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Govt to introduce AI-based deregulation program, Luhut says

A pilot project for the AI-based GovTech system will be launched in Banyuwangi, East Java, in September.

Ni Made Tasyarani (The Jakarta Post)
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Thu, August 14, 2025 Published on Aug. 14, 2025 Published on 2025-08-14T11:28:35+07:00

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An illustration of artificial intelligence activities. An illustration of artificial intelligence activities. (Shutterstock/SuPatMaN)

T

he government plans to roll out an artificial intelligence-based deregulation initiative as part of efforts to enhance Indonesia’s competitiveness, National Economic Council (DEN) head Luhut Binsar Pandjaitan revealed.

“We will present the deregulation [initiative] to President Prabowo Subianto. It’s AI-based and we are currently working on it. Once implemented, it will reduce the number of [potential] irregularities,” he told reporters in Jakarta on Wednesday.

The program is set to be included in the government’s integrated services platform, dubbed GovTech, and will be incorporated into its online single submission (OSS) system for business licensing.

According to Luhut, a pilot project for the AI-based GovTech system will be launched in Banyuwangi, East Java, in September.

“If this is successful, we will continue to develop [the system] so that our data is entirely based on AI, allowing us to upgrade and update it at any time,” he said, adding that the process involves coordination between the DEN and the Investment and Downstream Ministry.

The former senior minister expressed optimism about the project, highlighting several “success stories” from the country’s homegrown digital portfolio, such as the COVID-19 tracking app PeduliLindungi, the Mineral and Coal Information System (Simbara) and the procurement platform e-catalog, which he claimed had cut spending by 40 percent.

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“When fully integrated [...], it will make Indonesia very competitive,” he added.

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