The Indonesian Chamber of Commerce and Industry (KADIN) highlighted the necessity of leveraging artificial intelligence as a means to bolster the small and medium enterprises (SMEs) sector, which is considered the backbone of the Indonesian economy. This was stated by the chamber's president, Anindya Bakrie, in Jakarta on Tuesday, where he pointed out that the use of artificial intelligence should be viewed as a strategic opportunity to enhance economic growth and create job opportunities.
Bakrie explained that Indonesia needs to achieve an economic growth rate ranging between 5-6%, which requires the creation of millions of job opportunities. With the increasing number of university graduates, there is an urgent need to effectively absorb these numbers into the labor market.
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Bakrie noted that there are two options to consider this challenge: either view it as an obstacle or see it as an opportunity. He emphasized the importance of focusing on applications related to local needs when developing artificial intelligence in Indonesia. Despite the availability of many global technologies and software, they must be adapted to fit the local characteristics and challenges faced by the country.
He also stressed that the success of implementing artificial intelligence largely depends on the participation of small and medium enterprises, as approximately 97% of the workforce in Indonesia comes from this sector. He stated, "Artificial intelligence will only succeed to the extent that we can motivate our friends in SMEs."
Background & Context
Small and medium enterprises are a vital part of the Indonesian economy, playing a key role in providing job opportunities and fostering economic growth. With the increasing global economic challenges, it has become essential for these businesses to adopt modern technologies such as artificial intelligence to improve their efficiency and enhance their competitiveness.
It is noteworthy that investments in Indonesia have seen significant growth, with total investments in the first quarter of 2026 reaching approximately 498.8 trillion rupiah. However, most of these investments come from small projects, averaging around 1.5 billion rupiah per project.
Impact & Consequences
Current trends indicate that service-based sectors, such as finance, healthcare, and education, have great potential to be affected and developed through the adoption of artificial intelligence. Bakrie believes that the focus should be on these sectors, as they are most susceptible to change but also the most capable of innovation.
Enhancing the use of artificial intelligence in these sectors can lead to improved services and increased efficiency, contributing to overall economic growth.
Regional Significance
Indonesia's experience in utilizing artificial intelligence to develop small and medium enterprises serves as a model that Arab countries can benefit from. Many Arab nations face similar challenges in promoting economic growth and creating job opportunities.
Arab countries can leverage this experience by encouraging innovation in small and medium sectors and providing the necessary support to adopt modern technologies.