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Kearney: Indonesia Has Strong AI Potential but Needs More Education

Faisal Maliki Baskoro
April 19, 2025 | 11:42 am
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Shigeru Sekinada, Region Chair, Asia Pacific at global consultancy Kearney. (Handout)
Shigeru Sekinada, Region Chair, Asia Pacific at global consultancy Kearney. (Handout)

Jakarta. Asia Pacific companies are racing to unlock the full potential of artificial intelligence (AI), but many are still in the early stages of understanding how to integrate the technology into core operations, according to Shigeru Sekinada, Region Chair, Asia Pacific at global consultancy Kearney.

In an interview, Sekinada said while AI --especially generative AI-- has become a hot topic among companies in the region, its practical application remains uneven. “Customer service and digital marketing are the most common use cases so far,” he told The Jakarta Globe recently. “But most companies are still exploring how to use generative AI effectively.”

One major concern with AI adoption is its impact on jobs. Sekinada acknowledged that the fear of AI replacing humans is widespread, but said that the technology should be viewed as a collaborative tool rather than a threat.

“AI can support humans by gathering and structuring information. It can reduce stress in high-pressure roles, like customer support in insurance claims,” he said, referencing a Japanese firm that deployed AI to ease employee workloads.

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Sekinada compared the rise of AI to Google's emergence in the early 2000s, when many believed consulting would become obsolete because people could find information online. “But instead, the consulting industry grew. Humans adapt, and they find new ways to add value even as technology evolves,” he said.

Indonesia’s AI Outlook: Growth Beyond Cost Efficiency
Sekinada believes Indonesia holds strong potential to become an AI hub in Southeast Asia, thanks to a growing recognition among government officials and executives of the need to invest in AI education and infrastructure.

“Indonesia could develop its own specialized AI to improve productivity and workplace well-being. But this requires strengthening education at the high school and university levels,” he said.

He also added that AI should be seen as a tool not only for cost reduction but also for fueling growth. “Indonesia’s GDP is projected to grow around 5 percent, but that’s not enough. If the country wants to grow its middle class and ensure sustainable development, it must use AI for innovation and business growth.”

President Prabowo Subianto aims to push the country’s gross domestic product (GDP) growth to 8 percent before his term ends in 2029. Indonesia's recent annual growth rate is 5 percent. 

Looking ahead, Sekinada said cost optimization will be the initial driver of AI adoption across Asia Pacific. But the next frontier lies in using AI to drive growth.

“Executives are looking for new processes to improve profitability. But in the next phase, they’ll focus on how AI can help grow the business, not just cut costs,” he said.

As large firms like NVIDIA, OpenAI, and Google dominate the AI landscape, Sekinada advised smaller firms in Indonesia to adopt a portfolio approach to remain competitive.

“Relying on a single AI provider is risky. SMEs should diversify—using US, Chinese, Japanese, and local AI technologies. This can help avoid price hikes and ensures long-term sustainability,” he said.

While challenges remain, Sekinada remains optimistic about AI's role in transforming businesses across Asia Pacific. “We’re still early in the journey,” he said. “But the companies that figure out how to blend human capability with AI will have the real edge.”

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