Indonesia's AI Adoption: Opportunities and Challenges

Rising AI Usage in Indonesia

Indonesia has emerged as a significant player in the global AI landscape, with 1.4 billion accesses ranking third behind the United States (5.5 billion) and India (2.4 billion) according to the Indonesia Digital Economy Outlook 2025. This rapid adoption across various sectors has sparked both excitement about potential economic benefits and concerns about job displacement.

Economic Potential of AI in Indonesia

The Coordinating Minister for Economic Affairs has projected that AI could contribute between US$360 billion to US$600 billion to Indonesia's economy. This represents more than a quarter of the country's current economic size of approximately US$1.4 trillion. Such significant potential contribution has made AI a focal point for industrial and business development in Indonesia.

Job Market Implications

The growing capability of AI is raising concerns about job security, particularly in fields involving repetitive tasks, high precision, and logical processing. Professions such as accounting, legal services, and other technical roles are potentially at risk as AI systems become more sophisticated. Historical parallels can be drawn with the introduction of steam engines in the 18th century, which also sparked fears of widespread job loss.

Sectoral Impact

AI's impact is expected to be most pronounced in sectors where tasks are repetitive, require high accuracy, and follow established logical patterns. The accounting profession, in particular, is under scrutiny as AI systems demonstrate increasing capability in financial processing and analysis. However, the overall economic benefits are expected to create new opportunities alongside potential job displacement.