Artificial Intelligence in Indonesia

By Carla Monintja

We are all aware of the growing presence of AI in modern life and how it has become inseparable from our daily routines. But what exactly is AI? AI, or Artificial Intelligence, is a technology developed by humans to simplify various aspects of our lives.

Let’s take a look at how AI has significantly impacted modern life. One of the most obvious examples is our reliance on search engines, particularly Google. We turn to Google for almost anything—how to cook a specific dish, the current traffic situation, today’s weather—and Google has answers to 99.9% of our questions. How remarkable AI is!

AI’s influence extends to more complex areas, such as the financial sector. Over the past decade, financial transactions have become increasingly streamlined thanks to AI. Cashless transactions are now the norm. In Indonesia, just like in many other parts of the world, AI is deeply embedded in everyday life. Some jobs have been supported or even replaced by AI, leading to a significant reduction in the need for human labor. We can say that the world is indeed moving toward automation.

Since the Industrial Revolution in the 18th century, humans have been driven by the desire to create innovations that make life easier. The Industrial Revolution marked a new era of human civilization, where machines began to replace manpower. Today, human inventions have evolved further with the advent of AI.

There is, however, a love-hate relationship between humans and AI. While AI undoubtedly improves our lives and makes tasks easier, there is also concern about the widespread replacement of human jobs by AI. This is where government intervention becomes crucial in regulating AI usage.

In Indonesia, AI is governed by Circular Letter No. 9 of 2023, issued by the Ministry of Communication and Information Technology on December 19, 2023. This circular aims to establish a regulatory framework to ensure the responsible and safe implementation of AI in the country. However, as a “soft law,” the circular lacks coercive power and does not impose sanctions for violations related to AI usage.

Despite its limitations, the Circular Letter is an essential foundation for future AI regulations in Indonesia. In my opinion, while the government cannot fully prevent the impacts of AI, regulations—particularly those focusing on the ethical use of AI—are extremely important. We need to avoid situations where AI leads to significant social issues, such as widespread unemployment.

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KASS International is an established Intellectual Property Firm which offers a one-stop solution for IP matters in Malaysia, South East Asia, and worldwide.