Jakarta. Indonesia is currently drafting a regulation on the use of artificial intelligence or AI as the new technology’s popularity continues to grow in the country. 

Starting from the San Francisco-based OpenAI to the low-cost Chinese DeepSeek, the world is witnessing an AI boom. Indonesia is no exception to the global AI craze. Many Indonesians are now relying on AI to answer their endless questions and improve efficiency in their work. As more people turn to AI, Indonesia is currently working on a regulation to govern its use. Communications Minister Meutya Hafid recently told reporters that the regulation remained a work in progress to this day. 

“We have already issued a circular letter [on AI], and we are now working on the regulation. So just wait,” Meutya said on the margins of the 2025 Beritasatu Economic Outlook forum in Jakarta.

While Meutya at the time did not give a specific time frame for the AI regulation, the former newscaster said a few weeks ago that they would likely finish it within three months. In late 2023, then-Communications Minister Budi Arie Setiadi inked a circular letter that laid out the general guidelines for ethical AI use. The circular covers the need to foster inclusivity and transparency, to name a few. It states that AI providers must make sure that their product provides credible information.  Meutya’s deputy Nezar Patria had previously said that the government wanted to involve everyone -- including industry players and the general public -- when drafting the upcoming AI regulation. This document aims to enable a more responsible use of AI across various sectors, including education, health, and financial services.

Earlier that day, Meutya brought the forum’s attention to the ongoing tech arms race that is happening between the two rivaling major economies: the US and China. Alexandr Wang -- the founder of the San Francisco-based tech firm Scale AI -- had even written an open letter to the newly sworn-in US President Donald Trump that “America must win the AI war” while listing what Washington could do to secure victory. 

“Wars have gone beyond actual arms, but they now revolve around digital technology. This shows how every country, including Indonesia, needs to develop AI and digital economy,” Meutya said.

Amidst the brewing US-China tech war, Meutya said that Indonesia, too, held the potential to become an AI powerhouse in the ASEAN region. The 2024 e-Conomy SEA report shows that Indonesia’s most modern city Jakarta is in the lead on AI interest and demand, as seen in the population’s internet searches. The same goes for the Riau Islands and East Kalimantan, which is home to Indonesia’s future capital Nusantara. The same report also revealed that Indonesia’s digital economy had topped $90 billion in gross merchandise value (GMV) in 2024. It will likely jump to up to $360 billion by 2030. 

“Indonesians are significantly growing interested in AI. The statistics show that Indonesia is not only adopting this new technology but holds the potential to lead the AI innovations in Southeast Asia,” Meutya said.