Indonesia’s Approach to Ethical AI Implementation

The proliferation of artificial intelligence (AI) technology has experienced rapid and widespread growth across various sectors. This phenomenon reflects massive adoption, making it easier for humans to meet their diverse needs. In this context, the use of artificial intelligence (AI) demands the existence of good guidelines and ethics for humans, thus emphasising the importance of responsible and ethical practices in harnessing this technology.

In Indonesia alone, the Ministry of Communication and Information Technology has supported using cutting-edge technology to compete globally. The Vice Minister, Nezar Patria, stated that the Circular Guidelines (SE) for AI Usage would help the innovations of the nation’s youths. According to him, Indonesians have made numerous discoveries in various industries, but only a few of them have integrated AI into their findings.

The Thick Blood Smear Microphotograph CAD Malaria system is an example of such integration. This is a breakthrough in the healthcare industry that focuses on the diagnosis of Malaria, which is prevalent, especially in the eastern part of Indonesia. In this innovative system, artificial intelligence significantly contributes to the efficiency of diagnostic processes, providing more accurate results and enabling faster and more effective treatment for patients infected with Malaria. Using three diagnostic methods to identify plasmodium parasites in the blood facilitates healthcare providers in obtaining comprehensive information and insights into malaria patients.

According to Nezar Patria, the guidelines for using AI represent a strategic step to ensure the continued relevance of this latest technology ecosystem, aligning with global innovation growth. Given its significant impact on international technological and economic development, he emphasised the importance of keeping pace with global developments in AI usage.

Nezar Patria emphasised that AI policies must always align with global dynamics so that Indonesia can ensure its optimal position in developing and utilising this technology. Their main focus is on determining Indonesia’s positioning in the context of AI development and utilisation, which will directly impact the sectors to be developed domestically.

Additionally, Nezar Patria highlighted that aligning with global developments in AI usage can open up broader collaboration opportunities between Indonesia and other countries. This collaboration may involve exchanging knowledge, experiences, and resources that will enrich Indonesia’s perspective in facing the challenges and opportunities arising from the development of AI technology.

At the same time, Nezar Patria discussed issues related to artificial intelligence and ethical values. There, he gathered several suggestions and recommendations from stakeholders regarding the development and use of AI, emphasising that the ecosystem’s regulations should be transparent, accountable, and fair while adhering to human-centric and explainability principles.

Nezar Patria highlighted the need for a comprehensive response to the potential challenges and risks of artificial intelligence (AI). In this framework, the government, developers, and AI providers from the public and private sectors need to support educational efforts to enhance understanding of AI, especially given its significant social implications.

The Circular on AI Ethics is considered a crucial instrument to provide comprehensive guidance in addressing regulatory compliance and responsibility needs among AI developers or providers. Nezar Patria emphasised that appropriate regulations must be implemented to provide clarity and certainty. This is to ensure that the Circular on AI Ethics can be a ready-to-use guide for stakeholders in the AI ecosystem, particularly in responding to the evolving dynamics of AI.

Nezar Patria asserted that the Circular on AI Ethics is not just a normative document but also a concrete step to enforce regulatory compliance and assume social responsibility. With clear regulations, stakeholders in the AI ecosystem can effectively adopt this guide, making it a practical guideline ready for use in developing and utilising AI technology.

“Appropriate regulations will provide legal certainty and a solid foundation for AI industry players. Thus, the Circular on AI Ethics becomes a normative instrument and an effective tool to achieve the compliance and responsibility required in using artificial intelligence,” he concluded.

Indonesia’s Commitment to Child Safety in the Digital Age

In the digital realm, children encounter an abundance of online information and content. In light of this, Nezar Patria, Deputy Minister of the Ministry of Communication and Information (Kominfo), emphasises the critical need for collective action among stakeholders to protect children from online risks and thwart digital predators’ attempts.

Since 2009, Indonesia has embraced the International Telecommunication Union’s (ITU) guidelines for safeguarding children in the online environment, with updates made in 2020. The guide is directed at four groups: children, parents/guardians/educators, industry, and policymakers.

