Indonesia is positioning itself as an active participant in the global governance of artificial intelligence (AI), with Finance Minister Purbaya Yudhi Sadewa emphasizing the importance of incorporating the perspectives of developing countries. In a statement made on Monday, following the IMFC Early Warning Exercise at the IMF-World Bank Spring Meetings held in Washington from April 13 to 17, Purbaya highlighted Indonesia’s evolution in the AI sector, stating, “Indonesia’s involvement in AI has grown from its early development stages to an integral part of the entire economy.”
The increasing relevance of the information and communications technology (ICT) sector is expected to culminate in a historic growth rate of 8.35 percent by 2025, according to the minister. This boost is underpinned by over 12,000 kilometers of fiber-optic networks and a national satellite capacity of 150 Gbps, enabling better connectivity and fostering innovation.
As part of its strategy to enhance its national AI ecosystem, Indonesia is focusing on maximizing domestic productivity gains while remaining open to global collaborations. The goal is to position Indonesia not only as a user but also as a developer of AI-based solutions. However, Purbaya noted the need for vigilance against potential systemic risks, which include asset bubbles linked to AI investments, labor market disruptions due to automation, and financial stability risks stemming from AI-driven decision-making.
To address these risks, Indonesia aims to implement an AI-specific early warning mechanism designed to anticipate systemic financial challenges. Purbaya reiterated the importance of ensuring that the benefits of AI are widely distributed to support equitable and sustainable global growth. This commitment aligns with Indonesia’s broader economic strategy, which has been recognized by the IMF as a “bright spot” in the global economy.
During the IMF-World Bank Spring Meetings, Purbaya engaged in bilateral discussions with various development partners, including Mathias Cormann, Secretary-General of the Organization for Economic Co-operation and Development (OECD). Cormann indicated strong support for Indonesia’s accession process and emphasized the need for strengthening institutional capacities, particularly for the National Single Window Agency (LNSW).
The Indonesian government’s proactive stance on AI governance and its commitment to addressing systemic financial risks reflect a comprehensive approach to integrating AI into its economic framework. By fostering a robust national AI ecosystem and engaging with global partners, Indonesia is setting the stage for a future where AI can drive growth while minimizing associated risks. This proactive engagement could significantly impact how developing countries are represented in global technology governance discussions.
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