Infrastructure is the backbone of an intelligent economy: Joko Widodo

Key Concepts

• IMD World Digital Competitiveness Ranking: An annual ranking that assesses how countries develop, adopt, and apply digital technologies.
• Intelligent Economy: An economy driven by data, artificial intelligence, and advanced digital technologies.
• Digital Infrastructure: The physical and digital networks, systems, and platforms that support digital activities.
• Human Resources Development: Investing in education and training to equip the workforce with necessary digital skills.
• Artificial Intelligence (AI): A broad field of computer science focused on creating systems that can perform tasks typically requiring human intelligence.
• Machine Learning: A subset of AI that allows systems to learn from data without explicit programming.
• Redefining Growth: Adapting economic strategies and systems to align with the demands of the digital and intelligent economy.

Indonesia's Digital Competitiveness and the Vision for an Intelligent Economy

The transcript discusses Indonesia's recent slip to 51st place in the IMD World Digital Competitiveness Ranking for 2025, positioning it as second lowest among ASEAN nations. This decline highlights a significant gap between former President Joko Widodo's vision of an "intelligent economy" and the country's current capabilities in digital skills and policy execution.

Bridging the Digital Gap: Widodo's Perspective

In an interview with CNN's Roland Lim at the Bloomberg New Economy Forum, Mr. Widodo outlined the necessary steps to bridge this gap. He emphasized the need for:

• Investment in Infrastructure: This includes both physical infrastructure and, crucially, digital infrastructure. He mentioned initiatives like the Palapa Ring project and efforts to expand internet access.
• Government Regulation and Support: The government plays a vital role in creating an environment conducive to the intelligent economy. This involves enacting regulations that support digital transformation and fostering an ecosystem where companies and industries can thrive.
• Human Capital Development: A core argument is the necessity of preparing people, especially the younger generation, for the demands of the intelligent economy. This goes beyond just understanding AI; it involves equipping them with the skills to thrive in this new landscape.

Preparing the Younger Generation for the Intelligent Economy

Mr. Widodo stressed that the responsibility lies with the government and institutions to ensure that the youth and the general population understand and are prepared for the intelligent economy. This preparation involves:

• Education in Digital Skills: Equipping individuals with knowledge about AI and machine learning is paramount.
• Developing Digital Literacy: Fostering a strong digital foundation is essential for individuals to seize future opportunities.
• Creating Opportunities: With the right skills and digital literacy, opportunities will naturally emerge.

The Impact of AI on Job Opportunities

Addressing concerns about AI and automation leading to job losses, Mr. Widodo believes that while jobs may change, they will not disappear entirely. Instead, they will evolve into different forms. The key is to equip people with the skills, particularly in AI and machine learning, to adapt to these evolving roles.

Redefining Growth in the Intelligent Economy

The concept of "redefining growth" is central to adapting to the new era. Mr. Widodo argues that the processes and systems need to be redefined because:

• AI Integration: Companies and industries will increasingly leverage AI in their operations.
• Outdated Systems: Existing systems may become obsolete and need to be re-evaluated and updated to incorporate AI.
• Policy and Decision-Making: Redefining processes and systems is crucial for effective decision-making and policy formulation in the intelligent economy.
• Balancing Profit and People: The redefined growth must consider both economic profitability and the well-being of the people.

Vision for Indonesia's Future

Mr. Widodo expressed an optimistic vision for Indonesia in the next 5 to 15 years. He foresees a future where:

• Advanced Technology Integration: The country will see the widespread use of advanced technologies, potentially including humanoid robots.
• Improved Human Resources: There will be a significant enhancement in the quality of human resources, with a better-equipped and skilled workforce.
• Overall Progress: Indonesia will be a better place, driven by technological advancements and a more capable population.