These guidelines can be used to establish secure, participatory, inclusive, and age-appropriate digital environments for children, Patria stated during the opening of the Artificial Intelligence (AI) Public Discussion Series in South Jakarta.

There are numerous threats that exist in the online realm concerning children’s internet usage, including exposure to negative content, cyberbullying, and data leakage. UNICEF data reveals that this year, there will be 175,000 new child internet users every day, equating to one child joining the online community every second. In Indonesia alone, a staggering 30 million use the internet.

Patria stressed the crucial role of AI, emphasising the importance of implementing automatic content filters and moderation to counteract negative content. AI can be used to detect cyberbullying through security measures and by recognising the patterns of cyberbullying perpetrators. It can also identify perpetrators of online violence through behavioral detection in the digital space as well as enhance security and privacy protection. Moreover, AI can assist parents in monitoring screen time, ensuring that children maintain a balanced and healthy level of engagement with digital devices.

Conversely, the presence of generative AI technology, such as deepfake, enables the manipulation of photo or video content, potentially leading to the creation of harmful material with children as victims. Patria urged collaborative discussions among all stakeholders involved in related matters to harness AI technology for the advancement and well-being of children in Indonesia.

He highlighted UNESCO’s Recommendation on the Ethics of Artificial Intelligence, emphasising it as a reference for safeguarding children in the digital realm. According to him, this recommendation includes discussions on the implications of AI use on children and outlines how AI governance can uphold the fundamental rights of children.

The upcoming generation, having been exposed to AI from an early age, is poised to become highly active AI users in the next 10-15 years. Hence, it is important to engage all stakeholders in crafting guidelines and addressing the potential adverse effects of AI on children.

Many countries worldwide share these concerns regarding the development of AI. Nearly every country is actively seeking ways to mitigate the risks associated with AI use, particularly concerning children. Various initiatives have been introduced to raise awareness about potential online dangers for children. “In fact, ITU and the National Cybersecurity Authority (NCA) from Saudi Arabia launched the Creating a Safe and Prosperous Cyberspace for Children Programme in 2020 which has two pillars, namely capacity building and policy support,” Patria explained.

Furthermore, in Vietnam, the government has held several press conferences calling for parents to be vigilant when it comes to monitoring what their children have access to online. It has encouraged parents to follow Vietnam’s principles of conduct in the network environment and ensure that their children only use applications specifically designed for them.

Catalysing Innovation for Enhanced Public Services in Indonesia

Serving the public is crucial to meeting citizens’ needs and ensuring their satisfaction. Moreover, public service standards play a key role in granting transparent access to information for everyone. This transparency helps people understand the requirements, procedures, costs, and timeframes involved in receiving services without any confusion. It also invites public scrutiny, ensuring accountability in implementation. Delivering exceptional service creates a sense of ease and contentment among the populace regarding the government’s effectiveness.

The government of Indonesia continues to make various efforts to maintain and improve the quality of public service. Minister of State for Administrative Empowerment and Bureaucratic Reform (PANRB) Abdullah Azwar Anas agrees that the implementation of digital transformation in public service is the key to accelerating the quality of public service.

“The realisation of good government governance with high-integrity apparatus and productive in order to improve public trust,” explained Abdullah Azwar Anas. “Digital transformation in public service will provide convenience for the public in accessing services.”

Abdullah Azwar Anas added that a good Government Information System (SPBE) implementation in public service, can also increase other indices in parallel, such as corruption perception, ease of doing business, and law enforcement.

The implementation of digital transformation in public service can also encourage the creation of innovation in solving existing problems. “However, it is important to remember that SPBE does not always have to add applications. Each innovation or function can be integrated and interoperable with existing applications,” he continued.

The launch of The National Public Service Innovation Network (JIPPNas) is an important step in the effort to realise the transformation of public service in Indonesia. JIPPNas is envisioned to be a means to share information and knowledge about public service innovation, as well as to inspire public service providers to continue to innovate in providing better services to the public.

