Indonesia is emerging as a regional powerhouse in artificial intelligence, with the potential to generate $366 billion in economic value by 2030. This figure represents 12% of the country’s projected GDP and places Indonesia ahead of Thailand and Malaysia in Southeast Asia’s AI race. But as Minister of Industry Agus Gumiwang Kartasasmita emphasizes, realizing this potential depends more on people and processes than on algorithms alone.
Key Facts & Background
- Indonesia’s AI economic potential is estimated at $366 billion by 2030, or 12% of national GDP, according to AT Kearney.
- ASEAN’s average AI contribution is projected at 13% of member countries’ GDP, with Indonesia leading the region.
- Thailand and Malaysia follow with AI potentials of $117 billion and $115 billion, respectively.
- Boston Consulting Group’s AI Radar Survey 2025 finds that:
- Human capital and business processes account for 70% of successful AI implementation.
- Technology contributes 20%, and algorithms just 10%.
- Minister Agus stresses the importance of:
- Strengthening digital talent across manufacturing and industrial sectors.
- Implementing change management to align digital transformation with productivity goals.
- Updating business strategies to match evolving technological capabilities.
- The remarks were delivered at the Kumparan AI For Indonesia event in Jakarta on October 23, 2025.
Strategic Insights
Indonesia’s AI trajectory is not just a technological evolution—it’s a strategic economic transformation. With the highest projected AI-driven GDP contribution in Southeast Asia, Indonesia stands at a pivotal moment to redefine its industrial competitiveness. However, the path to realizing this $366 billion opportunity is not paved by technology alone. As highlighted by both AT Kearney and BCG, the real drivers of AI success lie in human readiness, organizational agility, and process innovation.
This insight shifts the focus from hardware and software to talent development and institutional reform. Indonesia must invest heavily in digital literacy, STEM education, and vocational training to build a workforce capable of designing, deploying, and scaling AI solutions. Equally critical is fostering a culture of innovation within industries—where experimentation, cross-functional collaboration, and adaptive leadership become the norm.
The emphasis on change management reflects a deeper understanding of transformation dynamics. AI adoption often fails not due to technical limitations, but because organizations resist altering legacy workflows and decision-making structures. By embedding change management into industrial policy, Indonesia can ensure that AI initiatives translate into measurable gains in productivity, efficiency, and global competitiveness.
Moreover, updating business strategies to align with AI capabilities is essential. This includes rethinking supply chains, customer engagement models, and product development cycles. Industries must move from reactive automation to proactive intelligence—where data-driven insights inform strategic choices and unlock new revenue streams.