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Jakarta’s Indonesia AI Development Gains Momentum
Indonesia Seeks to Reduce Dependence on Chinese Technology as It Expands Semiconductor IndustryIndonesia is making strides in Indonesia AI development, with young developers creating a homegrown system. Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, confirmed that the project is gaining momentum.
These experts will present their work to President Prabowo Subianto in two weeks. If approved, this could mark a major step in the country’s AI future.
“This is a serious effort,” Pandjaitan said during the Indonesian Economic Summit 2025. “We have skilled people working on it.”
The AI platform will be available in both Indonesian and English. Its intended use is still unclear, but officials suggest it could support a broad range of digital services.
Pandjaitan also acknowledged that AI development is expensive. He noted that the use of open-source software helps, but a significant budget is still required.
Indonesia’s AI Readiness Gains Recognition
Indonesia has been getting international attention for its AI efforts. Deputy Minister of Communication and Digital Affairs, Nezar Patria, shared the country’s progress at the AI Action Summit in Paris.
Indonesia is the first Southeast Asian nation to adopt UNESCO’s AI Readiness Assessment. The evaluation, completed in 2024, provided several recommendations for advancing AI development.
The UN agency suggested forming a national AI governing body, improving collaboration between sectors, and expanding AI-related education. It also advised Indonesia to ensure equal access to AI opportunities beyond Java, so the technology benefits people across the country.
Patria said the response to Indonesia’s participation in the assessment had been positive. “Our involvement has been well received,” he told reporters.
Aiming for AI Like DeepSeek and ChatGPT
Pandjaitan believes Indonesia should develop its own AI system on the level of DeepSeek and ChatGPT. “Why not study DeepSeek?” he asked at The Economic Insights 2025 event. “It’s not always expensive.”
He pointed out that Indonesian developers have already created successful digital platforms. These include PeduliLindungi, Simbara, and e-Katalog, which support public services and government operations.
“If we can develop those, why can’t we build an AI system?” Pandjaitan asked.
AI could be a game-changer in many industries. However, it requires long-term investment and a strong digital workforce.
GovTech Plans for 2025
AI is just one part of Indonesia’s digital transformation. The DEN has outlined four key areas for improving government technology (govtech).
- Revenue Optimization: Digital tools like Coretax and Simbara aim to improve tax collection and non-tax state revenue.
- Efficient Spending: The e-Katalog 6.0 system will introduce real-time tracking, automated needs analysis, and cross-ministry integration.
- Better Public Services: Systems for civil administration, passports, education, and healthcare aim to cut bureaucracy and improve user experience.
- Simplifying Business: The Online Single Submission (OSS) system is expected to make business registration easier.
President Prabowo wants full integration of these systems by August 2025. That leaves little time for developers to finalize their work.
Challenges in AI Development
Building AI isn’t just about coding. It requires data, infrastructure, and policies that support ethical and secure AI use. Indonesia will also need to address issues related to data privacy, cybersecurity, and digital access.
Some experts warn that an AI system of this scale could take years to develop. Others believe Indonesia is in a good position to start, especially with growing government support.
The next steps will depend on funding and collaboration. The involvement of private companies and universities could speed up the process.
The country has taken the first steps. Now, the real challenge is turning ideas into reality.
