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Indonesia’s chance to influence AI governance in Southeast Asia

Of the eleven ASEAN member countries, Indonesia is expected to have the highest economic impact of harnessing AI, accounting for $366 billion, followed by Thailand ($117 billion), Singapore ($110 billion), Malaysia ($115 billion), Vietnam ($109 billion) and the Philippines ($92 billion).

Albert Jehoshua Rapha (The Jakarta Post)
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Mon, July 10, 2023

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I

ndonesia has a great opportunity to become a navigator for developing artificial intelligence (AI) technology in Southeast Asia. This opportunity comes as Indonesia performs excellently in applying AI in the public and business sectors, with the enormous market potential for domestic AI development investment and the significant results of AI-related research.

AI-based technology is being massively developed in the public sector with the aim of administrative effectiveness and efficiency in developing smart governance, which can be seen in the implementation of the Smart City program.

In the business sector, Indonesia remains the region's largest potential market for investment in AI development. According to an OECD report (2022), Indonesia leads the amount of venture capital (VC) funding gained for AI development among the other five leading AI development countries in the region, namely Singapore, Malaysia, Thailand, Vietnam and the Philippines. As of 2022, Indonesia had successfully brought in some US$1,865 million in investment, highly exceeding Singapore ($529 million), Malaysia ($76 million), the Philippines ($63 million), Thailand ($46 million) and Vietnam ($12 million). 

In the field of research, Indonesia is also at the forefront. According to a 2022 OECD report, 11,891 scientific publications related to AI had been published by academics and researchers in Indonesia as of that year. This achievement ranks Indonesia as the most prolific in terms of research publications in the field of AI, surpassing the achievements of other ASEAN member states.

The most considerable potential for using AI is to advance economic growth. Regionally, Southeast Asia is estimated to stand to gain up to $950 billion, or 13 percent of the gross regional product by 2030. 

Of the eleven ASEAN member countries, Indonesia is expected to have the highest economic impact of harnessing AI, accounting for $366 billion, followed by Thailand ($117 billion), Singapore ($110 billion), Malaysia ($115 billion), Vietnam ($109 billion) and the Philippines ($92 billion).

However, aside from being beneficial, there are several challenges for Indonesia and other Southeast Asian countries in the future of AI governance. According to a study by the Asia Society Policy Institute (2022), at least three crucial issues need attention, namely inclusivity, cyber resilience and labor market disruption.

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