Indonesia targets Rp 100 trillion savings with AI-powered social aid distribution

Government Plans to Save Rp 100 Trillion Using AI for Social Aid Distribution

The Indonesian government is set to use artificial intelligence (AI) to improve the distribution of social aid, aiming to save up to Rp 100 trillion (around US$6.2 billion). This initiative focuses on using facial recognition technology to verify the eligibility of aid recipients based on existing government data.

National Economic Council (DEN) head Luhut Pandjaitan explained that the system will reduce fraud and inefficiencies commonly found in state subsidy programs. President Prabowo Subianto supports the plan and has pushed for the AI-based distribution system to be implemented as early as August.

How the AI System Will Work

• Facial recognition technology will be used to confirm the identity of aid recipients.
• Verification will be based on government-held data to ensure only eligible individuals receive aid.
• This digital approach aims to cut down on errors and fraudulent claims.

Luhut highlighted that this digitalization effort could lead to substantial savings and create a more transparent and efficient social aid process.

Broader AI Adoption to Boost Economic Growth

This social aid initiative is part of a larger government push to integrate digital technologies into the economy. Luhut cited projections showing that AI and other technologies could add $2.8 trillion to Indonesia’s economy by 2040. This adoption could also increase the country’s annual GDP growth by an average of 0.55 percentage points.

Government employees involved in social welfare and subsidy programs should watch for upcoming developments and training opportunities related to AI implementation.

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