JIPPNas is envisioned as a platform dedicated to transferring knowledge about public service innovation to government agencies, fostering the creation of new ideas and innovations. Functioning as an information portal for public service innovation, JIPPNas encourages collaboration and knowledge exchange among the Indonesian government, the public, academic institutions, and the private sector. It offers a range of information on public service innovation, including news updates, guides, and directories, while also incorporating forum features to facilitate discussions and consultations on innovation-related topics.

With the diverse information and features of JIPPNas that can be developed through this collaboration, the nation aims to encourage and improve the creation and development of innovation by public service providers through JIPPNas.

“Therefore, the presence of JIPPNas is expected to be an effort to grow new public service models through collaboration,” said Abdullah Azwar Anas.

In addition to collaboration in providing public service innovation data, this collaboration can facilitate the dissemination of information related to innovation so that it can reach data on innovations that have become best practices in various government agencies. “Thus, JIPPNas can provide information to the public and government agencies related to good practices in public service innovation in Indonesia,” he continued.

Through the progress in public service, Abdullah Azwar Anas is optimistic about achieving optimal public satisfaction. This will create various innovations that can make it easier for the government to innovate to provide the best services to the Indonesian people.

Abdullah Azwar Anas realised that digital transformation is not enough. Still, collaboration also plays a vital role in providing innovative ideas in the midst of the development of the times so that it can allow adaptability in maintaining existence in the midst of competition in the digital era today.

The Head of the LAN State Administration Innovation Centre, Hartoto, also agreed on the roles, rights, and obligations of each party in the management of the public service innovation information portal. This is solely so that the management of JIPPNas can run smoothly in the future.

“We from LAN support the joint management of JIPPNas because we are also building an innovation learning system that may be connected to the JIPPNas portal,” Hartoto concluded.

Digital Transmission Expansion in East Java

The Republic of Indonesia’s Public Television Broadcasting Institution has expanded its digital transmission infrastructure in East Java by adding one transmitter. Minister Budi Arie Setiadi of the Ministry of Communication and Information (Kominfo) highlighted that on a national scale, the national public television network Lembaga Penyiaran Publik Televisi Republik Indonesia (LPP TVRI) now covers 70.18% of the population.

With the introduction of this digital transmitter, LPP TVRI is further expanding its reach. Currently, LPP TVRI boasts 158 transmission stations, constituting 37% of the total digital transmission stations across the country, Setiadi stated during the inauguration of the new TVRI Alasmalang Banyuwangi Digital Transmitter.

The establishment of the Alasmalang Banyuwangi Digital Transmission Station signifies TVRI’s tangible commitment to ensuring equitable access to broadcasts. Setiadi expressed optimism that the residents of Banyuwangi Regency will enjoy improved access to positive and high-quality information through this initiative.

“Previously, in the Banyuwangi area there was no TVRI digital transmitter, the closest service areas were in Bali and Mount Gending – East Java. The Alasmalang Transmission Station will serve digital television broadcasts in East Java Service Area 6, which includes Banyuwangi Regency and its surroundings,” the Minister explained.

The presence of digital transmitter infrastructure creates opportunities for collaboration with television operators through multiplexing rental schemes. With this scheme, operators can save on infrastructure investments allowing them to concentrate on delivering superior quality broadcast programmes.

Furthermore, the extended broadcasting reach not only facilitates broader public access but also encourages participation in digital broadcasting programmes. Minister Setiadi elaborated, “The public can also enjoy an increasingly diverse choice of television channels, with better picture and audio quality.”

Kominfo is striving to maintain a balance between advancing telecommunications infrastructure and maintaining the quality of telecommunications services throughout the country. It ensures this with the provision of facilities such as the Telecommunication Monitoring Centre (Pusat Monitoring Telekomunikasi or PMT).

As OpenGov Asia reported, PMT features six elements, namely the PMT analysis dashboard, the Geographic Information System (GIS), the Sigmon application, telecommunications monitoring, smart monitoring quality of service (QoS), and ticketing.

Sigmon, developed by Kominfo, is a mobile application that provides users with real-time information on their mobile phone network service’s internet speed and radio performance. Its features include internet speed tests, web browsing tests, video tests, and route tests. Kominfo follows up on all identified network issues reported by users through the application to enhance network performance.

