AI in Indonesian Public Services: A Case Study for Global South Nations

The adoption of Artificial Intelligence (AI) in public services is a global priority, with countries progressing at different speeds.

Authors: Tuhu Nugraha and Irwan Hermawan*

The adoption of Artificial Intelligence (AI) in public services is a global priority, with countries progressing at different speeds. Indonesia has made efforts to enhance public service efficiency, engagement, and transparency through AI, but lags behind advanced economies like Singapore, South Korea, and Estonia due to infrastructure, human resource, and data management challenges.

For example, Singapore’s AI chatbot handles over 3 million public inquiries annually, while South Korea uses AI to reduce traffic congestion, and Estonia’s digital identity system enhances public trust. However, Indonesia faces broadband access issues—with only 15.03% penetration in 2023—and a significant AI skills gap, ranking 60th globally in ICT readiness. Limited internet access and a shortage of AI talent hinder widespread AI adoption, particularly in rural areas and sectors requiring technical expertise.

These challenges raise a critical question: how well is Indonesia positioned in the global race to adopt AI in governance, and what lessons can other developing nations draw from advanced countries?

Efficiency: The First Frontier in AI Adoption
The Indonesian government should prioritize Efficient Public Services as the foundation for AI implementation. Automation through AI presents a significant opportunity to reduce bureaucracy, accelerate service delivery, and facilitate smoother interactions between citizens and public institutions. AI-driven chatbots, for example, can handle routine inquiries, allowing civil servants to focus on more complex issues. Internally, AI could streamline government processes by offering real-time data analysis to inform decision-making. However, to achieve these, the government must take data collection seriously. Currently, data across regions and ministries in Indonesia are often inconsistent on collection processes, parameters, and technologies used. To unlock the full potential of AI, the country needs standardized data protocols to synchronize data nationwide.

Moreover, it’s crucial to secure stakeholder buy-in that AI is intended to assist and enhance their work, rather than replace them. Shifting this mindset is necessary to reduce resistance and foster collaboration in AI adoption. Finally, to maximize AI’s benefits, the government should improve stakeholders’ data-driven decision-making skills. Building competencies in data literacy will empower decision-makers to utilize AI more effectively, resulting in more informed and strategic policy decisions.

For instance, several ministries in Indonesia are already adopting AI technologies:

  • The Ministry of Communication and Information (Kominfo) is using AI to detect fake news or hoaxes in the digital space, employing Natural Language Processing (NLP) and machine learning technologies.
  • The Directorate General of Taxation (DJP) under the Ministry of Finance has developed an AI-powered chatbot to help taxpayers access information and services more easily .
  • The Ministry of Health has integrated AI into healthcare technology in radiology and pathology. This technology assists in analyzing X-rays, CT scans, and other anatomical pathology services across several hospitals.
  • The National Disaster Management Agency (BNPB) has developed BencanaBot, a humanitarian chatbot that is integrated with platforms like WhatsApp, Telegram, Twitter, and Facebook. BencanaBot helps communities in disaster-affected areas report real-time disaster events .

These initiatives reflect the growing use of AI in Indonesian public services, but broader adoption requires harmonized data management and enhanced stakeholder engagement to fully leverage AI’s transformative potential.

Transparency: Building Trust and Accountability
AI can also be transformative for Transparency, especially in Improved Public Engagement and Open Data Initiatives. For Indonesia, where public trust in government can often be fragile, AI-powered transparency initiatives could be a critical step in rebuilding that confidence. AI tools could be used to monitor financial transactions, track government projects, and make real-time data available to the public. However, the crucial point here is that transparency must be handled with care. Open data initiatives must ensure that the data released is both accurate and meaningful, preventing potential misuse or misunderstanding. Leveraging AI to ensure data accessibility and clarity would help bridge the gap between government and citizens, fostering a more engaged and informed public.

Inclusivity: Ensuring No One is Left Behind
Artificial Intelligence (AI) holds tremendous potential for enhancing inclusivity in public policymaking by enabling data-driven decision-making and promoting ethical AI implementation. Indonesia has a significant opportunity to leverage AI to collect and analyze data from its diverse regions, ensuring that policies address the unique needs of all citizens, including those in remote and underdeveloped areas. However, ethical considerations must be at the core of this process. The government needs to implement robust frameworks that prevent bias, safeguard data privacy, and protect marginalized communities. By aligning AI development with international ethical standards, Indonesia can ensure that the benefits of AI are widely distributed while minimizing associated risks.

