AI and Digitalization Poised to Drive Indonesia's Economic Growth

Tempo07-10

TEMPO.CO, Jakarta - Coordinating Minister for the Economy, Airlangga Hartarto, stated that digital transformation and artificial intelligence will become the new engine of economic growth in Indonesia...

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He pointed out that new sources of growth are needed as the national economic growth has remained at around 5 percent over the past seven years.\"What is the next economic growth machine?The answer is digital transformation,\" said Airlangga during the KADIN Diplomatic Economic Breakfast event at the Coordinating Ministry for the Economy office in Central Jakarta, on Friday, July 10, 2026.He says that Indonesia has overcome various crises in recent decades, including the 1998-1999 economic crisis, the 2008 global financial crisis, and the COVID-19pandemic. 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He pointed out that new sources of growth are needed as the national economic growth has remained at around 5 percent over the past seven years.\"What is the next economic growth machine? The answer is digital transformation,\" said Airlangga during the KADIN Diplomatic Economic Breakfast event at the Coordinating Ministry for the Economy office in Central Jakarta, on Friday, July 10, 2026.\nHe says that Indonesia has overcome various crises in recent decades, including the 1998-1999 economic crisis, the 2008 global financial crisis, and the COVID-19 pandemic. These upheavals can be overcome through government policies that maintain economic stability.\n\n\n\n\n\n\n\n\n\nCurrently, Airlangga noted that new challenges are emerging due to increasing global uncertainty resulting from geopolitical conflicts and the rapid development of AI technology. In line with President Prabowo Subianto's directive, the government is pushing for technology that enhances national self-reliance in food, energy, and digital transformation.Airlangga said that digital transformation will be the key to Indonesia's next economic growth. This sector is considered advantageous as it does not depend on the global logistics chain, allowing the digitalization process to proceed more rapidly.He believes that AI will be a crucial foundation for Indonesia's future economic growth. However, its use requires an adequate ecosystem that includes data availability, hyperscale data centers, computing infrastructure, and the semiconductor industry.Airlangga stated that the government is also broadening international cooperation to support the development of the AI ecosystem. In addition to collaborating with the UK on developing next-generation semiconductor chips, Indonesia is working with the United States and several other countries on AI.Airlangga conveyed that the new government will attend the PACSILICA forum and participate in the World AI Cooperation Organization meeting in Shanghai next week. The goal is to learn about global AI developments and strengthen international collaboration. For him, digital transformation and AI mark the beginning of a new engine of Indonesia's economic growth.Read: B50 Seen Supporting Rupiah, Inflation Through Forex SavingsClick here to get the latest news updates from Tempo on Google News","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.46.0","shortVersion":"4.46.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2650377821","isCrawlerRequest":true}