AI Transforms Indonesia's Digital Economy Opportunities

Macquarie University/The Lighthouse
Could Indonesia's diaspora be the key to unlocking the potential of the country's digital economy?

Jakarta experiences some of the worst traffic in the world. Drivers in the Indonesian capital can spend up to 83 hours a year stuck in traffic, compared to 47 hours in Sydney.

It's of the reasons many locals depend on delivery service platforms for groceries and takeaway – something businesses including the homegrown Gojek and Singaporean company GrabFood have jumped on.

"When there are challenges, there are also opportunities," says Wishnutama Kusubandio. "And you can use those opportunities to grow the economy."

The former journalist and businessman, who served as Minister of Tourism and Creative Economy under President Joko Widodo, is passionate about the potential of Indonesia's growing digital economy.

Indonesia has more than 210 million internet users and is projected to have a digital economy worth US $340 billion by 2030 – the largest in Southeast Asia.

Wishnutama, a postgraduate student at Macquarie University, is on a mission to encourage students and diaspora communities in Australia to participate and innovate in the sector.

He says the rapid rise of artificial intelligence is creating exciting career opportunities for talented students.

Indonesia forum

The panel spoke and also held a Shark Tank style pitch competition.

"Indonesia has a once-in-a-generation opportunity to define and shape our nation's digital future, but we can't do that without our best and brightest minds."

Macquarie University recently hosted AI: the next chapter, a two-day event exploring the role the tech diaspora can play in Indonesia's evolving landscape. Wishnutama was the event's lead organiser.

"In this digital era, there's so much opportunity for Indonesian students to create jobs, startups and SMEs," he says. "That's why we invited speakers who are already doing that work – to inspire the next generation."

One of the highlights of the event was a Shark Tank style pitch competition. Students from universities around Australia travelled to Macquarie's Wallumattagal campus to present their ideas to a panel of expert judges and investors. The winning idea came from Muhammad Fuad Nasrullah, a Macquarie University Master of Management (Supply Chain) student, who developed AI technology that can be used by sports teams to analyse their opponents' match performance. The student will be supported to travel to Jakarta to further develop their idea.

In her opening remarks, Professor Leonie Tickle, Executive Dean of Macquarie Business School, observed that managing the potential of AI must be done with great care.

"Macquarie is deeply committed to our engagement with Indonesia," she said. "And we hope this event marks the beginning of a deeper conversation about connecting global expertise with local potential and ensuring that the extraordinary promise of AI is realised responsibly and inclusively."

The opportunity to do good with AI is not yet a mainstream narrative in Australia, but it was one of the recurring themes at AI: the next chapter.

Speakers dreamed big: sharing their excitement about how AI could one day make mental health services more accessible for young people living in remote parts of Indonesia or be used warn the authorities about illegal deforestation before it happens.

Indonesia forum questions

Students, alumni, experts and industry attended the forum to share ideas.

"Focusing on AI with a human centre is very important," says Wishnutama. "We need to find the right formula for approaching this AI era in a way that creates jobs, opportunities and makes a difference in people's lives."

His advice for students curious about the digital economy is simple.

"Opportunity is in Indonesia. The research shows it. There are challenges, but that means there also chances to build solutions."

It's this message he's taking on the road, with plans for AI: the next chapter events in China and the US later this year.

"Indonesia's progressive attitude towards the positive potential of AI and ensuring its homegrown talent benefits is aspirational," says Deputy Vice-Chancellor (People and Operations), Professor Eric Knight. "It sets an example for its Asia-Pacific neighbours, including Australia."

"[This event] reinforced the transformative impact of our international students and partnerships, and Macquarie's commitment to a high-quality, globally connected international education sector."

He says the forum showed what a globally connected campus community can make possible, by bringing students, alumni, experts and industry together around one of the big challenges of our time, and showing how AI can become a source of shared opportunity for Indonesia, Australia and the wider region.

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