The primary goal of PMT is to provide real-time or near-real-time information regarding the quality of telecommunications, postal, and broadcasting services. It streamlines the process of monitoring, evaluating, reporting, and analysing activities, aiming for efficiency and accuracy. The monitoring system is designed to tackle existing challenges by using big data analysis, enhancing the precision and effectiveness of decision-making.

In the last five years, digital transformation has become a key focus for the government. Kominfo consistently introduces programmes to promote fair access to digital infrastructure, bolster digital government initiatives, and cultivate a digital society.

In September, Setiadi advocated for a proposed increase of IDR 5.25 trillion (US$ 340 million) in the 2024 Draft State Revenue and Expenditure Budget (RAPBN) for Kominfo to expedite the national digital transformation.

Extra budget allocations will be designated for initiatives on disseminating information and public communication to boost digital literacy, address harmful content, and finalise the development of ICT infrastructure.

Indonesia Tech Agenda for Telecommunication

The Indonesian Ministry of Communication and Information (Kementerian Komunikasi dan Informatika or Kominfo) is working to balance the development of telecommunications infrastructure while upholding the quality of telecommunications services in the country.

Image credit: Indonesian Ministry of Communication and Information

One of the ways to guarantee the quality of telecommunications, postal, and broadcasting in accordance with established standards involves providing Telecommunication Monitoring Centre (Pusat Monitoring Telekomunikasi) facilities.

According to Dany Suwardany, the Director of Post and Informatics Control at the Directorate General of Post and Informatics within Kominfo, “In order to ensure that the quality of telecommunications, postal, and broadcasting services runs well, one of the things we do is to build or prepare a Telecommunication Monitoring Centre or as we call it PMT for short, which is integrated into supervising telecommunications, postal, and broadcasting services.”

PMT features six elements, namely the PMT analysis dashboard, the Geographic Information System (GIS), the Sigmon application, telecommunications monitoring, smart monitoring quality of service (QoS), and ticketing.

PMT aims to deliver real-time or near-real-time information on the quality of telecommunications, postal, and broadcasting services. Top of FormIt facilitates the efficient, rapid, and accurate execution of monitoring, evaluation, reporting, and analysis activities. The objective is for the monitoring system to address various existing challenges by collecting data through big data analysis, which enables more precise and effective decision-making.

Suwardany was speaking at the Telecommunication, Post, and Broadcasting Monitoring Centre Socialisation event in Central Jakarta. Representatives from provincial, district, and city communications and information services organizations attended the event.

Over the past five years, digital transformation has emerged as a top priority for the government. The Kominfo routinely implements programmes aimed at fostering the equitable distribution of digital infrastructure, supporting digital government initiatives, and cultivating a digital society.

In September, the Minister of Communication and Information (Menkominfo), Budi Arie Setiadi, proposed an increase in the 2024 Draft State Revenue and Expenditure Budget (RAPBN) for Kominfo worth IDR 5.25 trillion (US$ 340 million) to accelerate national digital transformation.

Additional budget allocations will be earmarked for dissemination and public communication efforts to enhance digital literacy, address harmful content, and complete the development of ICT infrastructure.

This infrastructure includes providing for the country’s SATRIA-1 Phase-III Satellite and ensuring widespread internet access. Additionally, there are operational and maintenance needs for existing infrastructure, as well as the management and control of electronic system operations.

Additional budget allocations will enhance public services through initiatives like the development of the BBPPT (Balai Besar Pengujian Perangkat Telekomunikasi) Laboratory, optimising the radio frequency spectrum provision for public services, and improving PMT. Furthermore, they will be used for Universal Service Obligation (USO) strategic planning, the Digital Talent Scholarship (DTS), and the implementation of the Central Information Commission Integrated Public Information Service System.

The Minister emphasised that Kominfo is committed to maintaining optimal and accountable budget management. “We have to spend better, with higher quality, on target, and with a measurable impact,” he noted.

Empowering Indonesia’s Digital Workforce

The enhancement of digital capabilities in the workforce has become a pivotal point in addressing the challenges of the current digital era. It improves an organisation’s operational performance and provides a more decisive competitive edge in facing rapid changes.

