Ethics before algorithms: Indonesia's SOEs put people at the heart of AI

AI in HR isn't about replacing people-it's about smarter teams with ethics and human checks. Focus on skills, fairness, and real needs before chasing shiny tools.

Categorized in: AI News Human Resources
Published on: Nov 02, 2025
Ethics before algorithms: Indonesia's SOEs put people at the heart of AI

Human-Centered AI: The New Mandate for HR Leaders

The conversation around AI in the workplace has shifted. It's no longer about if, but how. The consensus from a recent Indonesian Human Capital Forum (FHCI) discussion is clear: AI should be an ethical, human-centered tool for augmentation, not replacement.

For HR professionals, this isn't just a technical update. It's a strategic imperative to build a more capable and efficient workforce.

AI Doesn't Replace Your Team; It Upgrades Them

Think of AI as a tool to enhance human efficiency and intelligence. The goal is to strengthen employee capabilities, not make their roles obsolete. Pratama Adieputro Suseno of PT PLN (Persero) shared how they apply AI across most management functions.

PLN developed an AI-based system called KESATRIA. It recommends specific training tailored to individual employee needs. This allows staff and trainers to find relevant materials instantly, eliminating the need to sift through databases manually. It's a practical example of using tech to directly invest in your people.

The Human Checkpoint: Preventing Bias in AI-Driven Hiring

Using AI in recruitment presents serious ethical questions. Steven A. Yudiyantho from PT Bank Rakyat Indonesia warned that companies must be transparent about AI-driven decisions and actively guard against discrimination.

AI can speed up the hiring process, but human oversight is non-negotiable to prevent systemic bias. As Yudiyantho stated, "The more we rely on AI, the greater the need to humanize HR processes." This means HR must remain the final arbiter to ensure fairness.

For a deeper look into this challenge, research from institutions like Harvard Business School offers valuable insights on managing AI bias.

Stop Chasing Trends: Avoid the 'Digital Death Spiral'

Professor Simon Tanner of King's College London warns of a "Digital Death Spiral." This happens when leaders adopt technology based on hype rather than a proven need. Many organizations jump on the AI bandwagon simply because it's trending.

A successful digital strategy depends on understanding your data, measuring the impact of new tools, and, most importantly, developing your people's skills. Before you buy the software, you must have a plan for the people who will use it.

The Real Transformation Is Human

While Indonesia's AI adoption is growing, its use is often limited to creative content instead of productive innovation. The government is focused on strengthening digital literacy to close this gap.

For HR, this is the core mission. Developing digital talent is the key to an inclusive and secure transformation. The focus must be on building a future-ready talent ecosystem, which requires a deep investment in upskilling and a human-first mindset. Getting your team the right skills and popular certifications is the first step.


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