Indonesia Artificial Intelligence
According to Indonesia’s Coordinating Ministry for Economic Affairs (CMEA), Indonesia is the largest digital economy in the ASEAN region. Therefore, it is strategically positioning Indonesia to harness Artificial Intelligence (AI) in Southeast Asia. Putting in place the necessary legal corridors for the responsible advancement of AI would be another breakthrough contribution from Indonesia to the ASEAN region, following Indonesia’s successful stint hosting the 2023 ASEAN Summit, which also showcased the Digital Economy Framework Agreement (DEFA). Based on data from Kearney, AI’s Indonesia contribution to GDP will reach $366 billion U.S. dollars by 2030. Based on research from Mekari Group, 62% of Indonesian companies will adopt AI.
In December 2023, the Indonesian government issued two sets of ethical guidelines on the use of artificial intelligence. The first was Ministry of Communication and Informatics (KOMINFO) under Circular Letter No. 9 of 2023 on “AI Ethical Guidelines,” issued on December 19, 2023. The second was from the Financial Services Authority (OJK), called “Ethical Guidelines on Responsible and Trustworthy AI in the Financial Technology Industry,” which was published on the OJK website on December 4, 2023 (this was officially launched in November 2023 during the fifth Indonesia Fintech Summit & Expo/IFSE in 2023). Digital Technology, including AI, has been hailed as a critical component of Indonesia’s national development to reach Indonesia Emas 2045 or in English named “The Golden Indonesia 2045.” By 2045, 100 years after its independence, Indonesia is projected to be the world’s 4th largest economy (by GDP PPP) and the 8th largest economy by real GDP.
Ministry of Communication and Informatics (KOMINFO) has decided to issue a circular letter rather than a stronger regulation on AI with the justification that Indonesia is still in the early stages of exploration and innovation of AI adoption. Therefore, the measures taken regarding AI utilization will be focused more on supervision and governance to reduce potential risks. In terms of regulations of a more binding nature, Indonesia currently has the Information and Electronic Transactions Law and the Personal Data Protection (PDP) Law.
The AI FinTech ethical guidelines were launched by OJK together with four fintech associations in Indonesia, namely the Indonesian Fintech Association (AFTECH), the Indonesian Sharia Fintech Association (AFSI), the Indonesian Fintech Lending Association (AFPI), and the Indonesian Crowdfunding Services Association (ALUDI). The purpose of these guidelines is to mitigate the risk of AI use within the fintech industry; thus, AI could provide benefits for the development of fintech sector and mitigate future risks.
For more information, please kindly contact: Commercial Specialist Ms. Yulie Tanuwidjaja (Yulie.Tanuwidjaja@trade.gov)