The Economic Impact of Generative AI: The Future of Work in Indonesia

The Economic Impact of Generative AI: The Future of Work in Indonesia

Artificial Intelligence (AI) holds immense promise for Indonesia, which has the largest digital economy in Southeast Asia. The AI ecosystem in Indonesia has been growing rapidly and the Indonesian government has consistently supported digital investments in the country including adopting the National Strategy on AI 2020-2045 outlining a plan to develop the necessary infrastructure and talent pool, recommending the formation of a data ethics board to oversee AI development, as well as creating regulations and national standards for AI innovation.

Against this background, technology industry leaders have noted that AI is at an inflection point, with powerful new models like generative AI being introduced, and innovative new applications increasingly being used across society and capturing the imaginations of consumers. Generative AI has opened the door to more possibilities and is expected to play a role in tasks requiring creativity, curiosity, and looking at information differently. Therefore, the potential of generative AI lies in its ability to enable people to achieve greater creativity, effectiveness, and efficiency in their work.

This report seeks to contribute to this discussion by providing early insights and raising awareness of the economic opportunities that generative AI can create, and what it means for local industries and workforce readiness.

This study estimates that generative AI can potentially unlock USD243.5 billion of productive capacity in Indonesia, equivalent to close to one-fifth of GDP in 2022. Indonesia has an opportunity to better position its businesses and workers to unlock the potential of generative AI, as well as manage emerging risks. Policymakers will need to ensure that they have a clear national vision for AI, and that it focuses on preparing its workforce and establishing an enabling policy environment for AI adoption, including to answer the question “what is required to achieve the aspirations of a brighter future enabled by generative AI?

Download The Economic Impact of Generative AI: The Future of Work in Indonesia below:

Download the report in English

Unduhkan laporan dalam Bahasa Indonesia

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