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AI Global Trends, Indonesia’s Strategy, and Jakarta’s Future Potential
Artificial Intelligence (AI) is one of the most transformative technologies of the 21st century, reshaping industries and economies globally. By enhancing productivity, driving innovation, and enabling sustainable development, AI has become a cornerstone of modern progress. According to PwC, AI is expected to contribute up to $15.7 trillion to the global economy by 2030, making it one of history's most impactful technological advancements. Nations across the globe are competing to harness the potential of AI (Mishra et al., 2024). They are investing in research, infrastructure, and ethical frameworks to ensure its responsible use. Moreover, a report by the International Data Corporation (IDC) projects global spending on AI systems to reach $632 billion by 2028, reflecting its rapid adoption across industries. This article explores how AI is shaping global trends, its adoption in Indonesia, and its potential to transform Jakarta into a prominent global city.
The Implementation of AI Globally
Countries such as the United States, China, and members of the European Union are leading in the development and implementation of AI. According to the AI Index 2024 Annual Report by Stanford University, the United States has the highest global investment in AI research and development. Meanwhile, China stands out for its numerous AI-related patent filings, demonstrating its rapid pace of innovation and application. At the same time, the European Union is establishing global standards for responsible AI through ethical regulations as outlined in the AI Regulation Framework.
Many countries around the world have developed their own strategies for advancing AI. For instance, the United Kingdom has established a National AI strategy, the United States has a National AI Research and Development Strategic Plan, Canada has introduced a Pan-Canadian AI Strategy, and New Zealand has an Action Plan for the Digital Strategy for Aotearoa (the Māori-language name for New Zealand). These comprehensive strategies reflect each country’s commitment to leveraging AI as a driver of innovation, competitiveness, and inclusive growth in the years to come.
The integration of AI into the economy has significantly boosted productivity and cost efficiency, transforming industries such as healthcare, education, and public policy worldwide. As a result, 42% of surveyed organizations reported a reduction in operational costs, while 59% experienced revenue growth, highlighting AI's critical role in driving business success (Stanford University, 2024). This global momentum highlights the transformative implementation of AI across industries, reshaping the landscape.
Furthermore, AI is also transforming healthcare by enhancing diagnostics, predicting pandemics, and speeding up medical research. The Food and Drug Administration’s (FDA) approved of 139 AI-based medical devices in 2022, along with tools like EVEscape and AlphaMissense for mutation classification, highlights the AI impact on healthcare. Additionally, AI is driving scientific innovation through technologies like AlphaDev, which optimizes sorting algorithms, and GNoME, a tool for materials discovery, revolutionizing how researchers tackle major challenges.
In the education sector, AI is transforming this sector by improving teaching, learning, and administration (World Bank, 2024). For teachers, AI tools provide personalized support, simplify lesson planning, and reduce workloads. Students benefit from AI-driven tutoring and tools that promote responsible tech use for academic success. Administratively, Ecuador is already using AI for teacher placement, and it’s called Quiero Ser Maestro (I want to be a teacher). This AI has significantly improved teacher placement by leveraging advanced algorithms to match candidates with school vacancies based on their preferences and qualifications. This approach has enhanced placement efficiency and optimized school staffing outcomes (Elacqua et al., 2022). As a result, AI in education makes everything run faster and better and provides important information to make better decisions, which leads to better and more inclusive education systems and, therefore, better learning results.
The next sector affected by AI is public services, which is transforming this sector by improving efficiency, accessibility, and citizen engagement. In Singapore, one of the parts of the Smart Nation initiative uses AI for traffic management to optimize traffic flow (Kumar, 2024). In Estonia, their government uses AI chatbots to manage common citizen inquiries, which helps reduce the workload of civil servants and improves service accessibility (Hamer, 2024). Hence, all of the global trends of the government in utilizing AI are to enhance public services, promote transparency, and create more equitable and efficient governance in the government.
These examples of AI implementation globally reflect the strong commitment of nations to leveraging AI for advancements in healthcare, education, governance, and beyond. This collective effort underscores AI's potential to drive productivity, enable innovation, and stimulate sustained economic growth worldwide.
Indonesia's National AI Strategy Toward Golden Indonesia Vision 2045
The implementation of AI in Indonesia is similar to that in other countries with a comprehensive AI development strategy. Indonesia has established a National Strategy AI Implementation 2020-2045 (Strategi Nasional Kecerdasan Artifisial Indonesia). According to this National Strategy, Indonesia has identified five key sectors prioritized for AI development: 1) Healthcare, 2) Bureaucratic Reform, 3) Research and Education, 4) Food Security, and 5) Mobility, and Smart Cities.
This National Strategy is aligned with the National Long-Term Development Plan (RPJPN) for 2025-2045, as both emphasize technological transformation as a key element in achieving the Golden Indonesia Vision 2045. The National Strategy of AI implementation supports the RPJPN agenda by strengthening technological innovation, developing skilled human resources, and enhancing economic competitiveness and governance efficiency. This alignment ensures the strategic use of artificial intelligence to promote inclusive, sustainable, and globally competitive national development.
