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AI seen to unlock endless opportunities in Indonesia
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Illustration photo taken on March 31, 2023. Artificial intelligence (AI) is the talk of the town in venture capital circles. (Reuters/Dado Ruvic)
M
ost artificial intelligence (AI) development is happening elsewhere for now, but investors in Indonesia and abroad are ready to pounce on the use cases the cutting-edge technology promises to unlock in Southeast Asia’s largest economy.
The country’s macroeconomic trends coupled with a relatively young and increasingly tech-savvy population are seen as creating endless opportunities for homegrown start-ups to adopt as well as advance AI.
The use of AI is growing each day, and, according to a study conducted by United States based-management consulting firm Kearney, AI could contribute US$1 trillion to the ASEAN economy by 2030.
Local and regional venture capital firms (VCs) interviewed by The Jakarta Post are enthusiastic about AI supercharging business activity in Indonesia.
“With the right business model and products, [AI] solutions definitely can be good investment opportunities,” said Edward Ismawan Chamdani, managing partner in VC outfits Gayo Capital and Ideosource. “There will definitely be money coming in from AI Projects.”
He added that, while the world’s largest tech companies had been created during downturns, as new problems and inefficiencies became more apparent, “investors will always see the potential market size and whether the pie is big enough to support the growth story.”
Livinglab Ventures vice president of investment Edmund Carulli said it “makes sense to invest and try out new technology such as AI in Indonesia. The upside will still be far above the risk of failing.”