The Ministry of Communication and Information (Kominfo) has demonstrated its commitment to responsible AI governance by adopting frameworks from UNESCO and ASEAN. In May 2024, Kominfo launched the Artificial Intelligence Readiness Assessment Methodology (RAM AI) with support from UNESCO. This initiative is designed to help Indonesia develop a comprehensive AI governance framework in line with international standards. Deputy Minister Nezar Patria highlighted that RAM AI is based on global principles such as UNESCO’s Ethical AI Principles, the OECD AI Principles, and ASEAN’s guidelines on AI governance and ethics. Additionally, Indonesia has adopted the European Union’s Digital Markets Act (DMA) and Digital Services Act (DSA) as references in developing digital platform governance, which is closely linked to AI regulation. These initiatives underline the Indonesian government’s commitment to ethical and responsible AI development aligned with international best practices.

While AI holds the promise to transform governance, it is essential to recognize and mitigate its potential downsides. Algorithmic bias, for example, could reinforce existing inequalities, and automation might lead to job displacement. Therefore, establishing and adhering to robust ethical frameworks is crucial to ensuring that AI is used responsibly, equitably, and in a way that benefits all citizens.

Focusing on Low-Hanging Fruit for Quick Wins
For Indonesia, the most immediate gains in AI adoption can come from simpler applications that don’t require massive infrastructure overhauls. Automating basic public services using AI chatbots, implementing AI-driven data management for transparency, and employing machine learning in localized decision-making processes, can be implemented easily. These initiatives would yield quick wins in improving efficiency and public engagement, without requiring extensive financial or structural investment. However, as noted earlier, data standardization across various regions and ministries is crucial. Without this, the true potential of AI cannot be realized.

Moreover, stakeholders must be reassured that AI will not replace their roles but complement their tasks by automating repetitive work and providing valuable insights. Fostering data-driven competencies among these stakeholders is equally important. Training programs that aim to enhance data literacy and analytical skills will be critical to ensure that AI is used effectively, helping stakeholders make more informed decisions.

Addressing the Challenges Faced by Developing Nations
Indonesia’s experience in AI adoption mirrors the challenges of many developing nations. While goals such as efficiency, transparency, and inclusivity are universal, the obstacles vary. Infrastructure gaps, shortages of skilled human resources, and limited access to large datasets are significant hurdles to overcome. Other developing countries may face even greater challenges, including political instability, insufficient regulatory frameworks, and inadequate technology investment. To successfully implement AI, these nations must address these foundational issues through targeted investments in infrastructure and capacity building.

Despite the challenges, several developing countries have demonstrated innovative AI applications that can inspire Indonesia and others. For example, India’s AI-powered platform, “DISHA,” provides personalized agricultural advice to farmers, improving crop yields and incomes. In Rwanda, AI-powered drones deliver medical supplies to remote areas, increasing access to healthcare. These examples highlight the potential of AI to address pressing challenges and drive development, even in resource-constrained environments.

Conclusion: A Path Forward for AI in Government
While AI holds tremendous potential for transforming Indonesia’s government sectors, its success hinges on how effectively the country addresses key challenges, particularly in terms of transparency and inclusivity. To ensure a successful AI adoption strategy, the government should start with small-scale initiatives, focusing on low-hanging fruit that can deliver immediate benefits. Building trust among citizens and stakeholders, while establishing strong ethical frameworks, should be integral to this approach. A critical aspect of this effort is the standardization of data collection across ministries and regions to create a unified, efficient system. Additionally, gaining stakeholder buy-in is essential to address concerns about potential job displacement, ensuring AI is seen as an enhancement rather than a threat. Moreover, enhancing data-driven competencies among key decision-makers will empower them to leverage AI effectively.

Indonesia’s experience offers valuable insights for other developing nations: the success of AI adoption lies not just in the technology itself, but in creating a supportive governance ecosystem that promotes sustainable and scalable long-term development. The key factor of AI adoption acceleration across developing nations is collaboration between governments, academia, and the private sector. This multi-stakeholder partnership can drive innovation, provide technical expertise, and ensure that AI implementation aligns with societal and economic goals. Collaboration can accelerate their AI journey while mitigating risks and ensuring inclusive growth.

In Collaboration with:

Irwan Hermawan. He is a Certified Public Relations (CPR) and multifaceted marketing communications professional who excels at the intersection of public service, industry innovation, and strategic marketing communications with over 15 years of experience in the field.

In his role as a Government Public Relations, he bridges the gap between the government and the public, fostering transparency and trust through effective communication strategies. As the Head of Research and Development for APPRI, he drives innovation and sets new standards in public relations, guiding the industry toward future-focused practices. Lastly, as the founder of Markathing Indonesia and co-founder of Govcom Consulting, he leads creative campaigns through transmedia storytelling that amplifies brand narratives and engages diverse audiences.

Tuhu Nugraha
Tuhu Nugraha
Digital Business & Metaverse Expert Principal of Indonesia Applied Economy & Regulatory Network (IADERN)