Indonesia Leads Southeast Asia in AI Adoption Growth

Rapid Expansion in AI Sector

Indonesia has witnessed a remarkable 127% growth in Artificial Intelligence (AI) adoption during the first half of 2025, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. This significant surge positions Indonesia as the highest AI adopter in Southeast Asia and fourth in Asia overall. The rapid growth has been accompanied by substantial investment inflows, with $91 million flowing into the Indonesian AI sector during the same period.

Economic Impact and Future Projections

The investment figure translates to approximately Rp 1.52 trillion (based on an exchange rate of Rp 16,729/USD). Airlangga highlighted that this investment trend underscores Indonesia's potential as a major AI hub in the region. Research indicates that Indonesia's AI market is poised to reach an impressive $70.6 billion in value. The minister shared these insights during a statement at Jakarta Creative Hub on December 18, 2025.

Strategic Implications

The AI boom in Indonesia represents a significant shift in the country's economic landscape. As noted by Airlangga, AI is not merely a technological trend but a new engine for economic growth and enhanced national competitiveness. The government's recognition of AI's potential signals a proactive approach to leveraging technology for economic development. As the country continues to attract investment in this sector, it is likely to strengthen its position in the regional tech ecosystem.