In alignment with the vision of Indonesia Emas 2024, Indonesia has acknowledged the importance of accelerating digital transformation as a crucial part of its journey towards success. Various ministries have taken several concrete steps to encourage public participation in training to foster competent talents in the digital realm.

The awareness of the significance of investing in enhancing digital skills in the workforce has become increasingly significant. It not only aids individual development but also makes a substantial contribution to improving the competitiveness of companies and the country as a whole in the rapidly evolving global digital economy.

Minister of Communication and Information Technology, Budi Arie Setiadi has launched a critical initiative to support digital transformation in Indonesia. Through the Digital Leadership Academy (DLA) programme, over a thousand digital leaders have received training to propel digital transformation by enhancing workforce capacity and human resources.

Fundamentally, digital transformation requires leadership that comprehends and masters digital aspects in every sector. Since 2021, the Ministry of Communication and Information Technology has initiated the DLA programme as a step in strengthening digital leadership in Indonesia. Budi Arie emphasised that this digital training programme is aimed at public and private leaders.

Through the DLA, executives, policymakers, and business actors are expected to formulate innovative policies, initiate digital transformation, and enhance the country’s digital economic competitiveness.

The digital era has brought an undeniable wave of change, highlighting the importance of having adequate digital skills in various aspects of life. The widespread transformation in many industrial sectors underscores the necessity for leaders who can adapt to these changes. Minister Budi Arie stresses that the current cultural shift is significantly underway, especially regarding remote working paradigms and an increasing reliance on data-driven decision-making.

In line with this cultural shift, digital skills have become increasingly crucial in the working world. The need for adequate digital skills extends beyond technology to manage information, understand data, and sustain innovation. This emphasises that adapting to technological changes and shifts in work culture is the key to success in the current digital era. In this context, analytical and creative skills remain crucial for a leader. According to Minister Budi Arie, leaders in the digital era must proactively enhance their skills to lead change effectively.

The Digital Leadership Academy programme features three schemes: Smart Digital Leader Indonesia Maju, Smart Digital Leader Makin Digital, and Smart Digital Leader Province. This was disclosed by an individual previously holding the position of Vice Minister for the Development of Disadvantaged Regions and Transmigration.

Furthermore, the Digital Leadership Academy programme collaborates with several partners, particularly renowned universities worldwide such as MIT, Cornell University, National University of Singapore, Tsinghua University, and others, solely to provide cutting-edge and relevant learning for facing digital transformation.

Minister Budi Arie Setiadi strongly supports this training. For him, enhancing digital capacity among leaders is a crucial foundation in advancing the country towards a broader digital transformation. He believed leaders skilled in the digital realm have significant potential to influence the direction of change and innovation in both the public and private sectors. “Leaders equipped with digital skills can address the paradigm shifts in the working world, design more inclusive policies, and strengthen digital economic competitiveness,” he expressed.

He stated that upskilling leaders in digital expertise is not just about understanding technology but is also related to readiness to face cultural shifts that increasingly adopt technology as an inseparable part of daily life. Leaders skilled in digital realms will play a central role in guiding organisations and communities to adopt the necessary changes to face this digital era.

Smart Cities, Digital Literacy and Cybersecurity Guide Indonesia’s Future

The Indonesian Government continues to work towards realising the vision of Indonesia Maju 2045. One of the crucial pillars of this vision is the development of a robust digital infrastructure. Through a solid digital infrastructure, communication networks will operate smoothly from any perspective. This will undoubtedly bring significant progress and acceleration for Indonesia in the future.

Minister of Communication and Information Technology Budi Arie Setiadi stated that one of the critical factors in achieving this vision is comprehensive digital transformation. One of the policy implementations for digital transformation is the development of smart cities.

The Government has set a target for the construction of 100 smart cities. Therefore, the Minister of Communication and Information Technology has announced the preparation of a Digital Roadmap as a strategic guideline for building smart cities in Indonesia.

The first aspect is the provision of infrastructure in the Information and Communication Technology (ICT) sector. According to Minister Budi Arie, the Government will continue to enhance the capacity and coverage of infrastructure for this digital transformation throughout Indonesia.

