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AI in public sector: A call for digital transformation
AI-powered systems can streamline tax collection, optimize budget allocation and detect fraud in public procurement, thereby increasing transparency and accountability.
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Screens are seen at the InaTEWS earthquake and tsunami monitoring room at the Meteorology, Climatology and Geophysics Agency (BMKG) headquarters in Kemayoran, Central Jakarta, on Sept. 30, 2024. The BMKG ensures that the agency issues a disaster warning within three minutes of the first detection. (Antara/M Riezko Bima Elko Prasetyo)
T
he 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 delivery, 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.
