Artificial Intelligence in Indonesia: The current state and its opportunities

Most of the breakthroughs in artificial intelligence (AI) development are happening elsewhere, but Indonesia is not lagging behind. With a young, tech-savvy population and favorable macroeconomic trends, Indonesian companies are beginning to adopt and advance on AI’s vast opportunities. Local and international investors are also eyeing AI’s potential for Southeast Asia’s largest economy. 

The Indonesia National AI Strategy (Stranas KA) 2020-2045 lays the groundwork for AI growth by promoting collaboration among the government, industry, academia, and the community. To facilitate coordination between the public and private sectors, an AI Innovation center called Pusat Inovasi Kecerdasan Artifisial (PIKA) has been established, and at the forefront of implementation is the “Collaboration to accelerate Indonesian Artificial Intelligence innovation” (KORIKA), a collaborative effort led by the Artificial Intelligence Industry Research and Innovation Collaboration. Indonesia anticipates that AI will make a significant contribution of US$366 billion to its economy in the next decade.

Current AI applications in Indonesia

AI is already making its mark in various sectors in Indonesia, spanning logistics, HR, education, cybersecurity, and customer service. Implementing AI improves operational efficiency and enables businesses to provide AI products that boost client productivity. Here are some notable current AI applications, including those within East Ventures’ ecosystem:

Logistics

Waresix, the largest logistics integrator in Indonesia, has developed an AI-based operating system known as the waresix Operating System (wOS) to streamline logistics and supply chain processes. Within the wOS, AI is utilized to analyze historical data, optimize pricing, and enhance delivery routes. This allows waresix to offer competitive price comparisons in a shorter time frame. 

AI is also employed in the wOS for the smart routing feature, which determines the optimal delivery route by considering various field factors. This not only shortens travel time but systematically reduces carbon emissions, enhances fuel efficiency, and prolongs the lifespan of trucks.

Meanwhile, McEasy, a Software-as-a-Service (SaaS) provider for logistics and transportation operators, also utilizes AI technology in one of its products, the Vehicle Smart Management System (VSMS). McEasy’s VSMS simplifies fleet management and monitoring processes by leveraging real-time analysis supported by AI technology. The VSMS streamlines scheduling, improves the accuracy of Estimated Time of Arrival (ETA), and ensures overall travel safety.

HR management

Mekari, a leading software-as-a-service (SaaS) company in Indonesia, is integrating an AI-powered feature, named Airene, into its main products. For instance, Jurnal utilizes Airene to summarize financial reports and offer valuable insights and recommendations. Furthermore, in Qontak Omnichannel, Airene helps to summarize customer conversations and assist agents in crafting improved and relevant responses. In the near future, Airene will also enable a more advanced Qontak chatbot capable of handling customer inquiries with minimal agent involvement, allowing agents to prioritize more critical tasks. Likewise, Talenta will also soon be empowered by Airene to help the HR team extract data and insights faster.

Education

In the education sector, Indonesia has witnessed the integration of AI into online learning platforms, including Ruangguru. It has applied AI in the service, called Roboguru, since 2021. Roboguru allows the users to take and upload a picture of a problem, and will provide the answer and how to solve the problem. By leveraging AI, educational platforms can empower students to learn more efficiently and effectively, ensuring a customized learning journey for every student.

Cybersecurity

Peris.ai is an example of how AI can be used in cybersecurity. It has developed a product that combines AI and machine learning to help protect IT systems. By continuously learning and adapting to new threats, their system can provide better defense against cyber attacks. AI and machine learning can analyze large amounts of data and generate insights and recommendations that go beyond what humans can do manually. 

Customer service technology

Conversational commerce is on the rise in Indonesia, where consumers want to engage in conversations with service and goods providers before making purchasing decisions. However, not all companies have the capability to offer optimal experiences, and several AI-powered companies have emerged as a solution.

Bahasa.ai is a chatbot technology company that leverages AI to provide real-time assistance to customers, thus enabling businesses to allocate their resources more strategically. With Natural Language Processing (NLP) technology, businesses can entrust AI to handle conversations with users, specifically regarding product knowledge. 

Moreover, Feedloop, a startup specializing in low-code and no-code technologies, enables companies to integrate AI in their operations by building their own AI Co-Pilot. The Feedloop AI platform acts as a virtual personal assistant, offering company and product knowledge, and automating actions to increase productivity. 

Promising AI opportunities 

While the implementation of AI in Indonesia is yet to be fully realized, its potential is promising, particularly in addressing healthcare inequality and revolutionizing various industries. Healthcare inequality poses a significant challenge in Indonesia, but AI can be a game-changer by extending its access to remote areas. By studying vast amounts of historical doctors’ treatment and patient data, AI can replicate the advice of numerous doctors at a lower cost, enabling accurate diagnoses and raising the standard of care. Beyond healthcare, AI can enable scientists and engineers to make breakthroughs in various fields. Industries like agriculture, manufacturing, and mining can benefit from AI’s capabilities, revolutionizing practices and optimizing manufacturing operations  for increased efficiency and productivity.

In agriculture, AI applications in crop monitoring, disease detection, and yield optimization can revolutionize farming practices. By analyzing satellite imagery, weather data, and soil conditions, AI can help farmers to optimize their approaches, especially in the face of climate change. Furthermore, the financial services sector has an opportunity to leverage AI to address the low financial literacy prevalent in Indonesia. By analyzing diverse financial needs and behaviors, AI-powered solutions can tailor financial products and services, expanding access to financial resources and enabling more accurate credit scoring for underserved communities.

To fully embrace AI across sectors, Indonesia must prioritize responsible data management in compliance with regulations. By establishing responsible practices in data collection, storage, and use, Indonesia can create an environment that supports the ethical and effective use of AI, fostering increased productivity and improved outcomes. Embracing the possibilities of AI, Indonesia is poised to make remarkable progress in all sectors and shape a brighter future for all Indonesians.