Antara News·Indonesia·Wednesday, October 21, 2026 at 10:45 AM UTC

Indonesia positions artificial intelligence as new growth engine

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Ni Putu Putri Muliantari, Yashinta Difa

Denpasar, Bali (ANTARA) - Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto has positioned artificial intelligence (AI) and the digital economy as primary drivers for future national development, aiming to propel economic growth up to 8 percent by 2029.

"The digital economy and artificial intelligence are these new engines of growth," Airlangga remarked virtually during the ‘AI Impact Summit: Sovereign AI for Indonesia 2045,’ held as part of Bali Tech Week in Denpasar, on Wednesday.

He noted that, amidst global uncertainty, Indonesia’s economy has remained resilient, recording a growth rate of 5.29 percent in the second quarter and 5.45 percent for the first half of the year.

The government has set a target for economic growth to reach between 5.8 and 6.5 percent by 2027, with an ambition to surge to 8 percent by 2029—requiring new sources of growth anchored by investment, productivity, and technological mastery.

Market projections underscore the immense potential of the sector.

Goldman Sachs estimates global AI investment will exceed US$1 trillion by 2026, while Indonesia’s domestic digital economy is projected to reach US$100 billion–US$140 billion this year.

Furthermore, the national AI economy could skyrocket to between US$360 billion and US$400 billion by 2030.

Airlangga emphasized that AI must act as a catalyst for productivity, industrial competitiveness, MSME strengthening, high-value job creation, and improved public services.

He added that technological sovereignty means strengthening domestic talent, data, infrastructure, and technology while remaining open to global investment and partnerships.

Progress toward this sovereignty was marked by the launch of initiatives like AI.ID, the 'Korika Claw' AI agent, and the 'Korika Token' during the summit.

To guide this transformation, four key priorities have been established.

First, the infrastructure and energy priority focuses on expanding data center capacity alongside PLN’s 2025–2034 Electricity Supply Business Plan (RUPTL) and a 100 GWh peak-capacity solar energy program.

Second, the digital talent priority aims to develop 9 million digital talents by 2030 through education, scholarships, up to 200 percent super tax deductions, and training 15,000 chip-design engineers over three years.

Third, AI adoption involves leveraging 229 million internet users and 22 million digitized MSMEs to enhance manufacturing supply chains and public services.

Finally, global collaboration centers on leveraging Indonesia's role in the World Artificial Intelligence Cooperation Organization, which could unlock US$8 billion–US$12 billion in investments, bolstered by "Project NUSA" in cooperation with Singapore.

"I hope Project NUSA will drive AI-based growth, leading to improved services, more job opportunities and new revenue streams as we move toward a 'Golden Indonesia 2045'," Airlangga concluded.

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