While Indonesia ranks among the top countries adopting artificial intelligence (AI), a new report has highlighted the lack of talent that threatens to derail its national progress.
Deputy Communications and Digital Minister Nezar Patria disclosed the concerns during the launch of the Indonesian AI Center of Excellence, noting that the lack of depth in the talent pool is stifling innovation in the country, limiting Indonesia from realizing its potential.
Currently, employable adults with in-demand digital skills in the Southeast Asian country are around three million, a far cry from the 12 million workforce required to achieve Indonesia’s digitalization goals. Indonesia is eyeing a complete transformation of its economy by the end of the decade with emerging technologies.
“One of the most critical challenges is the AI talent gap, especially in fulfilling the talent demand and ensuring skills are competitive enough,” said Patria.
While the country has made significant strides with learning initiatives for blockchain technology, AI training initiatives are below par. OpenAI Chief Economist Aaron Chatterji noted that despite ranking high among ChatGPT users, application programming interface (API) applications by local developers are low.
“In terms of developers using our APIs, Indonesia is among the top 30 of all markets,” remarks Chatterji. “So, there’s definitely room to grow from the developer standpoint.”
Experts rationalize a raft of reasons for Indonesia’s lagging AI talent, with a cross-section heaping blame on venture capital (VC) firms. Kata.ai CEO Irzan Raditya disclosed that VC firms are demonstrating less appetite for localized AI investment, with the disparity in funding figures glaring between Indonesia and the United States.
Apart from funding, local AI startup developers do not have access to technical infrastructure and relevant data sets to smooth the learning curve. Others are blaming the government for failing to provide adequate AI learning and innovation labs for eager Indonesians.
An attempt to bolster local talent pool
Singapore rallies for increased AI collaboration
Meanwhile, as experts converged in Singapore for the 2025 PECC Conference, artificial intelligence (AI) themes hogged the spotlight with panelists pushing for greater regional collaboration.
In her opening address, Denise Wong, Assistant Chief Executive at the Infocomm Media Development Authority (IMDA), remarked that Southeast Asian nations have to embrace “collective action” to rein in AI for the public good. Her address conceded that AI models have ushered in a raft of economic benefits for the region.
Wong pointed to improvements in logistics through optimized route planning and process efficiencies in hospitals. AI in workplaces is turbocharging productivity for enterprises, but Wong warns that without proper guardrails, the cons will outweigh the disadvantages.
To rein in AI for public good, Wong urged Southeast Asian regulators to avoid the wholesale adoption of foreign AI models. Rather, the IMDA executive is pushing for AI to be tailored to the peculiarities of Southeast Asia, capturing its laws and cultural nuances.
Wong cites Singapore’s SEA-LION, a large language model (LLM) trained in 11 Southeast Asian languages, as a step in the right direction. Given the practicality of the model, Wong notes that several countries in the region are adopting the localized LLMs over foreign models.
Apart from localizing AI models, the IMDA executive disclosed that increased collaboration between regional neighbors will improve AI adoption. She urged attendees to take a cue from Singapore’s handling of AI in terms of hefty government spending and a proper regulatory framework.
“These challenges are complex and interconnected,” said Wong. “They demand more than individual solutions. They require collective understanding and action.”
Wong highlights the Singapore Consensus, a document laying the foundation for safety standards to be adhered to by local service providers. Singapore has its sights on becoming Southeast Asia’s AI hub with a $1 billion investment in innovation for emerging technologies.
Southeast Asia forges ahead despite headwinds
Amid the lack of cross-border data sharing solutions, Southeast Asian countries are still recording significant strides in AI adoption. In 2024, aware of the risks associated with the technology, members of the Association of Southeast Asian Nations (ASEAN) teamed up to pursue safe AI development and innovation.
Vietnam has elevated AI to the top of its national priorities, while a United Nations report confirms rising adoption rates in the Philippines, while Malaysia is recording real-world AI applications, deploying the technology to fight graft.
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