Government Accelerates Digitalization, National Single Data Will Be Supported by AI

JAKARTA - The government is accelerating national digital transformation by utilizing artificial intelligence (AI) technology to build an integrated national single data system.

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan said that the AI-based system would become a new foundation in government data management, as well as supporting the distribution of social assistance (bansos), the development of MSMEs, and the improvement of public service quality.

"This government will be based on digitization with AI support," said Luhut at a press conference at the Merdeka Palace, Jakarta, Tuesday, June 9.

According to Luhut, the use of AI allows the government to integrate various community data and government programs more accurately so that the policies taken can be targeted.

One of the changes that the government is preparing is to shift the pattern of subsidies from commodity-based or goods to beneficiary-based. With a more accurate data system, assistance can be directly given to the people who are entitled to receive it.

"Subsidies will no longer be for goods. Subsidies will go directly to the recipient. On average, we collect social assistance with cash transfers and so on, there is Rp. 5.4 million per person," he said.

Luhut explained that the AI-based single data system will also help the government map the social and economic conditions of the community more comprehensively. Thus, various assistance programs can be distributed more effectively and efficiently.

In addition to social assistance, AI technology will be used to support the development of micro, small, and medium enterprises (MSMEs). The government assesses that the integration of data supported by AI will help compile a more complete profile of business actors so that financing and mentoring policies can be carried out more accurately.

"And this will be grouped with AI. We will be able to encourage MSMEs by giving good scores because this person can be monitored clearly because of technology," said Luhut.

According to him, the use of AI in government governance will provide better monitoring capabilities for various public programs and services. All processes, from data collection to policy implementation, can be monitored in real time so as to increase transparency and effectiveness of government.

"Everything will be able to be monitored with this system," he said.

Luhut assessed that Indonesia has a great opportunity to become one of the countries with the largest AI-based digital government systems in the world. With a population of nearly 300 million, the use of this technology is considered a strategic need to improve the quality of public services as well as bureaucratic efficiency.

He also emphasized that the development of the digital system was carried out by domestic talents, which showed the ability of Indonesian human resources in developing technology to support government transformation.

"And once again this system is built by Indonesian children," said Luhut.

The government hopes that the implementation of the national single data system based on AI can strengthen the accuracy of social assistance distribution, increase the empowerment of MSMEs, as well as create a more transparent, effective, and data-based government governance.