Indonesia's government intends to embed artificial intelligence across key state programmes, including its $15 billion free-meal initiative, according to a draft presidential regulation seen by Reuters. The document outlines a roadmap for ministries and regional governments to adopt AI from 2026 to 2029, targeting economic growth that the government believes could lift gross domestic product by 12%, or $366 billion, by 2030.
The draft, which has not been previously reported and awaits President Prabowo Subianto's signature, positions AI adoption as a way to make Indonesia more competitive regionally. Companies including Meta Platforms, IBM and Microsoft contributed to the draft, said Wahyudi Djafar, a tech analyst who wrote parts of the regulation and sits on the government's AI task force. The companies did not immediately respond to requests for comment. Microsoft said in 2024 it would invest $1.7 billion over several years to expand cloud services and AI in Indonesia.
Free meal programme targeted for AI integration
The regulation specifies that AI will be used in President Prabowo's flagship free meals programme to design region-specific menus, monitor kitchen hygiene, predict food demand and detect irregularities. It would also integrate health data to provide early warnings of emergencies. The programme has faced criticism over transparency and safety after tens of thousands of children suffered food poisoning last year. The head of the effort was fired and arrested earlier this month, with irregularities detected in kitchen setup.
The draft states that AI-driven automation has enabled organisations to "achieve remarkable efficiency while reducing operational costs." AI will also analyse health checks in Indonesia's free health screening and tuberculosis testing programmes.
Analysts question readiness for AI development
Indonesia's progress on AI has lagged behind neighbours Singapore and Malaysia, which have secured billions from global tech firms building cloud and AI infrastructure. Analysts say the country lacks the chips and workforce skills needed to become an AI developer. Derwin Suhartono, a professor of artificial intelligence at Bina Nusantara University in Jakarta, said Indonesia "may stay as a consumer of products that foreign companies sell to." He added that while the government can use AI with a structured roadmap, "it's all rhetoric" at the execution level so far.
The draft reiterates plans for a "sovereign AI fund" to be handled mainly by the country's new wealth fund, Danantara Indonesia. It also suggests fiscal incentives for AI researchers and measures to plug talent shortages. A separate draft regulation requires government bodies to report AI-related risks, including misuse of biometrics, intellectual property violations and deepfakes.
Why this matters for government and IT professionals
Indonesia's push to embed AI in public programmes signals a growing market for AI for Government services across Southeast Asia. For policy makers, the draft regulation offers a case study in how national AI roadmaps are being structured, with explicit links to GDP targets and sector-specific use cases. The AI Learning Path for Policy Makers addresses the exact gap analysts identified: the need for structured governance knowledge that moves beyond rhetoric to execution. IT professionals working on public-sector projects should watch whether the sovereign AI fund materialises, as it could reshape procurement and partnership models in the region.
Your membership also unlocks:
