Overview

In recent years, the technology and digital sector has rapidly expanded as a strategic contributor to Indonesia’s national economic growth, with government projections estimating that the country’s digital economy accounted for around 8% of its Gross Domestic Product (“GDP”) by the end of 2025.^[1] This rapid growth in Indonesia’s tech and digital sector is being driven by the widespread adoption of digital platforms, fintech and services that utilize Artificial Intelligence (“AI”) technologies.

In response to the country’s rapid digitization, emerging technologies like AI continue to face both substantial opportunities and conditional uncertainty, with infrastructure limitations, including internet access and talent shortages, posing major barriers to achieving the full benefits of digital adoption and equitable regional growth.^[2] Moreover, as Indonesia’s digital economy continues to grow, cybersecurity threats, including AI-enabled attacks, have also increased, exposing weaknesses in both public and private sector systems and raising risks for consumers and businesses.^[3]