Southeast Asia is at a pivotal juncture in its digital economy journey, with AI adoption accelerating across industries. Estimates suggest that AI can deliver USD 835 billion in economic benefits to businesses in Southeast Asia (SEA) by 2030, representing 16% of its combined GDP. The region’s growing digital economy has opened new opportunities, but it also poses challenges, particularly for the workforce. These regional dynamics manifest uniquely in local contexts, such as in Indonesia, where AI adoption is transforming key sectors like manufacturing, retail, and agriculture. A report by LinkedIn, entitled Harnessing AI: Transforming Southeast Asia’s Workforce, finds that in Indonesia alone, over 57% of job roles have the potential to be either disrupted or augmented by AI, presenting both opportunities and challenges for its workforce. Despite this potential, Indonesia faces significant hurdles, including a supply-demand mismatch in AI skills, low digital literacy, and unequal access to technology, especially in rural areas. The AI talent pool remains limited, underscoring the need for targeted investments in digital upskilling. These challenges highlight the importance of tailored strategies that address Indonesia’s specific workforce needs while aligning with broader regional trends.

Despite these obstacles, the potential of AI to drive inclusive growth and innovation remains vast. Overcoming the skills gap requires coordinated efforts among government, industry, and academia. A skills-based approach to hiring, focusing on competencies rather than traditional qualifications, can expand the talent pool by up to nine times in Indonesia.

Amidst this backdrop, the Tech for Good Institute (TFGI) partnered with LinkedIn to convene a roundtable discussion with Indonesian stakeholders. The event gathered representatives from key ministries, skills and labour agencies, the private sector, local business associations, educational institutions, and think tanks to explore strategies for realising AI’s potential in Indonesia’s workforce. LinkedIn shared key findings from its aforementioned report, providing data-driven insights into AI’s transformative impact. The roundtable aimed to identify regional workforce trends and how they manifest in Indonesia, providing a clearer picture of the country’s unique challenges and opportunities in AI adoption. Additionally, it sought to highlight Indonesia-specific approaches and best practices that could be adapted and replicated throughout Southeast Asia to foster a more resilient and future-ready workforce.

Moderators and Participants

• Prof. Yudi Darma, Director, Ministry of Higher Education, Science, and Technology
• Sonny Hendra Sudaryana, Director of Digital Ecosystem Development, Ministry of Communicationand Digital Affairs

• Romora Edward Sitorus, Chief Economist, Coordinating Ministry for Economic Affairs

• Eyla Alivia Maranny, Head of Scholarship, Ministry of Communication and Digital Affairs

• Berton Pasaribu, Head of Empowerment Sub-Coordinator, Ministry of Manpower

• Khansa Khalisha, Professional Expert Staff, Coordinating ministry for Human Development and Culture 

• Muhammad Fadhlan Rifki Weno, Executive Director, ASEAN Business Advisory Council

• Anthea Haryoko, Chief Operating Officer (CEO), Center for Indonesian Policy Studies (CIPS)

• Arief Suseno, Director of AI National Skills, Microsoft Indonesia

• Oscar Syabhana, Chief Executive Officer, Vidavox

• David Woodward, Vice President, Regional General Counsel and Head of Public Policy, APAC Linkedin

• Trisha Suresh, Head of Public Policy, Southeast Asia, LinkedIn

• Citra Handayani Nasruddin, Programme Director, Tech for Good Institute

• Ming Tan, Founding Executive Director, Tech for Good Institute

• Basilio Claudio, Programme Associate, Tech for Good Institute

Key Takeaways

1. Closing the AI skills gap is essential for inclusive growth

Indonesia faces a persistent supply-demand skill mismatch in AI, driven by rising business needs, limited human capital, and low digital literacy. Addressing this gap is essential for ethical AI adoption and inclusive economic growth. Strengthening AI literacy at all levels, from basic digital skills to advanced AI competencies, is an important priority. Government initiatives, such as targeted training programs, the establishment of job training centers, including in fields like AI, and the implementation of national AI roadmaps, which aim to expand AI talent and reduce disparities, should be strengthened. Moreover, integrating AI education into school curriculums and promoting early exposure to digital tools is a crucial step in building a future-ready workforce. Lastly, expanding digital infrastructure access in rural and underserved areas is key to reducing digital inequalities and fostering increased participation in the digital ecosystem.

2. Cross-sector collaboration is key to bridging AI upskilling gaps

Cross-sector collaboration is crucial in bridging AI upskilling gaps. Partnerships between educational institutions, industry, and government can align curricula with evolving market needs and ensure broader access to AI training. Embedding AI literacy into vocational education, coupled with incentives for businesses to invest in workforce development, can help close the digital divide and foster inclusive growth. Additionally, capacity building in the form of industry-led training programs and public-private partnerships in scaling up AI education must also be pursued. Addressing regional disparities through localised strategies is also crucial to ensuring that upskilling initiatives reach rural communities and marginalised groups who are often left behind in digital transformation efforts.

3. A skills-based approach expands the AI talent pool and future-proofs the workforce

A skills-based hiring approach is a powerful strategy to expand Indonesia’s AI talent pool. By focusing on competencies over traditional qualifications, employers can tap into a broader talent base and better prepare for the evolving demands of the future of work. This approach also supports lifelong learning, enabling workers to continuously upskill and adapt to technological changes. Alternative education pathways, such as micro-credentials, bootcamps, and online learning platforms, are effective options for equipping workers with in-demand skills. Additionally, fostering a culture of continuous learning within organisations is essential to maintaining a competitive edge in the AI-driven economy. Governments can incentivise the private sector to adopt skills-based hiring practices. Governments can also support programs that facilitate transitions for workers affected by AI-driven job disruptions.