Indonesia has one of the lowest tax-to-GDP ratios in the Asia-Pacific region, and unlike in many economies, this has been declining in recent years.
AI can help take over or reduce the time taken to complete administrative tasks. For example, one study13 found that using a generative AI tool could reduce the time taken to complete a writing task by 40%, while increasing quality by 18%.
Rural areas, in particular, in Indonesia have struggled with low doctor-to-patient and teacher-to-student ratios.
AI can help diagnose and flag patients who need to see a doctor, and help pupils wherever they live with individualised learning.
At the same time, the country’s public governance has struggled with bureaucratic complexity and burdensome regulation, with the current administration promising to do more to increase transparency.
AI can automatically monitor, flag irregularities and facilitate communication between different parts of the public and private sectors. Over the next five years, government agencies and state-owned enterprises in Indonesia could benefit from a cumulative Rp 26 trillion (US$1.7 billion) in efficiency gains and cost savings through their adoption of enterprise-grade AI platforms and tools.
Indonesian public sector workers are overwhelmingly positive about the role AI will play on public services. 9 in 10 Indonesian public sector workers told us they think the expanded use of AI will have a positive impact on their country, and that AI tools will be important to the public sector over the next decade.
of public sector workers think AI will help reduce time spent filling out basic paperwork.
of public sector workers think that AI will complement existing roles, allowing employees to be redeployed to other tasks or work fewer hours.
of public sector workers would be interested in training to help them use AI tools.
Between 2000 and 2020, life expectancy in Indonesia rose from 66 to 72 years, while the under-five mortality rate more than halved. Over 90% of the population are now covered by National Health Insurance, and the share of out-of-pocket expenditure has fallen rapidly.
However, significant problems remain from the country’s combined challenges of high rates of infectious diseases alongside rising rates of chronic diseases, and continued health worker shortages in rural areas. Doctor-to-patient ratios remain significantly below WHO recommended levels. Over 70% of cancer cases are only identified at a later stage, contributing to poorer survival rates.
AI has many potential use cases in healthcare:
AI-powered chatbots can ask basic questions to assess symptoms and triage patients who need to see a doctor urgently. This can be particularly helpful in rural areas where no existing doctors are on sites. 67% of Indonesians we surveyed supported the use of AI to help detect and diagnose illnesses in patients.
AI can help interpret imaging and radiology scans, or analyse the results back from tests. In Indonesia, those tools have been piloted to help with the detection of chest abnormalities, while Google Research is exploring globally the use of AI to help identify diseases including tuberculosis, lung cancer and anemia.
For example, in Indonesia, we estimate that AI could help save 28,000 lives from earlier detection of chronic conditions such as hypertension, diabetes mellitus or hyperlipidaemia.
For example, in Indonesia, ExplainDengue uses AI to help integrate diverse datasets and better predict where dengue fever outbreaks may take place.
The Ministry of Health of the Republic of Indonesia is expanding its collaboration with Google Cloud to support the development of Generative AI innovations specific to healthcare, in line with the goals set out in the Indonesian government’s blueprint for digital health transformation and the Indonesia Digital Vision 2045 initiative.
Since the collaboration between the two organisations began in 2022, Google Cloud has created a safe and secure environment to test enterprise-grade and medically tailored AI gene innovations, allowing them to be tailored to meet the healthcare needs of the Indonesian people.
This latest collaboration is part of the Ministry of Health’s goal to improve access, experience, and outcomes of healthcare services for every individual in Indonesia, and complements ongoing efforts with Google Cloud to improve processes in the healthcare sector in Indonesia.
Over the last twenty years, Indonesia has made significant advances in expanding the coverage of its education system, with nearly all children now attending primary and secondary education. At the same time, however, the country has struggled to improve teaching quality at the same rate, with the country’s educational performance only in the bottom 10% on internationally comparable PISA tests.14 In regional areas, in particular, there can be challenges with coverage or teacher absenteeism, with 10% of teachers sometimes not present at schools.
While AI cannot fully replace a human teacher, it has significant potential to help support both teachers and students:
For teachers, AI could help support with marking, lesson planning and other administrative tasks. That frees up teachers to spend more time directly with their students. In our modelling, we estimate that AI could help save time in around 20% of teaching tasks.
For students, AI driven learning platforms and tutors could help provide personalised teaching and around the clock instruction. This could enable 30 million people in Indonesia who we estimate do not currently have access to a full secondary education to boost their skills. Early studies have already shown these can be effective in real word settings – with one pilot in Ghana finding that an AI-powered maths tutor was able to provide the equivalent of an extra year of education for Rp 83,200 (US$5) per student. In Indonesia, similar solutions are already being experimented with by local companies such as Sekolah.mu.
In October 2023, Indonesia became the first country to launch Gemini Academy, Google’s training program for teachers designed to build AI literacy, promote safe and responsible use of AI and provide hands-on practice. Over the past year, the program has trained 186,000 teachers across 35 provinces, equipping them with AI skills to enhance learning experiences.
Tarwiyatul Laila, a teacher from Pamekasan 1 Senior High School in East Java, shared how AI enhanced creativity in the classroom, stating:
Meanwhile, Junita Afni, a teacher in North Sumatra, highlighted AI’s impact on student engagement:
With strong teacher adoption and tangible classroom benefits, Gemini Academy is paving the way for AI-powered education in Indonesia, empowering educators to innovate and inspire students.