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Clear and timely regulation key to Indonesia’s AI ecosystem
Indonesia can emulate the risk categorization of the EU’s AI Act while pondering how AI can accelerate innovation in prioritized sectors like health and trade, especially relating to micro, small and medium enterprises.
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An illustration of artificial intelligence. (Shutterstock/LookerStudio)
T
he Communications and Information Ministry recently issued a set of artificial intelligence (AI) guidelines through Circular No. 9/2023, which outlines non-binding AI-related ethical principles as well as responsibilities of private and public AI developers and operators.
The circular stipulates nine values that align with international AI principles, like those of UNESCO and the Organization for Economic Cooperation and Development (OECD).
The ministry’s decision to issue these voluntary principles and responsibilities is a strategic move in response to the growing use of AI in the country. Governments within and beyond the Asia-Pacific area have taken similar approaches. Singapore, for instance, has recently issued a non-binding guideline specifically for generative AI, a technology that can generate text-based content and images.
Nonetheless, the circular can only explain so much about how Indonesia will govern AI in the future. With the issuance of the guideline, the government should start determining the appropriate regulatory model for AI by considering what institution will serve as the “hub” for AI regulation and how the institution can oversee AI in a clear and timely manner.
Currently, no regulation lays out Indonesia’s AI regulatory framework. Many assume that the ministry will be the lead regulator of AI development. However, several other government institutions are also working to make their own strides on AI.
For example, the National Research and Innovation Agency (BRIN) is playing an active role in shaping cross-sectoral AI regulation. Following the recommendations of the 2020 National AI Strategy, BRIN is now leading the formulation of a presidential regulation on AI. BRIN is also working with the multi-stakeholder AI forum KORIKA to establish another national AI strategy following the emergence of frontier AI.
Prior to the issuance of the circular, the Financial Services Authority (OJK) issued a similarly non-binding AI guideline, encompassing the ethical values AI used by financial technology (fintech) companies should espouse. The National Cyber and Encryption Agency (BSSN), meanwhile, shared in a recent focus group discussion that it was formulating its own AI ethical standards.
