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Indonesia is making strides in embracing the era of artificial intelligence technology, with the Ministry of Communication and Information leading the charge. In December 2023, the ministry issued Circular Letter Number 9, outlining ethical guidelines for AI. Deputy Minister of Communication and Information Nezar Patria emphasised that the government aims to foster innovation in AI technology while ensuring responsible usage through these guidelines.
Speaking at the Ministry of Communication and Information Office in Central Jakarta on October 2, 2024, Deputy Minister Patria highlighted that the upcoming regulations will prioritise innovation principles.
“We do not want to hinder emerging innovations,” he stated, underscoring the importance of balancing regulatory frameworks with the need to support technological advancement.
The government is committed to monitoring AI technology adoption in Indonesia while also aligning its policies with global developments. For instance, discussions at a recent UNESCO forum in Slovenia focused on AI ethics, reflecting a global trend towards responsible AI implementation.
Patria noted that various sectors worldwide, including health, transportation, and financial services, are increasingly adopting AI technologies for tasks ranging from stock market projections to improving customer services. As AI usage becomes more prevalent across sectors, the Indonesian government is preparing guidelines for developers and users of AI-based applications.
“The principle is to maximise the benefits and minimise the risks,” he explained, stating that ethical guidelines will serve as a reference for AI developers to ensure their innovations align with established ethical standards.
The AI Ethics Circular underscores inclusivity, humanity, security, accessibility, personal data protection, and sustainable environmental development. A crucial element of these guidelines is the recognition of intellectual property rights, which is essential for attracting foreign investors interested in developing AI products in Indonesia. “Investors will look for clarity in regulations before entering the Indonesian market,” Patria pointed out.
Currently, Indonesia has a robust regulatory framework designed to mitigate the risks associated with AI. This includes Law Number 1 of 2024, which amends the Electronic Information and Transactions Law, Law Number 27 of 2022 on Personal Data Protection, and Government Regulation Number 71 of 2019 concerning Electronic Systems and Transactions. While these regulations do not specifically address AI, they are structured to mitigate potential negative impacts stemming from AI development.
OpenGov Asia reported that Indonesia’s Minister of Communication and Informatics, Budi Arie Setiadi, has invited investors in the ICT sectors to consider Indonesia as a prime destination for AI investment. This appeal is backed by impressive data showing AI’s contribution to the ASEAN economy soaring from US$ 1 billion in 2020 to $11 billion in 2022.
With around US$ 22 billion invested in Indonesia’s digital sector in 2023 and projections indicating the market could reach US$ 210 billion to US$360 billion by 2030, Minister Setiadi highlighted AI’s potential to drive growth across various sectors, including education and healthcare.
He acknowledged challenges such as uneven infrastructure but stressed that collaboration within Indonesia’s digital ecosystem is essential for overcoming these hurdles and positioning the country as a leader in the digital landscape.
Deputy Minister Nezar Patria highlighted the importance of collaboration among local stakeholders to establish policies that harness AI’s potential ethically, focusing on inclusion, transparency, and human rights. Initiatives like the Artificial Intelligence Industry Research and Innovation Collaboration (KORIKA) aim to facilitate discussions and innovations in AI.
Deputy Minister Nezar Patria’s commitment to prioritising innovation principles in AI regulation reflects Indonesia’s proactive stance in navigating the complexities of AI technology. By establishing a comprehensive set of ethical guidelines and regulations, the government aims to create a conducive environment for AI innovation while safeguarding the interests of its citizens and businesses.
