Indonesia plans to embed AI in key programs, including $15 billion free

JAKARTA — Indonesia plans to embed artificial intelligence in some key government programs including its $15 billion free meals plan, according to a presidential regulation draft seen by Reuters, part of a strategy that the government believes could lift its gross domestic product by 12% by 2030.

Indonesia’s progress on AI has been slow when compared with Singapore and Malaysia. They are pushing to establish themselves as development hubs, securing billions of dollars from global tech firms that are seeking to build critical infrastructure to meet growing demand for cloud and AI services.

The presidential regulation lays out a roadmap for ministries and regional governments to adopt AI from 2026 to 2029, targeting “economic growth through development, facilitation and use of AI especially in the president’s priority programs.”

The draft has not been previously reported upon. It is currently awaiting President Prabowo Subianto’s signature.

The government says in its draft that another goal is to make Indonesia more competitive in AI use regionally and globally.

Companies like Meta Platforms, IBM and Microsoft contributed to the draft, said Wahyudi Djafar, a tech analyst who wrote parts of the regulation and is a member of the AI government task force. The companies did not immediately respond to requests for comment.

In 2024, Microsoft said it would invest $1.7 billion over a few years in expanding cloud services and AI in Indonesia.

Analysts say Indonesia is not ready to be an AI developer, owing to a dearth of infrastructure including chips, as well as a lack of AI skills in the workforce.

Derwin Suhartono, a professor of artificial intelligence at Bina Nusantara University in Jakarta, said Indonesia has yet to be competitive in the AI race and “may stay as a consumer of products that foreign companies sell to.”

He added that the government can use AI in its programs with a structured and organized roadmap, but so far “it’s all rhetoric” at the execution level.

FREE MEALS In Mr. Prabowo’s free meals program, the draft says AI will be used to design region-specific menus, monitor kitchen hygiene, predict food demand and detect irregularities, as well as integrate health data for early warnings of emergencies.

The free meals program has been under fire due to a lack of transparency, and earlier this month, the head of the effort was fired and arrested. Irregularities have been detected in the setting up of kitchens, while safety standards and emergency responses have been criticized after tens of thousands of children suffered food poisoning last year.

It has also raised fears of inefficient spending at a time when Indonesia has limited budgetary space.

The draft notes that AI-driven automation has enabled organizations to “achieve remarkable efficiency while reducing operational costs.”

AI will also be used to analyze health checks in Indonesia’s free health screening and testing for tuberculosis.

The regulation built on a white paper that was issued last year. It is unclear when Mr. Prabowo will sign the new regulation. His office did not immediately respond to a request for comment.

The draft reiterates a plan for a “sovereign AI fund,” which would be handled mainly by the country’s new wealth fund, Danantara Indonesia. It also suggests providing fiscal incentives for AI researchers and adding talent to plug shortages.

AI could lift Indonesia’s gross domestic product by 12%, or $366 billion, by 2030, the draft regulation said.

Accompanying the AI adoption plan is a draft regulation that says government bodies must also report AI-related risks, including misuse of biometrics, intellectual property violations and deepfakes. — Reuters