The Ministry of Communication and Informatics has collaborated with Microsoft to accelerate digital transformation and the adoption of artificial intelligence (AI) technology in Indonesia.
“The Indonesian government believes that multi stakeholder collaboration is crucial, including through cooperation between the government and the private sector,” Minister of Communication and Informatics Budi Arie Setiadi said on Thursday, March 14, 2024.
The ministry and Microsoft Indonesia signed a memorandum of understanding on strengthening the implementation of Information Technology and digital transformation in the government sector. Through this collaboration model, Budi explained that the government could access expertise, resources, and the latest technological innovations in implementing digital policies.
On the industry side, it could open up new business opportunities, enhance market access, and expand service reach, he saidr
The memorandum of understanding includes several areas of cooperation, including the development of human resources in the digital field, strengthening government infrastructure and digitization, enhancing responsible AI governance, and strengthening the implementation and practices of personal data protection.
Budi emphasized that the signing of this memorandum of understanding is a tangible form of collaboration between the Indonesian government and global industry players to accelerate the progress of the country’s digital sector.
As a country aspiring to be among the top 10 economies in the world by 2045, he stated that Indonesia cannot merely stand as a market or technology user. Instead, Indonesia must position itself as a strategic partner in global digital technology development.
“Therefore, as the Minister of Communication and Informatics, I earnestly request global technology companies, including Microsoft, to continue promoting knowledge transfer and technology transfer in various collaborations,” he said.
He hopes that this collaboration will be a stepping stone towards Indonesia’s advancement. Budi added that responsive and adaptive policies are essential to ensure that digital technology progress benefits all layers of society.
“In formulating these digital policies, each country has its approach,” he said.
He cited the United States, which emphasizes active involvement of the private sector; China, which prioritizes the central role of the government, or the European Union, which prioritizes digital regulation and data transparency.
“One of the good practices we can adopt is the Prozorro application, which is an electronic-based public procurement system built and used by the Ukrainian government, and its development funded by the private sector,” Budi added.
He stated that Prozorro successfully increased the transparency of procurement processes and saved the Ukrainian government budget by US$1.9 billion in two years of operation.
“Reflecting on this good practice, the reciprocal relationship between the government and industry players is believed to drive Indonesia’s digital policy space capable of accommodating innovation, economic growth, and benefits for all parties,” he said.
The use of generative artificial intelligence or generative AI to complement work activities can boost the economy. A study by ELSAM in collaboration with Access Partnership shows that generative AI can help unlock production capacity by US$2 43.5 billion (IDR 3,700 trillion) across the economy, equivalent to 18 percent of the 2022 GDP. Meanwhile, research by Kearney and EDBI found that AI could add US$ 366 billion to Indonesia’s GDP in the next decade.
President Director of Microsoft Indonesia, Dharma Simorangkir, said it is important for Indonesia not only to be a spectator but also to be an actor in realizing, developing, and perfecting AI technology.
“Our journey to develop and reap benefits from AI is a long journey and indeed needs to be done together, by industry players, ministries, educational institutions and other organizations in Indonesia,” Dharma said.
Through this collaboration, he hopes to trigger new innovations and collaborations to create real responsible impacts.