Secondly, the management of frequency spectrum, device standards, and public services. The Government will manage the frequency spectrum efficiently and effectively to support the development of smart cities.

Thirdly, the Government will establish ICT device standards and public services compatible with digital technology. This ensures that ICT can be optimally used to support various community needs. The Government will promote the utilisation of digital technology in various fields, such as governance, education, healthcare, and transportation.

In addition to infrastructure and technology, developing smart cities requires competent human resources. Therefore, the Government will continue to enhance the digital literacy and digital skills of the public.

“In terms of digital literacy, the Ministry of Communication and Information Technology has been running digital literacy programmes since 2017. This programme has reached more than 22 million people across Indonesia,” said Minister Budi Arie.

Minister Budi Arie also ensures that the Ministry of Communication and Information Technology will continue coordinating with various stakeholders to realise digital transformation in Indonesia.

“This is important to ensure that various programmes and policies implemented can run effectively and efficiently,” he emphasised.

Furthermore, the development of digital infrastructure and Smart Cities in Indonesia not only requires robust digital infrastructure and talent but also assured data security. This is because all interconnected digital.

Sulistyo, Deputy for Cybersecurity and Cryptography of the State Cyber and Cipher Agency (BSSN), mentioned in the same forum that if one cybersecurity system is attacked, it can disrupt all digital services.

“To address this challenge, we have been collaborating with the Ministry of Communication and Information Technology to promote cybersecurity literacy and prepare cybersecurity human resources. Based on BSSN’s analysis, Indonesia’s need for cybersecurity human resources will reach 39,000 individuals within the next two years,” he said.

According to Sulistyo, BSSN has signed a Memorandum of Understanding (MoU) with the Ministry of Communication and Information Technology to conduct Cybersecurity Training. It is expected that this training will enhance the competencies of regional government human resources in cybersecurity.

Ade Melita, the Executive Director of the conference, presented that data breaches are a real threat in the digital era. Personal data of citizens, such as demographic data, banking data, and health data, have become prime targets for hackers.

IKN is expected to become a reference city for the world. This city will serve as an example of how technology can enhance the quality of life for its citizens and achieve sustainable development.

Currently, IKN is indeed one of the national strategic projects being developed by the Government. With the concept of a smart city, IKN is targeted to improve the quality of life for its citizens and enhance Indonesia’s competitiveness on the international stage.

Indonesia, Singapore Enhancing Regional Digital Innovation

The Minister of Communication and Information, Budi Arie Setiadi, received a visit from the Singaporean Ambassador to Indonesia, Kwok Fook Seng, it aims at discussing digital economic cooperation. This meeting is not only a pivotal step in the bilateral relations between the two countries but also a follow-up to various previous meetings involving stakeholders in the digital economy field.

In this meeting, Minister Budi Arie Setiadi and Ambassador Kwok Fook Seng extensively discussed cooperation plans in line with the ASEAN Digital Ministerial Meeting (ADMM) framework.

Minister Budi Arie Setiadi explained, “In line with previous bilateral meetings between the two countries, there are several important agendas that need to be discussed in preparation for the upcoming ASEAN Digital Ministerial Meeting next year. Therefore, we discussed mutually beneficial cooperation as ASEAN member states.”

This meeting reflects the importance of regional cooperation in facing challenges and opportunities in the digital economy. ASEAN, as a regional entity, plays a vital role in driving digital economic growth and creating an environment that supports innovation and investment in this sector.

Cooperation between Indonesia and Singapore in this regard is a strategic step to ensure that ASEAN countries can unite in addressing global dynamics related to technology and the digital economy.

Furthermore, this meeting also reflects a joint commitment to harness the potential of the digital economy as a crucial factor in the growth and development of both countries. It is a positive step towards increased collaboration in various sectors, including trade, investment, innovation, and regulations that support the development of the digital economy in ASEAN.

Minister Budi Arie Setiadi is very optimistic about the opportunities for cooperation in the digital economy, given that ASEAN is projected to have a digital economic development potential exceeding Rp20 trillion by 2030. This perspective reflects an understanding of the significant role of the digital economy in the economic development of ASEAN and its highly positive impact on Indonesia, Singapore, and all ASEAN member countries.

