Over the past five years, Indonesia's technology sector has experienced spectacular growth, in part because of a growing middle class and widespread smartphone use that ease e-commerce. Indonesia's artificial intelligence (AI) and AI-enabled firms have flourished thanks to the country's roughly 200 million active internet users, with many of them achieving "unicorn" status as startups valued at over $1 billion, luring foreign investors, and expanding operations abroad. The "digital archipelago" is poised for an AI boom, but closing the gap between Indonesia's AI promises and realities depends heavily on human capital.
Indonesia's government is attempting to use AI to develop a stronger economy and a more technologically robust society, as detailed in our most recent research from Georgetown University's Center for Security and Emerging Technology (CSET). Indonesia is striving for swift and thorough AI integration in both its public and private sectors, particularly in health care, education and research, and transportation. Indonesia is the second Association of Southeast Asian Nations (ASEAN) country to release a national AI policy.
When it came to Southeast Asian nations, Indonesia came in third for the quantity of academic-corporate peer-reviewed AI articles in 2019. In Southeast Asia right now, Indonesia has the most scientific papers on AI. By 2030, AI is projected to increase the nation's GDP by $366 billion at the current rate. Indonesia is undoubtedly making strides toward becoming a significant AI powerhouse in the region. Indonesia's government, which aspires to be in charge, will work to foster an atmosphere favorable for the growth and integration of AI.
Most young people in Indonesia today only complete high school, work in blue-collar or entry-level service occupations, and earn an average of $150 per month. The lowest among the questioned ASEAN states in 2018 was Indonesia, where 9.3 percent of those over 25 had a bachelor's degree. What's more worrisome is that Indonesia has gotten worse recently. The nation's 19.4% of tertiary science and engineering graduates in 2020 placed it 75th on the Global Innovation Index, significantly lower than its rankings of 68th in 2019 and 54th in 2018. Indonesia placed 125th out of 131 countries in the area of "knowledge workers," or high-level employees who use analytical expertise to produce products. This clearly shows a lack in locating advanced talent for innovation.
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