Indonesia’s digital minister said Tuesday the country must transform its high adoption of artificial intelligence into greater productivity, stronger competitiveness, and higher economic value as it seeks to position itself as a regional AI innovation hub.
Communication and Digital Minister Meutya Hafid noted that Indonesia’s AI adoption rate has reached 92 percent, but its use for productive activities and value creation remains limited. She urged startups to accelerate innovation and commercialization.
“Despite 92 percent AI adoption, its productive use is still minimal. That is why we welcome the emergence of new startups to convert technology into real economic value,” Meutya said in a statement in Jakarta.
She highlighted Indonesia’s vast digital potential, with 278 million people and more than 230 million already connected to the internet—representing 80.66 percent of the population—making it one of the largest digital markets in the Asia-Pacific.
Indonesia’s digital economy has surpassed US$80 billion and is projected to exceed US$130 billion by 2025, driven by technological innovation, digital transformation across traditional sectors, and a rapidly expanding pool of digital talent.
To strengthen the ecosystem, the government has launched the Garuda Spark Innovation Hub, a platform linking AI-based startups with global technology firms and venture capital to accelerate product development and market access.
“We aim to shift from being merely a digital market to becoming an AI innovation hub in ASEAN,” Meutya said.
The government is also partnering with global companies to accelerate skills development, including through the Google for Startups Accelerator, which has graduated 63 Indonesian startups since its launch last year.
Those graduates are part of more than 2,500 active startups contributing directly to the digital economy, underscoring the sector’s growing role as a key driver of national economic growth, she added.
Originally written by: Farhan Arda Nugraha, Martha Herlinawati Simanjunta
Source: ANTARA
Published on: 25 February 2026
Link to original article: Indonesia pushes AI drive to lift productivity, competitiveness
