How AI Is Projected to Boost Indonesia's Economy by 1%
July 14, 2026 | 05:36 pmIllustration of Artificial Intelligence (AI). ShutterstockTEMPO. CO, Jakarta- Indonesia is striving to bolster several economic growth engines, includingartificial intelligence (AI)and. . .
July 14, 2026 | 05:36 pmIllustration of Artificial Intelligence (AI). ShutterstockTEMPO. CO, Jakarta- Indonesia is striving to bolster several economic growth engines, includingartificial intelligence (AI)and digital transformation, according to the Deputy for Coordination of State-Owned Enterprises Management and Development at the Coordinating Ministry for Economic Affairs, Ferry Irawan. These two sectors, Ferry said on Tuesday, are expected to raise economic growth by "0. 8 to 1 percent. "The additional growth stems from data center development and the resulting boost in productivity as the demand for digital infrastructure increases. Besides AI and digital transformation, the government is also seeking to bolster the productivity of micro, small, and medium enterprises (MSMEs). Indonesia is strengthening market access and investment by promoting various international collaborations involving forums such as the OECD, BRICS, ASEAN, and other global platforms. The goal is to adopt the best international practices to attract as much investment as possible into the country, which necessitates strong governance. "And making digital transformation, as well as green economy, a source of new growth," Ferry said. He also outlined that Indonesia's economy is still quite resilient amidst various global uncertainties and conflicts. He quoted the International Monetary Fund's (IMF) assessment in the July 2026 edition of the World Economic Outlook, which maintained Indonesia's economic growth at 5 percent throughout the year. This is despite the IMF reducing growth projections for other developing countries in Asia from the previous 5. 1 percent to 5 percent. The government's confident stance also follows the Asian Development Bank's (ADB) July publication that maintains Indonesia's prospects at 5. 2 percent. Meanwhile, at the same time, ADB projects a decline in the growth of Southeast Asian countries from 4. 7 to 4. 6 percent. Read:S&P: Indonesia's Economy to Grow 5. 1% in 2026, Below Govt TargetClick hereto get the latest news updates from Tempo on Google NewsRecommendedNubia to Launch World's First AI Agent Smartphone1 hari laluNubia to Launch World's First AI Agent SmartphoneNubia announces its latest smartphone, claimed to be the world's first AI agent smartphone, at the World Artificial Intelligence Conference (WAIC). Meta Removes AI Feature on Instagram Following Public Backlash1 hari laluMeta Removes AI Feature on Instagram Following Public BacklashThe feature is part of the launch of Muse Image, a new AI image generator on Instagram. Apple Sues OpenAI over Stealing 'Trade Secrets'2 hari laluApple Sues OpenAI over Stealing 'Trade Secrets'Apple has accused ChatGPT and two of its ex-employees of misappropriating its trade secrets to benefit OpenAI's foray into consumer hardware. Why Is Malaysian PM Anwar Ibrahim Launching AI Avatar of Himself?3 hari laluWhy Is Malaysian PM Anwar Ibrahim Launching AI Avatar of Himself?The digital version of Anwar Ibrahim aims to help Malaysian citizens access government services and informationAI and Digitalization Poised to Drive Indonesia's Economic Growth4 hari laluAI and Digitalization Poised to Drive Indonesia's Economic GrowthCoordinating Minister Airlangga says that digital transformation will be the key to Indonesia's next economic growth. China to Restrict Exports of Advanced AI Models Worldwide4 hari laluChina to Restrict Exports of Advanced AI Models WorldwideChina's national security regulations consider any form of leak or theft of AI technology a violation. LBH Pers Slams Google Opposition to Copyright Bill4 hari laluLBH Pers Slams Google Opposition to Copyright BillGoogle's rejection of the Copyright Law is seen as an attempt to frame the amendment as a threat to information access and AI innovation. Why Should AI Strengthen Flood Warning Systems?4 hari laluWhy Should AI Strengthen Flood Warning Systems?WALHI suggests that AI should not only be utilized to strengthen early flood warnings, but also to identify the sources. Singapore Unveils Locally Trained Medical AI Model5 hari laluSingapore Unveils Locally Trained Medical AI ModelSingapore is adapting an AI model to local healthcare, initially targeting cardiometabolic and eye diseases. Meta Releases New Generative AI Model 'Muse Image'5 hari laluMeta Releases New Generative AI Model 'Muse Image'Meta's generative AI system is designed to create graphics and serve as a creative partner for users within the Meta Superintelligence Labs ecosystem.