Indonesia is at a crucial juncture in its digital and economic development. Major initiatives like the National Artificial Intelligence Strategy (Stranas KA) and the Ministry of Finance’s vision for deepening the financial sector by 2045 are shaping the future. Artificial Intelligence (AI) has become a key focus, central to the country’s long-term strategy. In this context, the Chamber of Indonesian Entrepreneurs (KEIND) and TAB Global hosted a focus group discussion at the House of Representatives to explore how AI can enhance Indonesia’s competitiveness in trade, finance, and innovation.
This event served as a precursor to the Asian Banker Summit 2025, set to take place in Jakarta on May 21-22. The summit will bring together global industry leaders, regulators, policymakers, and innovators to discuss the future of finance, technology, and the digital economy in the Asia Pacific.
Small and Medium-Sized Enterprises (SMEs) Play Key Role
Afda Rizal Armashita, Chairman of KEIND, opened the discussion by emphasizing the importance of small and medium-sized enterprises (SMEs) in the digital economy. He stressed the need for AI adoption to be inclusive, ensuring benefits for businesses of all sizes, not just large corporations. Armashita highlighted KEIND’s commitment to fostering collaboration between entrepreneurs, policymakers, and innovators to ensure AI drives sustainable economic growth.
AI and Indonesia’s Digital Transformation
Foo Boon Ping, President of TAB Global, framed the discussion within Indonesia’s broader digital transformation. He pointed to the country’s leadership in Southeast Asia’s digital economy, supported by national initiatives like Stranas KA and the Ministry of Finance’s 2045 roadmap for financial sector growth. Ping noted that Indonesia’s success in AI adoption would depend not only on technological readiness but also on effective institutional coordination and inclusive policy frameworks. The goal of the discussion was to develop strategies to ensure that AI fosters inclusive and sustainable growth.
Bridging Policy and Execution
The session included speakers such as Adisatrya Suryo Sulisto, Vice Chairman of Commission VI of the House of Representatives, and Entjik S. Djafar, Chairman of the Indonesian Joint Funding Fintech Association (AFPI). They stressed the importance of bridging gaps between policy ambitions and practical execution, as well as fostering public-private collaboration to ensure AI supports sustainable economic development.
Indonesia’s efforts were recognized as timely, with significant investments like Microsoft’s $1.7 billion commitment and NVIDIA’s $200 million AI center in Solo. These investments highlight the country’s growing leadership role in the digital economy. The focus now needs to be on coordinated action to address gaps in infrastructure, regulation, and talent development.
AI’s Role in National Strategy and Legislation
The discussion began by addressing AI’s place within Indonesia’s national economic and legislative framework. Sulisto emphasized the need for strong legislative support, including the Anti-Monopoly and Consumer Protection Laws. These laws are crucial for ensuring that emerging technologies like AI foster innovation without creating monopolies or systemic risks. He also highlighted the importance of safeguarding smaller businesses and new entrants in Indonesia’s digital economy.
AI in Finance and Regulation
The conversation then shifted to AI’s impact on Indonesia’s financial services sector. AI is already being used in areas like fraud detection, anti-money laundering, and credit scoring. However, adoption is uneven, with smaller banks and rural institutions lagging behind. As AI technology advances, regulators are struggling to keep up. Examples like Singapore’s Veritas Toolkit show how regulators can ensure fairness and transparency in AI applications. Bank Indonesia and the Financial Services Authority (OJK) have taken initial steps with regulatory technology platforms, but more comprehensive guidelines are needed to manage ethical and systemic risks.
Fintech and Payments Innovation
The discussion also explored the role of fintech in supporting financial inclusion, particularly for micro, small, and medium-sized enterprises (MSMEs). Djafar highlighted how fintech companies, particularly those involved with AFPI, are using AI to bridge financing gaps. Digital financial services are expanding rapidly, but Djafar stressed that efforts to increase financial literacy must accompany this growth. Financial education programs are helping people, particularly women entrepreneurs in rural areas, access loans through alternative credit scoring models.
Collaboration for AI Adoption
The discussion emphasized the need for sustained, structured partnerships between government, industry, and innovators to drive AI adoption. Djafar pointed to successful collaborations, such as AFPI’s work with the Financial Services Authority to develop responsible innovation standards. Public-private partnerships like NVIDIA’s AI center in Solo were also highlighted as models for building AI competencies across various sectors.
Sulisto stressed that collaboration frameworks must be institutionalized, with permanent national platforms for developing AI policies and solutions. He argued that policy co-creation should become the norm to ensure that regulation stays dynamic and aligned with technological progress.
Fairness, Inclusion, and Innovation
The conversation also addressed the challenges and opportunities of AI adoption in Indonesia. Sulisto called for stronger competition laws to prevent monopolistic behavior and ensure that innovation remains competitive. Djafar highlighted how AI-enabled fintech platforms are improving financial access, particularly for underserved communities. However, he stressed that these efforts must be paired with financial education to help users understand the risks.
Regulation must evolve alongside technology, and frameworks for fairness, transparency, and data privacy must be embedded from the outset. Risk management is crucial, with continuous monitoring of AI systems to prevent bias and errors. Djafar also pointed out that MSMEs still face challenges, including low digital literacy and uneven infrastructure, and stressed the need for partnerships with community organizations to ensure that underserved groups benefit from digital financial innovation.
Coordinated Action for a Sustainable Digital Economy
The discussion concluded with a call for coordinated action to help Indonesia lead in the AI-driven digital economy. AI has the potential to enhance trade competitiveness, transform financial services, and promote inclusion, but only through collaboration, sector-specific regulation, and proactive governance. The upcoming Asian Banker Summit 2025 will be a key platform for advancing Indonesia’s AI strategy, showcasing best practices and innovations that can help the country achieve sustainable, inclusive growth.
As Indonesia continues to strengthen its digital economy, it will be essential to build an ecosystem where trust, fairness, and resilience guide AI adoption and ensure broad-based economic benefits.
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