Why Indonesia is poised to become the next AI start-up hub

Knowledge exchanges are crucial to ensuring continued growth, along with an emphasis on creating Indonesian scientists

China is also facilitating education growth in Indonesia, offering numerous scholarships for scientific research and collaboration

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Indonesian President Joko Widodo inspecting coronavirus vaccine trials and production facilities during his visit to Bio Farma in Bandung, Indonesia, August 11, 2020. Photo: EPA-EFE

Hugh Harsono

Hugh Harsono writes regularly for multiple publications about cyberspace, economics, foreign affairs and technology.

Published: 5:45am, 25 Aug 2020Updated: 6:35am, 25 Aug 2020

Indonesia’s start-up economy is booming, underpinned by factors such as a relatively young median age of 29, a mobile-first approach to the internet and a booming e-commerce ecosystem, with Indonesia placing as the eleventh largest market for e-commerce in 2019 with a market size of US$19 billion.

Indonesian start-ups have scaled globally over the last two decades, counting among them super-app Go-jek, e-commerce focused Tokopedia, and education-specific Ruangguru.

As Indonesia moves forward, its workforce must become more technically focused, and Indonesians must facilitate a transition from a resource-based economy to a knowledge-based one. With this being said, AI-focused start-ups must consider Indonesia for growth, particularly as the country expands its start-up ecosystem.

Human capital development must be prioritised by both public and private organisations, particularly as Indonesian companies emerge as a force to be reckoned with in the global start-up economy.