The Ministry of Communication and Digital (Komdigi) has joined forces with global technology giant, Google, through the Startup Accelerator Southeast Asia-Indonesia AI Focus program. This collaboration marks the government’s efforts to accelerate the development of AI-based startup ecosystems in Indonesia, aligning with Indonesia’s vision to become a digital powerhouse in Southeast Asia. The Startup Accelerator Southeast Asia-Indonesia AI Focus program is believed to provide a platform for local startups to receive guidance, access to cutting-edge Google technology, and a global network. The focus on AI is highly relevant due to its significant potential in various sectors such as healthcare, education, finance, and the creative industry.
The Minister of Communication and Digital, Meutya Hafid, expressed her confidence in Indonesia’s collaborative ecosystem, supported by strong policies on top-notch talent and advanced technology, which positions Indonesia as a hub of AI innovation in Southeast Asia. She also highlighted Google’s investment in developing an AI-ready data center in Indonesia, projected to contribute around Rp1,400 trillion or approximately 88 billion US dollars to the national economy in the next five years. Furthermore, she mentioned that by 2025, the national digital economy is expected to contribute 130 billion US dollars, a 45% increase from the previous year.
In addition, Indonesia is currently a key driver of the digital economy in the ASEAN region, with digital transactions in Indonesia reaching 263 billion US dollars in 2024, accounting for a third of the total gross merchandise value (GMV) of Southeast Asia. In the startup sector, Indonesia recorded 2,566 active startups in 2024, almost a 50% increase from 2020, with an average growth of over 200 new startups every month. Regarding regulations, she emphasized that the government has a series of regulations as the foundation, including the Electronic Information and Transactions Law (UU ITE), the Personal Data Protection Law (UU PDP), and the Regulation on Electronic System Governance for Child Protection (PP Tunas). The government also supports human resource development through the Digital Talent Scholarship program to nurture digital innovators with integrity, adaptability, and global insight. Additionally, Indonesia has established the Indonesian National Work Competency Standards (SKKNI) in the field of AI to ensure that national digital talent is sensitive to ethical issues such as algorithmic bias and data privacy.
