New Models of Work: Innovation for Fair and Future Ready Work in Indonesia 

On 20 August 2025, the Tech for Good Institute (TFGI), in partnership with the Ministry of Communication and Digital Affairs (KOMDIGI), hosted a roundtable discussion entitled “New Models of Work: Innovation for Fair and Future Ready Work in Indonesia.”
From left to right (starting from top row): Romora Sitorus, Ilsa Meidina, Palmira Bachtiar, Basilio Claudio, Gabriela Beatrice, Shela Ardhana, Aries Setiadi, Bony Suganda, Agus Pambagyo, Citra Nasruddin, Fairoz Ahmad, Chairul Saleh

Indonesia stands at a critical juncture in its digital transformation. Its digital economy stands out in Southeast Asia for its rapid growth, and is expected to surpass $130 billion by 2025.  Yet, nearly 59% of Indonesia’s workers remain in the informal economy, making the role of digital platforms in driving formalisation especially significant. With 64 million micro, small, and medium enterprises (MSMEs) as the backbone of its economy, digitalisation offers both an avenue to expand market access and a lever for productivity gains. However, the rapid expansion of AI and platform work also challenges existing governance frameworks, particularly around worker wellbeing, social safety nets, and skills readiness.

Amidst this context, our roundtable in Indonesia creates a vital dialogue amongst relevant stakeholders to discuss opportunities and challenges. On one hand, digital platforms have lowered entry barriers thereby enabling economic opportunities for vulnerable members of the population. Indonesia’s startup ecosystem and sectoral initiatives to streamline services have also showcased the productivity gain possible through digitalisation. On the other hand, significant challenges persist: skills mismatches between graduates and industry needs, the need for adaptive frameworks that can accommodate technological advancements, and infrastructural gaps that hinder equitable access to the digital economy.

The in-person roundtable brought together senior government officials, policy researchers, academics, development partners, and private sector representatives to explore how AI and digital platforms are reshaping the Indonesian workforce. This session was part of the New Models of Work series, which comprises four virtual discussions and three in-person events across Southeast Asia, designed to ground an understanding of regional work trends within specific local contexts.

 

Participants

  • Sonny Sudaryana, Acting Director of Digital Ecosystems, Ministry of Communications and Digital Affairs
  • Chairul Saleh, Assistant Deputy for Productivity Enhancement and Manpower Ecosystem Development, Coordinating Ministry for Economic Affairs Republic of Indonesia
  • Romora Sitorus, Chief Economist, Kartu Prakerja Program
  • Bony Suganda, Head of Marketing and Digitalization of Micro Enterprises, UMKM
  • Agus Pambagyo, Managing Partner, PH&H Public Policy Interest Group
  • Palmira Bachtiar, Head of Economy Cluster and Senior Researcher, The Smeru Institute
  • Ilsa Meidina, Social Protection Specialist, The World Bank
  • Aries Setiadi, Associate Researcher, CIPS
  • Shela Ardhana, Research Assistant, Institute for Development of Economics and Finance (INDEF)
  • Gabriela Beatrice, Research Assistant, Institute for Development of Economics and Finance (INDEF)
  • Citra Nasruddin, Programmes Director, Tech for Good Institute -moderator
  • Fairoz Ahmad, Programme Fellow, Tech for Good Institute -moderator
  • Regina Ng, Partnerships Lead, Tech for Good Institute -emcee
  • Bas Claudio, Programme Associate, Tech for Good Institute -scene setter
 

Key Takeaways:

1.Skills development must keep pace with technological adoption

Indonesia faces an industry skills mismatch as AI and digital platforms transform work. While many sectors are shifting toward AI adoption, large portions of the workforce remain low-skilled and informal, creating an exclusion risk. Technical skills, critical thinking, and soft skills are in particularly short supply, with digital literacy forming the baseline requirement for meaningful participation in the digital economy.  Government programs such as Merdeka Belajar Kampus Merdeka and Kartu Prakerja offer pathways for upskilling, yet challenges persist in quality and reach. For instance, while AI use among students is rising, guardrails and training are urgently needed to ensure technology enhances learning rather than undermines it. Building resiliency requires both rapid and adaptive changes to the vocational sector and the ability to keep curriculum design in sync with industry needs. This is especially urgent given how quickly technologies like AI are diffusing across sectors.  To maximise productivity, Indonesia will need an integrated approach to skills development—one that links microbusinesses, education providers, industry leaders, and government agencies to strengthen foundations for innovation and inclusion.

 

2. Effective governance and an enabling environment maximises workforce opportunities through digital platforms

Digital platforms are shaping Indonesia’s labor markets. Definitional clarity around gig jobs remains critical, as this underpins how regulations, benefits, and policies are designed. A greater understanding of gig and platform work—informed by real time evidence and data —would help both the government and private sector address digital platform issues.  Local governments also play a crucial role and can use digital platforms not just for private employment, but also for public service delivery and support for public workers. This indicates that Indonesia’s platform economy is not only about commerce and mobility, but also about broadening access to essential services.

 

3. Effective collaboration and sustained investments are prerequisites for workforce resiliency

Indonesia’s ability to harness its digital workforce depends on effective coordination and strategic investments.  Fragmented regulation across ministries risks leaving gaps in protection and enforcement. Improving workforce regulatory models through leveraging data, consulting with multiple stakeholders, and adapting best practices from other countries when possible can contribute to a more robust workforce. At the same time, improving basic infrastructure is critical by addressing the digital divide and the lack of basic broadband access in many of Indonesia’s remote communities. Doing so can enable more members of the population to participate in the digital economy.  Public private partnerships,  expanding training access, and strengthening skills pipelines  are all significant measures towards building a more resilient labour pool for the future of work.

 

Download Report

Download Report

Latest Updates

Latest Updates​

Tag(s):

Keep pace with the digital pulse of Southeast Asia!

Never miss an update or event!

Mouna Aouri

Programme Fellow

Mouna Aouri is an Institute Fellow at the Tech For Good Institute. As a social entrepreneur, impact investor, and engineer, her experience spans over two decades in the MENA region, South East Asia, and Japan. She is founder of Woomentum, a Singapore-based platform dedicated to supporting women entrepreneurs in APAC through skill development and access to growth capital through strategic collaborations with corporate entities, investors and government partners.

Dr Ming Tan

Senior Fellow & Founding Executive Director

Dr Ming Tan is Senior Fellow at the Tech for Good Institute; where she served as founding Executive Director of the non-profit focused on research and policy at the intersection of technology, society and the economy in Southeast Asia. She is concurrently a Senior Fellow at and the Centre for Governance and Sustainability at the National University of Singapore and Advisor to the Founder of the COMO Group, a Singaporean portfolio of lifestyle companies operating in 15 countries worldwide. Ming was previously Managing Director of IPOS International, part of the Intellectual Property Office of Singapore. Prior to joining the public sector, she was Head of Stewardship of the COMO Group.


Ming also serves on the boards of several private companies, Singapore’s National Volunteer and Philanthropy Centre, Singapore Network Information Centre (SGNIC), and on the Digital and Technology Advisory Panel for Esplanade–Theatres on the Bay, Singapore’s national performing arts centre. Her current portfolio spans philanthropy, social impact, sustainability and innovation.