Minister Budi Arie Setiadi explained, “The digital economy is a necessity. So, there are some issues, such as personal data protection, data security, and digital economic development.” This stride underscores the importance of addressing data and security issues in the context of the digital economy, which is crucial for sustainable growth.

In addition to discussing the potential of the digital economy, Minister Budi Arie Setiadi also expressed concern about issues related to negative content in the digital space. He noted that Singapore has developed an effective approach to identifying, verifying, and providing explanations to the public regarding negative content. Learning from Singapore’s experiences in dealing with such issues is paramount for Indonesia, especially in the context of Indonesia’s larger population complexity.

In the context of upcoming events, the Singaporean Ambassador to Indonesia, Kwok Fook Seng, appreciated the meeting held by the instructions of the Singaporean Minister of Communication and Information, Josephine Theo. Kwok Fook Seng also announced that there will be an ASEAN Digital Minister Meeting in January next year and conveyed an invitation from Minister Josephine Theo to Minister Budi Arie Setiadi.

The Singaporean Ambassador reaffirmed Singapore’s commitment to continue working with Indonesia in addressing various challenges identified during the meeting and resolving issues at the ASEAN level. This meeting reflects strong cooperation between the two countries in achieving common goals in the context of the digital economy and technological development.

Empowering Indonesia’s Digital Industry

Over the past decade, digitisation has emerged as a dominant global trend, and future projections indicate that it will continue to be a significant driver of global economic growth, including in Indonesia. Hence, digital transformation has become an urgent necessity for the national manufacturing industry as a crucial effort to enhance efficiency and stimulate technological innovation, thereby boosting competitiveness on the global stage.

“In the context of Indonesia, it is important to acknowledge that digital industry players have experienced significant growth, in line with the ‘Making Indonesia 4.0’ initiative continuously advocated by the government. Moreover, digital and electronic products manufactured in Indonesia have been improving in quality, enabling them to compete effectively in the global market,” emphasised Taufiek Bawazier, the Director-General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) at the Ministry of Industry.

The ‘Making Indonesia 4.0’ initiative, driven by the government, has played a vital role in propelling this digital transformation, creating abundant opportunities for Indonesian companies to engage in the digital industry and participate in an increasingly digitally interconnected global economy. In this context, more industry players in Indonesia have begun to understand the importance of digital transformation, investing in technology and innovation. They realise that to compete in a complex global market, companies must harness digital technology and continue innovating.

However, digital transformation poses several challenges, such as the increased demand for skilled labour in technology, data protection and privacy, and cybersecurity. Therefore, while promoting digital transformation, it is also essential to address these challenges effectively to allow both the public and industry players to reap the maximum benefits of this change.

To introduce the capabilities of Indonesia’s digital and electronic industry to a broader international audience and expand their market access, the Ministry of Industry facilitated the participation of six digital and electronic industrial manufacturers in the Electronic Exhibition in Hong Kong.

This initiative aims to assist manufacturers in extending their reach and promoting their products to the international community. By participating in this exhibition, Indonesian manufacturers can showcase the quality and innovative potential of domestically produced electronic and digital products in an increasingly digitally interconnected global market. This also serves as an effort to support national industrial growth and strengthen Indonesia’s position in the worldwide economy.

Yan Sibarang Tandiele, Secretary of the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE), explained, “We have sent six representatives from the domestic electronic and digital industry to this exhibition, not only for promotional purposes but also with the goal of opening up new opportunities for collaboration and investment.” This effort reflects the commitment to establish collaborative relationships and explore investment opportunities that can strengthen the position of Indonesia’s digital and electronic industry on the international stage.

The Ministry of Industry has also actively promoted investment through a series of activities related to the Hong Kong Electronics Fair (Autumn Edition). In this endeavour, the Ministry of Industry has explained government investment policies. Several fiscal policies have been formulated to encourage investment in this sector, including tax holidays, tax allowances, and super tax deductions. All these policies are designed to stimulate investment technology mastery and strengthen the industrial structure that supports industrial companies meeting the requirements and criteria set forth.

