Driving Value and Ethical Innovation in AI for Indonesia’s Business Landscape
Indonesia recently celebrated its 79th Independence Day in August, reaffirming its commitment to a transformative digital journey in this year’s celebration. As Southeast Asia’s largest economy, the nation is awakening to the untapped potential of data and artificial intelligence (AI) to redefine how businesses operate and compete.?
However, the true challenge lies not just in adopting AI but in embedding it into the fabric of organizations to drive tangible value. This was the focal point of the 46th ASEAN Innovation Business Platform (AIBP) Conference and Exhibition in Jakarta, Indonesia , featuring industry leaders from diverse sectors such as e-commerce, energy, banking, and digital infrastructure, including PERTAMINA EP , PLN Icon Plus , PT. BANK NEGARA INDONESIA (Persero) Tbk. , PT. Semen Indonesia (Persero) Tbk. and Bukalapak
What lies ahead in this race to use AI to the fullest? And how can Indonesia turn this digital promise into a powerful reality, in hopes of driving its economic growth while staying ethical?
Tapping the power of data as the catalyst for growth
Indonesia’s gross domestic product growth has been forecast to average 5.1% per year from 2024 to 2026, driven by a pickup in public spending, rising business investment and steady consumer demand which will heavily rely on data-driven insights. Industry leaders emphasise that data acts as the lifeblood of AI, much like energy for industrial operations.?
Producing around 600,000 barrels of oil per day, even a $1 improvement in production efficiency can translate into millions in savings for Pertamina, Indonesia’s leading oil and gas producer. However, like many in the energy sector, Pertamina faces the challenge of unifying disparate data sources to create a cohesive, actionable dataset. This underscores the critical need for robust data infrastructure as the foundation of any successful AI initiative.
We are going to continue with this digital transformation by accelerating it. We have this initiative, digital factory, where we really deliver three different digital solutions - digital intensive solution, data intensive solution and analytics intensive solution. This digital factory will not be led by the product owner, which is coming from the business, they will come from their domain, upstream, midstream, downstream and even from renewable energy. Working with this factory to deliver a solution and value is the target. So again, not focusing on the cost to drive a solution, but on what will be the impact of the value that will be coming from the solution.
Sigit Pratopo , SVP Integrated Enterprise Data and Command Center, Pertamina
A survey conducted by AIBP reveals that more than 30% of businesses and institutions in Indonesia aim to increase their investment spending on digital technologies by more than 20%, slightly higher compared to other countries in ASEAN. With bigger spending on digital technologies, data infrastructure should be one of the first priorities in order to build a stronger foundation for AI and other future technologies to come.
Embedding AI into organizational culture
AI is as impactful as the people operating it. The World Bank estimates a shortfall of 9 million skilled ICT workers in Indonesia between 2015 and 2030, with a deficit of 600,000 to 1.2 million technology, media, and telecommunication (TMT) talents by 2030. To address this, fostering digital capabilities and a data-driven mindset and culture is crucial.?
Bima Tjahja , SVP Data at Bukalapak shared that AI is more than just a tool—it’s a mindset. The company’s focus on fostering a data-driven culture ensures that AI isn’t confined to the IT department but is integrated into everyday decision-making across all teams. This cultural shift is essential for AI to evolve from a novelty to a core driver of business value. When data insights are acted upon organization-wide, AI can truly start to deliver on its promise.
Solving real-world problems with AI
With that in mind, for AI to truly add value, it must be rooted in solving real business problems and meeting customer needs. This approach ensures that AI initiatives are not just technologically impressive but also commercially viable and strategically aligned with the organization’s goals.?
According to an Oxford report , while Southeast Asia is generally prepared to use AI, many organisations struggle to translate their strategies into actual capabilities, risking a misalignment of AI initiatives with operational goals or market needs.
PLN Icon Plus’s journey in digital transformation is a prime example of effective AI application. Over the past five years, the company has not only reduced customer complaints by 30%, but also achieved a 1-2% improvement in cost efficiency in power generation. This demonstrates that AI’s real value comes when it’s used to tackle genuine business challenges.
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During (digital) transformation, we realised that we have to change the way people think about data. So 4-5 years ago, we developed the data infrastructure, and also the capability of the people - we trained the people, from the engineers that are now based in each department, and also development capabilities along with the infrastructure. It is not the end right now, but the results 4 years on from the digital transformation include… from power generation, which is one of the biggest parts of PLN, also (saw) increase of 1-2% of cost efficiency
Ari Rahmat Indra Cahyadi , President Director, PT PLN ICON Plus
Ethical considerations in AI also cannot be overlooked. At the same conference, Handika Hakim, VP, Data Management and Analytics, BNI highlighted the importance of recognizing and addressing biases in AI models. Unchecked biases can lead to significant issues, from perpetuating inequalities to damaging trust in AI systems. Additionally, staying ahead of regulatory requirements is crucial to ensure that AI initiatives are effective, compliant, and ethical to maintain stakeholder and customer trust.
It is easy to get caught up in the excitement of new technology and overlook the importance of clear, measurable goals. SIG’s focus on key performance indicators (KPIs) to prioritize data collection and accessibility reflects a disciplined approach to AI. By identifying key data points and ensuring they are accessible to stakeholders, SIG’s AI efforts align with business priorities and that the data driving AI is relevant and actionable.
Information from all those points (plants, packing plants, retailers) is actually very important. The most important thing is if we have visibility end to end in our ecosystem, that will be very beneficial for (understanding what we are facing) in smart industry, innovation. We are a market leader right now, but competition is increasing, market demand is unpredictable right now, and there's also an internal cost push. So we need to gather as much data as we can. Previously we didn't have any visibility on how sales are, but now we are able to optimise by focusing on the data and the information we get. We are also able to provide information to management and stakeholders.
Anindio Daneswara , Senior Vice President - Group Head of ICT, Semen Indonesia
Turning the AI dream into tangible reality
At the end, to fully harness the benefits of AI, businesses must start with a strong data foundation, cultivate a culture that values data-driven insights, and ensure that AI initiatives are grounded in solving real, pressing business challenges. Only then can AI deliver its full potential, transforming not just operations but the entire strategic direction of businesses, turning the digital promise into a powerful reality.
Read full takeaways from the conference:
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