Authors: Tuhu Nugraha and Rosaria Mita Amalia
Agentic AI—autonomous systems capable of real-time adaptation and multi-step problem-solving—is poised to redefine industries worldwide. In Indonesia and across the Global South, adopting such advanced AI systems presents unique opportunities and challenges, particularly in preparing the labor market to harness these technologies effectively. To ensure inclusive and sustainable development, policymakers, academia, and industry must prioritize reskilling initiatives and competency-building, particularly for university graduates and the broader workforce.
The Emerging Role of Agentic AI in the Labor Market
Agentic AI holds transformative potential, from automating complex workflows to enhancing customer experiences and streamlining operations. As organizations increasingly deploy these systems, the demand for AI-literate professionals will grow exponentially. According to Gartner (2024), 33% of enterprise software applications will integrate agentic AI by 2028, signaling a significant shift in job roles and required skills. In Indonesia, where the government is actively driving digital transformation, ensuring a prepared workforce will be critical for leveraging these advancements effectively.
Why the Global South Matters in Agentic AI Adoption
Agentic AI will fundamentally transform workforce structures across various industries by automating tasks such as demand forecasting, customer service, financial analysis, and logistics planning. This technological shift will reduce reliance on manual labor for routine and repetitive tasks while creating a growing demand for advanced competencies in AI system optimization, data analytics, and interdisciplinary problem-solving. However, without proactive measures, these changes could exacerbate socio-economic inequalities, displace workers in vulnerable sectors, and widen the digital skills gap, particularly in developing nations.
To address these challenges, comprehensive governance frameworks are essential. Indonesia and other Global South nations must balance technological innovation with societal protection. Collaborative efforts through BRICS and other alliances should prioritize reskilling initiatives, knowledge-sharing platforms, and industry standards to mitigate risks while maximizing the benefits of agentic AI adoption. This collaboration must integrate pentahelix stakeholders—government, academia, industry, civil society, and media—to ensure that the solutions are inclusive and sustainable.
The reliance of many Global South nations on consuming rather than producing agentic AI highlights a need for scalable and replicable frameworks. Indonesia can lead in creating models that other Global South nations can adopt, ensuring that technological advancements are accessible and equitable across the region. For instance, India’s AI-driven agricultural programs and Brazil’s healthcare applications show the potential of tailored AI solutions but also reveal disparities in workforce adaptation. By focusing on shared expertise and capacity-building programs, these nations can transition from consumers to contributors in the global AI landscape.
Indonesia, as part of BRICS, has the opportunity to lead by fostering inclusive policies, scalable reskilling programs, and governance frameworks. Its demographic advantage, with a young and tech-savvy workforce, coupled with its strategic position in BRICS, uniquely positions Indonesia to act as a bridge between the Global South and more advanced AI economies. By leveraging these strengths, Indonesia can drive collaborative frameworks that address shared challenges while promoting regional development. By integrating these efforts early, Indonesia can address shared challenges and demonstrate effective models for balancing technological innovation and social stability.
Reskilling and Upskilling: A Priority for Indonesia
Despite its potential, agentic AI adoption faces barriers such as a skills gap in AI and related fields. Indonesia’s young, tech-savvy population, which accounts for approximately 55% of the total labor force being under 40 years old (the Central Bureau of Statistics, Indonesia, 2023), presents a strong foundation for addressing these challenges. However, many of these workers are employed in routine or semi-skilled jobs that are at high risk of automation. Without proactive interventions, agentic AI could exacerbate unemployment and underemployment among young workers.
Integrating AI Education in Universities: Higher education institutions should update curricula to include agentic AI, data science, and ethical considerations. Practical, project-based learning should be prioritized to ensure graduates are job-ready. To encourage universities to adopt these changes, governments could introduce awards recognizing excellence, provide funding grants, and offer tax incentives.
National Reskilling Programs: Policymakers should launch large-scale reskilling initiatives targeting professionals in finance, manufacturing, and public services. These programs must focus on competencies in AI implementation, data management, and interdisciplinary problem-solving. Governments should also enact policies requiring companies to allocate a portion of profits for employee reskilling, as exemplified by Indonesia’s Financial Services Authority (OJK) in the financial sector.
Collaboration with Industry: Partnerships between universities and industries can create specialized training modules tailored to market needs. Encouraging international partnerships with companies from other countries could foster knowledge transfer and adoption of global best practices.
Support for SMEs and Startups: Subsidized workshops and accessible AI toolkits tailored to SME needs can lower adoption barriers. Governments could offer financial incentives, such as AI adoption subsidies, to encourage smaller firms to integrate agentic AI solutions.
Conclusion
Agentic AI represents a pivotal moment for Indonesia and the Global South. By addressing workforce challenges through reskilling, governance frameworks, and inclusive policies, these nations can not only mitigate risks but also position themselves as leaders in the global AI economy. Indonesia, leveraging its BRICS membership, can set a precedent for inclusive and sustainable AI adoption that other Global South nations can emulate.
*Rosaria Mita Amalia, President Indonesia Career Center Network & Head of CDC Univerisitas Padjadjaran (2018-2024)
