Indonesia’s digital service governance lacks specific regulations for artificial intelligence (AI), as highlighted in a report by the Communications and Digital Ministry and the UK. The AI Policy Dialogue Country Report reveals weak enforcement of the Personal Data Protection (PDP) Law and the One Data Initiative. Nearly 20% of the population, approximately 57 million people, still lack reliable internet access, creating disparities in AI development. Additionally, the country faces a digital talent shortage, needing 9 million tech workers by 2030, according to a government-UNESCO report. Fragmentation across government, academia, and the private sector hampers AI innovation. The lack of clear institutional mandates and inadequate government support restricts collaboration and slows progress throughout the AI value chain—from research and development (R&D) to commercialization. Addressing these challenges is crucial for unlocking Indonesia’s full digital economy potential.
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