The government is wrapping up the drafting of an artificial intelligence roadmap and regulation, expected to be issued by the end of the year, as Indonesia needs more human talent and investment to keep pace with the technology’s growth. The Communications and Digital Ministry is currently working on a white paper that will serve as a guideline for all ministries and state agencies in adopting AI according to their respective functions. It is also preparing a regulation on ethics, safety and security in the use of the technology by the public and industry. Both documents are expected to be issued as presidential regulations (Perpres).

The ministry is still drafting both documents, said Second Deputy Communications and Digital Minister Nezar Patria, which are expected to be submitted to the State Secretariat by the end of September. “We aim to finish the whole legal process by the end of the year,” Nezar told The Jakarta Post after a discussion on AI at the Indonesian International Islamic University (UIII) in Depok, West Java, on Tuesday.

“On the ethics regulation, we seek to balance innovation and protection, including personal data safeguards, while also taking into account the impact of AI use on the public and tech industry,” he continued. The AI regulation plan was a follow-up for a communications ministerial circular issued in late 2023 by then-minister Budi Arie Setiadi. The circular served as a temporary guideline on the ethical use of AI. Calls have been raised in recent months for the government to expedite the regulation issuance over potential rights violations from AI usage. As Indonesia has become a large market for AI, Nezar acknowledged the importance of regulation to mitigate risks from the rapidly advancing technology.

Communications and Digital Minister Meutya Hafid (right) and Deputy Minister Nezar Patria attend a meeting with House of Representatives Commission I overseeing communications on Sept. 15 at the Senayan Legislative Complex in Central Jakarta. (Antara/Rivan Awal Lingga)

However, he also admitted Indonesia remains a “very early stage” in AI development. “We have a potential to develop AI, but we’re facing major problems of infrastructure gaps, a lack of innovation, limited investment in research and development and a shortage of AI talent,” the deputy minister said, adding Indonesia would need 12 million experienced workers to develop the technology and strengthen its digital ecosystem.

Shaanti Shamdasani, CEO of Strategic ASEAN International Advocacy and Consultancy, concurred. She recommended developing Global South nations, such as Indonesia, to form partnerships with leading countries in AI governance. The partnership, she added, would allow Indonesia to access best practices it currently lacks. “In the Global South, I think Indonesia can play a leadership role in [advancing] AI governance,” she said in Tuesday’s discussion. CEO of digital agency Vemebo, Tyovan Ari Widagdo, said AI regulation would also be crucial in protecting workers, who risk losing their jobs to automation. “If the private sector lay off workers due to AI adoption, I think there should be some form of compensation to the workers and the government,” he suggested. 

Acknowledging the lack of investment for AI technology in Indonesia, Tyovan said Indonesia could leverage its rich energy, electricity and water resources to attract more investors. The natural resources put the country in an advantageous good position to catch up with neighbors Vietnam and Malaysia, which currently have more developed technology ecosystems. He also stressed the importance of hiring more AI experts, noting the limited number of work-ready people would make hiring costs high. “All stakeholders need to collaborate to address these problems, because if we talk about AI development, but don’t have the talent, it’s useless,” Tyovan said. “We will only become customers.”

This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/indonesia/2025/09/17/ai-regulations-slated-for-this-year-amid-talent-investment-shortage.html.