this report as a foundation for a comprehensive national AI roadmap, expected to be unveiled for public consultation in August. Stakeholders from industry, academia, and civil society have contributed to shaping this strategy. Deputy Minister Nezar Patria indicated that the upcoming roadmap would focus on identifying key building blocks necessary for meaningful AI adoption, as well as exploring use cases, challenges, and impacts across six critical sectors: e-commerce, banking and finance, creative economy, healthcare, education, and sustainability.
Indonesia is witnessing a surge in AI investment; national spending has increased nearly fourfold from IDR 1.38 trillion (approximately US$90.37 million) in 2022 to an estimated IDR 5.36 trillion by 2027. However, this surge has not yet translated into uniform sectoral readiness. Some sectors, such as e-commerce and finance, are more advanced in AI adoption, whereas others—particularly healthcare and sustainability—remain in pilot stages. The report attributes these disparities to six key building blocks: digital services, governance, infrastructure, talent, ecosystem, data governance, and ethical and inclusive AI.
Regarding ethical AI, the report notes that despite the issuance of Circular Letter No. 9/2023 by the Ministry—which outlines core ethical principles—enforcement remains weak. The lack of clear institutional roles and sectoral adaptation hinders the practical application of these principles. To address this, the government is developing a legal framework to regulate AI across sectors, building on guidelines issued in late 2023 by former Minister Budi Arie Setiadi, which served as interim ethical standards.
Overall, Indonesia’s journey toward a robust and ethically guided AI ecosystem hinges on strengthening regulatory frameworks, closing infrastructure gaps, cultivating talent, and fostering cross-sector collaboration—elements that will be vital for realizing the country’s full technological and economic potential.
July 29, 2025, The Jakarta Post(https://www.thejakartapost.com/business/2025/07/29/ri-struggles-with-regulatory-infrastructure-gaps-in-ai-adoption.html)