Precision, Platform and Purpose: Digitalisation & AI for Indonesia’s Next Growth Chapter

As Indonesia charts its trajectory toward becoming a top-tier digital economy by 2045, the narrative must shift from “scale” alone to precision through technology, especially digitalisation and artificial intelligence (AI).

The double imperative is clear: (1) embed digitalisation across MSMEs, financial services, supply chains and public infrastructure, and (2) leverage AI to make our economy smarter, more agile and more value-added.

The Opportunity

With over 280 million people, internet‐penetration approaching ~79% in 2024, and more than 180 million smartphone users, Indonesia possesses a large and dynamic digital base. 

According to market-intelligence, Indonesia’s digital economy was projected to reach US$ 146 billion by 2025. 

The AI market alone is estimated at about US$ 2.4 billion in 2025 and, if current growth persists, could exceed US$ 10 billion by 2030.  

These numbers highlight a transformational moment: if we get the digitalisation + AI architecture right, Indonesia can leap forward in productivity, inclusion and innovation.

Digital Payments & QRIS: A Foundational Platform

One of the lowest hanging fruits, and already visible, is the standardisation of digital payments through QRIS.

• The Bank Indonesia (BI) launched QRIS on 17 August 2019 and made it mandatory from end-2019. 
• By early 2025, more than 56 million users and approximately 38 million merchants had adopted QRIS, many of them MSMEs.  
• In July 2023 BI reported ~38.24 million QRIS users; 72 % of them (≈27.5 million) were merchants, most MSMEs; 77 % of transactions were below Rp100,000. 
• Transaction volumes surged by ~175% year-on-year in 2024. 

What does this tell us?

The payment layer has been built. We now have a nationwide interoperable infrastructure: any consumer app, any merchant QR code under one standard. This enables both scale and precision. The MSME inclusion is particularly significant because digital payments give visibility, data and connectivity to the “long tail” economy that often remained informal.

AI and Digitalisation: The Next Frontier

Yet digital payments alone are not enough. To compete globally and elevate value-chains nationally, Indonesia must move from adoption to application of AI and digital technologies across sectors.

Here is where the readiness and the gap both matter:

Readiness:

• Indonesia is ahead among some peers: one source says Indonesia has the world’s second highest number of AI tool users after India.  
• Major global players are investing: for example, Microsoft plans US$1.7 billion investment in AI and cloud infrastructure in Indonesia (training, data centres, developer ecosystem). 
• Gaps:
• According to the 2024 Global AI Index, Indonesia ranks 49th out of 83 countries; the Government AI Readiness Index places Indonesia at 38th out of 181. 
• Only ~13% of business players are using AI at a “advanced level”; though ~80% have integrated AI in some form. 
• Infrastructure, regulatory frameworks (data protection, ethics) and uneven talent across regions remain constraints. 

My Proposition: “Technology-Enabled Precision Growth”

As Vice Chairman in domains of technology & digital transformation, and from my community-and-MSME empowerment lens, I propose the following strategic priorities for Indonesia’s policy and investment agenda:

1. Scale the digital payments & data foundation

The QRIS system must be reinforced not only as a payment tool but as a data-platform. Each transaction yields data: consumer behaviour, merchant profiles, supply chain flows. That data, ethically handled and protected, becomes the raw material for AI-driven insights.

Encourage MSMEs to move beyond accepting QR codes to using analytics dashboards, inventory forecasting tied to transaction data, dynamic pricing or loyalty models.

2. Embed AI into sectors, not just labs

From agriculture (precision farming, yield prediction), logistics (route optimisation, cold chain monitoring), manufacturing (predictive maintenance), to finance (credit underwriting, risk modelling), the focus must shift from “pilot” to “production”. Government incentives, tax credits or matching funds should reward deployment at scale.

Leverage the payment data backbone (QRIS + bank/digital-wallet logs) to fuel AI-models: e.g., MSME credit scoring, demand forecasting, micro-insurance.

3. Strengthen talent, infrastructure, governance

We must boost Indonesia’s AI talent pipeline (coding, data science, domain knowledge), invest in regional digital infrastructure (broadband, edge-cloud), and establish robust frameworks for data privacy, ethics, algorithmic transparency. Without these, digitalisation will deepen only in Java-centred hubs and widen regional divides.

4. Prioritise MSMEs & informal economy inclusion

MSMEs are the backbone of Indonesia’s economy. Digitalisation must be inclusive. Through QRIS we already onboard many. Next step: provide MSMEs with plug-and-play AI tools (chatbots, inventory-forecasting, customer-segmentation) bundled into their digital banking or wallet apps. Encourage MSME clusters (e.g., rural cooperatives) to act as “digital hubs” distributing technology.

5. Promote cross-border digital and payment interoperability

Indonesia has begun integrating QRIS cross-border (with ASEAN nations) to support tourism, trade, diaspora flows. This should be extended to include AI-enabled trade logistics, real-time customs clearance, digital-twin of supply-chains, etc. In the age of globalisation and de-risking, Indonesia can position itself as a digital node connecting Asia.

Why This Matters for Indonesia’s Strategic Position

In a world where “heft” (size of balance sheet, volume of assets) no longer guarantees advantage, precision through technology becomes the differentiator. The report by McKinsey & Company (Why Precision, Not Heft Defines the Future of Banking) is relevant not just for banks, but for national economies: the logic applies to nations and sectors.

By investing in digital platforms (payments, data), and layering AI intelligence, Indonesia can leapfrog in productivity, inclusion and sustainability. Rather than relying solely on raw commodity volumes or low-cost labour, we can shift toward a higher value model, digital, smart and resilient.

Concluding Call

For policymakers, industry leaders and the tech-ecosystem, the time is now. Let’s treat QRIS not just as a payment tool, but as the gateway to digitalisation. Let’s treat AI not as a novelty, but as the engine of precision and value-creation. And let’s lift MSMEs, rural areas and informal actors into that digital realm, not leaving them behind.

If we seize this moment, Indonesia won’t just join the digital era, it will help define it.