The Rise of AI in Indonesia: A $366 Billion Opportunity

TL;DR:

• AI is projected to contribute US$366 billion to Indonesia’s GDP by 2030.
• “Ibu Rini,” an AI-powered virtual host, has over 230,000 followers on social media.
• Indonesia is preparing regulations to guide the ethical use of AI.

Artificial Intelligence (AI) is rapidly transforming industries worldwide, and Indonesia is no exception. With projections indicating that AI could contribute a staggering US$366 billion to Indonesia’s gross domestic product (GDP) by 2030, the country is gearing up to regulate this burgeoning industry. As AI takes on content creation and data-crunching, Indonesia is setting the stage for ethical and responsible AI development.

The Economic Impact of AI in Indonesia

AI is still in its early stages in Indonesia, but its potential to boost productivity and the economy is immense. According to data from global management consulting firm Kearney, AI is expected to account for an estimated 12% of the country’s economy by 2030. This significant contribution underscores the importance of AI in driving Indonesia’s economic growth.

Indonesia launched a national strategy for developing AI in 2020, aiming to set a clear direction for the role of technology in the country. To ensure the ethical and responsible use of AI, the government is preparing regulations that will establish clear guidelines on its use and address issues concerning ethics and data security.

“Ibu Rini”: The AI Influencer

One of the most fascinating examples of AI in Indonesia is “Ibu Rini,” a virtual host powered by artificial intelligence. With over 230,000 followers on social media platforms like Instagram and TikTok, Ibu Rini offers advice on relationships and health. Her videos, which teach viewers how to appreciate their partners and other topics, have garnered millions of likes. She even holds live streams that attract thousands of viewers in just an hour.

At first glance, Ibu Rini appears to be a typical Indonesian influencer creating content from her room. However, she is an AI creation developed by Avatara Labs. The company is transparent about her origins, clearly stating on her accounts that she is an AI creation.

“We are not trying to fool our audience. That’s one of the ethical things that we need to do … saying to the audience … if you are interacting with him or her, that is actually AI,” said Ananto Wibisono, the co-founder and CEO of Avatara Labs.

This transparency aligns with the ethical guidelines issued by Indonesia’s Communications and Informatics Ministry in December 2022. The circular emphasizes values such as transparency, credibility, and accountability in the use of AI.

Regulating AI in Indonesia

To improve guidance on AI, Indonesia is preparing regulations to establish clear guidelines on its use. The Communication and Information Technology Ministry is currently reviewing these proposed regulations with the involvement of experts and stakeholders.

Hokky Situngkir, the ministry’s director general of applications and informatics, emphasized the importance of ensuring that humans remain in control of AI and are included in the design of all AI development. These regulations aim to address ethical concerns and data security, ensuring that AI is used responsibly and for the benefit of society.

The Future of AI in Indonesia

As AI continues to evolve, Indonesia is positioning itself to harness its full potential. The country’s proactive approach to regulation and ethical guidelines sets a strong foundation for the responsible use of AI. With the projected economic impact and the growing influence of AI-powered influencers like Ibu Rini, Indonesia is poised to become a leader in AI innovation in Asia.

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