Seeing New Economic Opportunities in Indonesia with Generative AI Technology

Artificial intelligence illustration (photo: Microsoft)

JAKARTA - Fulcrum research from the ISEAS – Yusof Ishak Institute entitled "The State of Indonesia's Digital Economy in 2022" states that Artificial Intelligence (AI) has very promising opportunities in Indonesia.

Moreover, Indonesia is the country with the largest digital economy in Southeast Asia. The Indonesian government itself has consistently supported digital investment, including adopting the National Strategy for Artificial Intelligence 2020-2045.

The strategy outlines plans to develop the infrastructure and talent pool, recommending the formation of a data ethics board to oversee AI development, as well as creating national regulations and standards for AI innovation.

In the report "The Economic Impact of Generative AI: The Future of Work in Indonesia" issued by Access Partnership in collaboration with ELSAM and support from Microsoft, it is revealed that generative AI can unlock potential production capacity in Indonesia of 243.5 billion US dollars (IDR 3.87 quadrillion ), or the equivalent of one-fifth of GDP in 2022.

In this way, Indonesia has business opportunities and workers who are better positioned to unlock or use the potential of generative AI, as well as manage the risks that will arise.

"The new generation of AI, namely Generative AI, helps us to interact with data in new ways. Starting from summarizing text, detecting anomalies, to recognizing images," said Dharma Simorangkir, President Director of Microsoft Indonesia in a statement received by VOI.

This report also states that the positive impact of Generative AI is very large. Many organizations across scales and industries, or individuals in Indonesia, have started to integrate this technology into business operations and daily life.

Some of the positive impacts of applying Generative AI include facilitating creativity, accelerating discovery, and increasing work efficiency.

"These examples show how AI can help people focus on carrying out the essential elements of each job, rather than replacing them," he added.

Dharma also assured the emergence of various new opportunities in the future. So, in order to realize this opportunity, this report details at least three aspects that need attention, namely:

1. Increase access and use,
2. Risk management, as well
3. Encourage innovation – all while including an element of responsibility as the main foundation.