The adoption of artificial intelligence in Indonesia’s public sector remains a formidable challenge. While AI holds immense potential to revolutionize governance, enhance decision-making and improve public service deliv- ery, Indonesia’s current standing in global AI indices reveals significant gaps.

In the 2024 Global AI Index, Indonesia ranks 49th out of 83 countries, trailing behind regional peers like Singapore and Malaysia. Similarly, the Government AI Readiness Index 2024 places Indonesia at 38th out of 181 nations, highlighting gaps in policy, infrastructure and technical capacity.

The Stanford AI Index further underscores Indonesia’s absence from the top-50 countries in AI research output, patents and investment. Meanwhile, the Global Innovation Index 2024 ranks Indonesia 54th out of 133 countries, reflecting insufficient investment in R&D and digital infrastructure.

These rankings reveal a stark reality Indonesia is lagging in the global AI race. Without decisive action, the country risks being left behind in the digital era.

Despite these challenges, there are glimpses of progress. The National Disaster Management Agency (BNPB) has employed AI to predict natural disasters like floods and landslides, using data analytics to provide early warnings and save lives.

During the COVID-19 pandemic, AI-driven platforms were used to track the virus’s spread, optimize vaccine distribution and monitor public compliance with health protocols.

These examples demonstrate AI’s potential to address critical public sector challenges. However, such applications remain limited in scope and scale.

For AI to truly transform Indonesia’s public sector, a more comprehensive and strategic approach is essential. Several barriers hinder AI adoption in Indonesia.

First, the lack of digital infrastructure. According to the International Telecommunication Union (ITU), only 62 percent of Indonesia’s population had internet access in 2022, with rural areas facing even lower connectivity rates. The average internet speed of 20.9 mbps, as reported by Speed test Global Index in 2023, far below the global average of 39.5 mbps. This lack of highspeed internet hampers the deployment of AI systems that rely on real-time data processing.

Second, a severe shortage of skilled AI professionals, including data scientists, engineers and researchers. This talent gap limits the country’s ability to develop and implement AI solutions.

Third, weak policy framework. While initiatives like Making Indonesia 4.0 have been launched, there is a lack of clear, enforce- able policies to guide AI development and ethical use.

Fourth, data fragmentation persists as a critical issue. Public sector data is often siloed and inaccessible, hindering the development of AI systems that require large, integrated datasets.

Finally, public trust and ethical concerns must be addressed. The misuse of AI, such as in surveillance or biased decision-making, could erode public confidence. Ensuring transparency and accountability is therefore crucial.

To overcome these challenges, Indonesia must embark on a comprehensive digital transformation journey.

First, the government must prioritize the development of high-speed internet and digital infrastructure, particularly in rural and remote areas. Expanding 4G and 5G networks and investing in fiber optic cables can significantly improve connectivity.

Second, Indonesia should invest in AI education and training programs at all levels, from elementary schools to universities. Partnerships with tech companies and international institutions can help bridge the talent gap.

Third, a clear and comprehensive national AI strategy is needed to guide research, development and implementation. This strategy should include ethical guidelines to ensure responsible AI use.

Fourth, the government should establish centralized data platforms and promote open data initiatives to facilitate AI development. Data privacy and security must be prioritized to protect citizens’ information.

Finally, fostering public-private partnerships is essential to drive AI innovation. Collaboration between the government, private sector and academia can accelerate progress, while incentives like tax breaks and grants can encourage private sector investment in AI projects.

The application of AI can propel Indonesia toward becoming a developed nation by strengthening its institutions and governance. AI can enhance public service delivery by automating routine tasks, reducing bureaucratic inefficiencies and improving decision-making through data-driven insights.

For example, AI-powered systems can streamline tax collec-tion, optimize budget allocation and detect fraud in public procurement, thereby increasing transparency and accountability. In education, AI can personalize learning experiences, identify atrisk students and improve teacher training programs. In health care, AI can predict disease outbreaks, optimize resource allocation and enhance diagnostic accuracy.

Moreover, AI can strengthen governance by enabling evidencebased policymaking. By analyzing vast amounts of data, AI can identify trends, predict outcomes and provide actionable recommendations for policymakers.

For instance, AI can help design targeted poverty alleviation programs by identifying vulnerable populations and predicting the impact of interventions. In the legal sector, AI can assist in drafting legislation, analyzing court cases and ensuring regulatory compliance.

The challenges of AI adoption in Indonesia’s public sector are significant but not insurmountable. By addressing infrastructure gaps, building talent and implementing clear policies, Indonesia can position itself as a leader in AI adoption in Southeast Asia. The examples of AI in disaster management and public health demonstrate its transformative potential.

However, realizing this potential requires a concerted effort from all stakeholders. As Indonesia embarks on its digital transformation journey, the public sector must take the lead in embracing AI as a tool for innovation and progress.

By doing so, Indonesia can not only improve public service delivery but also enhance its standing in global AI indices, paving the way for a brighter, more technologically advanced future.

The journey will not be easy, but the rewards, a more efficient, transparent and responsive public sector, are well worth the effort. With strong institutions and governance, Indonesia has the potential to leverage AI as a catalyst for becoming a developed nation, setting an example for the region and beyond.

by Vishnu Juwono
an associate professor in public governance at the Faculty of Administrative Science, University of Indonesia.

Source: The Jakarta Post