Economic Impact Report: Google’s role in helping Indonesia build a safe and productive society through digital tools

Economic Impact Report: Google’s role in helping Indonesia build a safe and productive society through digital tools

The Indonesian Government has launched the National Long-Term Development Plan (RPJPN) 2025-2045 to realize its vision of a Golden Indonesia 2045.[1] This vision aims for a prosperous Indonesia that is technologically advanced, focusing on progressing Indonesia towards becoming a developed economy by 2045 while reducing poverty rates and narrowing the income gap. Key objectives under the RPJPN’s Golden Indonesia 2045 vision include improving productivity and discipline through acquiring knowledge and technology, as well as developing a digitally skilled population with mastery in science and technology.[2]

Our study found that Artificial Intelligence (AI) notably holds great potential in accelerating Indonesia’s goal towards more productive economic growth. The adoption of AI can help Indonesia build a strong digital economy that contributes to productive growth, unlocking at least IDR 2,612 trillion in economic benefits for businesses in 2030.

The Indonesian Government has identified four key focus areas for harnessing the benefits of AI.[3] This report examines how digital skills and cybersecurity can be two enablers that can address the key focus areas and help Indonesia harness opportunities from AI. This would be done by narrowing Indonesia’s digital talent gap through digital skills training and reducing annual cybersecurity losses through a combination of government initiatives, cybersecurity investments, and digital literacy programs.

Google is already delivering significant benefits to Indonesian businesses and households through enhancing operations, increasing revenues and providing access to easy-to-use and secure tools. In 2022, Google’s AI-powered products and solutions enabled businesses and households in Indonesia to unlock IDR 797 trillion in economic benefits and supported over 1.5 million jobs.

The Android and Google Play ecosystem also enable a flourishing app economy in Indonesia, supporting more than 10,000 local app developers on Google. IDR 1.5 trillion of revenue benefits were gained by Indonesian developers from Google Play in 2022. In addition, 162,000 jobs were also supported through the Android app economy.

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Download report in Indonesian

View methodology here

[1] The Jakarta Post (2023), “President Jokowi launches final phase of RPJPN 2025-2045.” Available at: https://www.thejakartapost.com/business/2023/06/19/president-jokowi-launches-final-phase-of-rpjpn-2025-2045.html#google_vignette
[2] Cabinet Secretariat of the Republic of Indonesia (2023), “President Jokowi Unveils Three Issues Towards Golden Indonesia 2045”. Available at: https://setkab.go.id/en/president-jokowi-unveils-three-issues-towards-golden-indonesia-2045/
[3] Asia Society (n.d.), “Indonesia: Artificial Intelligence”. Available at: https://asiasociety.org/policy-institute/raising-standards-data-ai-southeast-asia/ai/indonesia

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