Indonesia has announced plans to invest heavily in its digital public infrastructure, with digital ID and artificial intelligence (AI) as the foundational pillars.
The Indonesian economy grew 5% year-on-year in the third quarter, with the government’s stimulus packages providing the country a much-needed boost. Local reports indicate that the packages will be extended to 2026, with digital transformation among the sectors to be prioritized.
Indonesia’s digitalization journey will largely rely on the success of its digital ID rollout. Currently, the ID, known locally as Identitas Kependudukan Digital (IKD), has been issued to 17 million Indonesians, way below the country’s targets. The government intends to double down on its efforts in 2026, says Teguh Setyabudi, the Director-General of the civil registry, Dukcapil.
“We will continue to strengthen security while also simplifying verification processes so they can be integrated into a wider range of public services,” he told the attendees of the Digital Identity Forum in Jakarta.
The Indonesian government is currently trialing the application of the IKD in limited pilots. One is the digitalization of the social assistance program, known as Perlinsos. In the pilots, residents had to register using the digital ID, and according to Teguh, it proved that the IKD can minimize costs and enhance targeting accuracy.
“This pilot has been successfully implemented and can be scaled up in other regions and extended to other strategic government policies,” he stated.
Teguh revealed that Indonesia’s slower rollout has allowed it to observe other countries’ programs and learn from their mistakes. For instance, India’s vastly successful Aadhaar has been affected by authentication outages and limited infrastructure in rural areas. Indonesia can mitigate the impact of similar outages by establishing offline backups and utilizing multiple authentication options in case some fail.
While Indonesia has only registered 6% of its population, the digital ID is delivering tangible results, Teguh said earlier this year.
“In addition to making it easier for people to get basic government services such as education and health services, the digital ID system has also increased the number of people opening bank accounts, financial services, and digital wallets,” he stated.
As the largest Southeast Asian country in terms of economy, geography, and population, Indonesia’s digital ID campaign will shape the region’s rollout. However, some, like the Philippines, Singapore, and Malaysia, are farther ahead in their campaigns.
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Source: https://coingeek.com/indonesia-invests-in-digital-id-ai-to-boost-economy/
