Artificial intelligence (AI) is rapidly moving from a niche tool to a factor that shapes how economies grow and how people work. For the Indonesian Business Council (IBC), the global AI boom is not only about innovation and technology valuations abroad, but also about how it will affect Indonesia’s economic growth and labour market. In many countries, warnings have emerged that AI disruption may suppress demand for labour, especially among young graduates. At the same time, other analyses suggest that AI is more about changing the nature of jobs and the skills required than simply “erasing” vacancies. This global debate serves as a mirror for Indonesia as it prepares its medium-term growth strategy.
Domestically, similar concerns are emerging. Public discussion about workers being replaced by robots or automated systems is growing, particularly for jobs that are easily digitized. On the other hand, official data from Badan Pusat Statistik (BPS) show that the open unemployment rate remains around 4.85%, with average wages for workers at roughly Rp3.33 million per month. These figures indicate that Indonesia’s labor market is still absorbing workers. Still, there is considerable room for improvement in job quality and productivity, especially if automation and AI are adopted more widely.
IBC describes AI as a double-edged sword for the economy. On the one hand, this technology can drive efficiency, reduce costs, and open up new business models in manufacturing, services, logistics, finance, and other sectors. On the other hand, leveraging AI for immediate cost reduction presents the risk of displacing certain employees from suitable employment or confining them to a poorly compensated position. The challenge is not to stop AI, but to ensure that the resulting productivity gains are translated into growth that still creates employment and improves job quality in Indonesia.
On the policy side, Indonesia has developed several initial frameworks related to AI and digital transformation, including Strategi Nasional Kecerdasan Artifisial Indonesia (2020–2045) and Peta Jalan Indonesia Digital (2021–2024), which serve as references for the government and businesses across various sectors. In the labour domain, social protection instruments and skills-upgrading programmes, including unemployment benefits and a range of vocational schemes, can provide a cushion for workers affected by these shifts. IBC sees these frameworks as necessary foundations, whose effectiveness will depend heavily on consistent implementation and the capacity to deliver retraining on the ground.
Seen from this perspective, the global AI boom is, above all, an economic and labor market issue, not just a technological trend. AI is almost sure to enter companies’ value chains. What will determine the outcome is how the business community links technology adoption with skills upgrading, process redesign, and the creation of higher value added within the country. With closer dialogue among businesses, the government, and the education ecosystem, the global AI boom can become an opportunity to strengthen competitiveness while improving job quality in Indonesia, rather than simply a new source of anxiety for workers.