Yan further explained, “On the other hand, the non-fiscal policies given to industrial companies also include facilitating the participation of industrial companies in international exhibitions.” Through the implementation of these policies, it is expected that the domestic electronics and telematics industry will experience significant strengthening and empowerment.

These measures are also seen as a critical strategy to enhance domestic industry capacity. Furthermore, these steps can create economic balance and help reduce the trade deficit that the electronics and digital industries have previously caused. All these efforts are aimed at strengthening Indonesia’s position in the electronics and telematics industry at the global level.

Indonesia Accelerating Digital Transformation

Digital leadership plays a central role in accelerating digital transformation, both in the private and public sectors. According to the Deputy Minister of Communication and Informatics, Nezar Patria, mastering digital leadership strategies is the key to successfully implementing digital transformation across various institutions.

Nezar emphasised that leaders in every institution, including government organisations and private companies, must understand digital leadership strategies. This enables them to lead effectively in the face of changes brought about by digital transformation.

Digital leadership involves using information and communication technology to optimise business processes, improve efficiency, and provide better services to the public or customers. Leaders who understand the importance of digital leadership strategies are better equipped to identify innovation opportunities, manage risks, and steer organisations toward success in the digital era.

In the public sector context, digital leadership can help the government provide more efficient and responsive public services. Implementing digital technology in various aspects of governance, such as e-government and innovative city initiatives, can enhance the quality of life for citizens and provide significant economic benefits.

Leaders need to set clear and far-reaching goals for implementing digital services. The adoption of technology, according to the Deputy Minister of Communication and Informatics, is a solution to the challenges faced in government services. It’s also essential to consider the business process aspects of services. Moreover, the development of digital platforms requires design thinking based on empathy.

Nezar expressed that digital transformation acceleration requires comprehensive and sustainable efforts. One critical aspect of the digital transformation journey is the development of technical skills among human resources.

Nezar addressed that to succeed in digital transformation, companies and organisations need to seriously focus on developing the technical skills of their human resources. This allows them to contribute optimally to adopting and implementing digital technology.

Furthermore, Nezar also highlighted the importance of creating a diverse, equal, and inclusive workplace in the context of digital transformation. Building a work environment that supports diversity fosters various perspectives and thinking, which, in turn, can lead to better innovation.

In the era of digital transformation, equal access and opportunities are crucial. This includes ensuring that all team members have the same access to training, resources, and development opportunities regardless of their backgrounds. Equality also encompasses the opportunity to participate in decision-making and contribute to digital transformation strategies.

Furthermore, inclusivity is the key to success in implementing digital technology. It means that all organisation members, including those from diverse backgrounds, have a role and a voice in the planning, design, and use of digital technology. With inclusivity, organisations can ensure that the solutions implemented are more relevant, effective, and acceptable to all parties involved.

“The development of technical skills and the creation of a diverse, equal, and inclusive workplace are two interrelated elements that support digital transformation. Through inclusive training and development, all team members can hone their technical skills and contribute to digital transformation efforts,” Nezar expressed.

Moreover, these efforts also require investments in infrastructure and supporting resources, such as access to training and technology resources. It ensures that all organisation members have an equal opportunity to develop their technical skills and participate in digital transformation.

Hence, developing technical skills in human resources and creating a diverse, equal, and inclusive workplace are vital steps in accelerating digital transformation. It will help organisations become better prepared to face evolving technological changes and leverage the opportunities presented by the digital era.

December 1, 2023

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Indonesia’s Approach to Ethical AI Implementation

Indonesia’s Commitment to Child Safety in the Digital Age

Catalysing Innovation for Enhanced Public Services in Indonesia

Digital Transmission Expansion in East Java

Indonesia Tech Agenda for Telecommunication

Empowering Indonesia’s Digital Workforce

Smart Cities, Digital Literacy and Cybersecurity Guide Indonesia’s Future

Indonesia, Singapore Enhancing Regional Digital Innovation

Empowering Indonesia’s Digital Industry

Indonesia Accelerating Digital Transformation

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