This alignment extends to the healthcare sector, where the Indonesian government has introduced the "4P" framework which stands for predictive, preventive, personalized, and participative health services. This approach aims to anticipate disease symptoms, enabling proactive lifestyle adjustments to improve health outcomes. Through the analysis of extensive medical data, AI facilitates the delivery of precise, personalized treatments, ensuring more effective and efficient healthcare solutions that contribute to the broader goals of sustainable and inclusive national development.
In the bureaucratic reform, the use of AI in Indonesia aims to automate repetitive tasks carried out by government agencies. Another key initiative involves developing an AI system that supports the government in monitoring budgets by examining and identifying inconsistencies in budget proposals. This will decrease the workload for civil servants and enhance community services, similar to the approach taken by the Estonia Government.
Based on the National Strategy guidebook, AI is being implemented through an adaptive learning system that adjusts the material and difficulty level based on each student's abilities. Additionally, an adaptive assessment system will be used to select relevant questions customized to individual needs, allowing for an accurate evaluation of student competencies based on dynamic assessment results. From a research perspective, the government will establish an ecosystem that collaborates with multiple stakeholders. The integration of AI in Indonesia's education and research is a strategic advancement that enhances the personalization of learning and assessments to improve the effectiveness and equity of education.
The next sector prioritized for AI implementation in Indonesia is food security. AI is expected to significantly enhance land productivity sustainably by utilizing satellite imagery for various analyses, including electricity access, commodity identification, and crop yield projections. In addition, AI in this plan can predict crop failures, disease outbreaks, and food stock requirements and provide efficient distribution recommendations to prevent shortages of staple foods.
Lastly, the sectors that Indonesia prioritized are Mobility and Smart Cities. The Indonesian government is collaborating with the Bandung Institute of Technology (ITB) to advance smart city development (Wicaksono, 2024). The plan highlights AI-powered traffic management as key to smart city mobility. Furthermore, AI will play a crucial role in disaster risk management, predicting earthquakes, forecasting floods, and anticipating volcanic eruptions through seismic and geological data analysis.
Indonesia's National Strategy for AI Implementation 2020–2045 establishes a strong foundation for AI adoption in key sectors, addressing national priorities and transforming public services. Complementing these efforts, the private sector has begun integrating AI technologies across various industries, demonstrating its potential to accelerate innovation, improve operational efficiency, and address emerging challenges (East Ventures, 2023). This collaboration between public and private initiatives highlights the increasing significance of AI in Indonesia's development and plays a pivotal role in advancing the vision of achieving the Golden Indonesia Vision 2045.
Unlocking Jakarta’s Potential for AI Implementation
Indonesia’s proactive approach to AI, as outlined in the RPJPN 2025-2045, reflects a strong commitment to maximizing technology for national development. As the nation works towards the goals of Golden Indonesia 2045, Jakarta plays a key role, standing out as one of the leading cities in Southeast Asia in AI interest and adoption, as highlighted in the E-conomy SEA 2024 report.
Moreover, Jakarta has already launched the Regional Development Work Plan (RKPD) for 2025, which outlines strategic priorities and development for the year. The RKPD emphasizes addressing key challenges such as accelerating technological adoption, including Artificial Intelligence (AI), and enhancing public services to improve Jakarta's competitiveness as a global city.
On the other hand, the implementation of AI in Jakarta is still in its early stages, but there is significant potential to transform various sectors. One notable example in Jakarta is the use of AI to help reduce traffic congestion. AI will play a significant role in monitoring and adjusting traffic light timings using data from Google's internal database. (Jakarta Provincial Government, 2023)
The potential for implementing AI in Jakarta holds great potential, especially with the foundation provided by Jakarta Smart City initiatives for integrating AI-driven solutions across various urban sectors. Since there is already existing digital infrastructure in place, Jakarta has the opportunity to enhance and expand AI applications without starting from scratch. The city can utilize AI to optimize public transportation systems, improve energy efficiency, and enhance predictive maintenance for roads, bridges, and utilities. By building on these existing frameworks, Jakarta can accelerate its transformation into a fully connected, and data-driven metropolis.
Hence, Jakarta is at the forefront of AI adoption in Indonesia, advancing with Jakarta Smart City and existing digital infrastructure to drive innovation. With strong government commitment and strategic policies, AI investment opportunities are expanding in the transportation, healthcare, and education sectors. Moreover, investing in AI development aligns with the central government’s RPJPN 2025-2045, ensuring synergy between Jakarta and national priorities. As Jakarta accelerates its digital transformation, it creates a supportive environment for investors. The opportunities for AI implementation are vast, offering significant potential for growth and innovation across various industries.
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