Indonesia to utilize AI for MSMEs
The Indonesian government is encouraging the use of artificial intelligence (AI) technology for micro, small, and medium enterprises (MSMEs) as an effort to strengthen the supply chain within the industrial ecosystem, Xinhua reports.
"By utilizing AI technology, our MSMEs will be able to analyze market demand more quickly," Loto Srinaita Ginting, expert staff for finance and MSME development from the country's Ministry of State-Owned Enterprises, said at an event in Surabaya, East Java province, on Friday.
She said that AI technology would be capable of paving the way for data integration between buyers and sellers, making business processes more precise and responsive to market dynamics, adding that the technology would also help the MSMEs estimate raw material stock and manage production processes effectively and adaptively.
AI can be a facilitator that can help the MSMEs expand business at the domestic level and enter the industrial chain at the global level, Ginting said.
Indonesia, through its Ministry of Communication and Digital Affairs, is currently pushing digital transformation to maximize performance by utilizing the latest digital technologies. This includes the utilization of AI, big data, and cloud computing.
Earlier this week, Vice Minister of Communication and Digital Affairs Nezar Patria said that AI, supported by big data and cloud computing, would help state-owned enterprises improve strategic planning processes, risk mitigation, service security, and financial optimization.
As reported previously, Indonesia recorded a 13.6 percent year-on-year increase in investment realization, reaching 942.9 trillion rupiah in the first half of 2025, with 1.25 million jobs created, the Ministry of Investment and Downstreaming said on Tuesday.
