Salesforce’s newly released Global AI Readiness Index paints a sobering picture of Indonesia’s preparedness for an AI-powered future. Despite clear ambitions and ongoing policy initiatives, the country remains in the early stages of ecosystem development, with significant challenges in areas such as innovation, investment, and talent development.

The index, which evaluated 16 global markets across five dimensions—regulatory frameworks, AI adoption, innovation, investment, and human capital—places Indonesia in the lower tier of AI readiness overall. While the country has introduced a national AI strategy and signalled commitment to digital transformation, these intentions have yet to translate into robust infrastructure or capability.

In the area of regulatory readiness, Indonesia earned a relatively strong score of 7.6 out of 10. The country has adopted AI strategies and digital governance policies that signal a clear intent to embrace AI’s economic and societal potential. However, the report notes the absence of scale-ready institutional mechanisms and legal clarity, which remain key barriers to effective deployment.

Without frameworks that enable risk-based, globally interoperable governance, the strategies remain largely theoretical.

Indonesia’s efforts to integrate AI into public services and industry are still nascent. With a score of 6.3 in the “diffusion and adoption” dimension, the country trails behind more mature ecosystems where AI is actively reshaping service delivery and operational efficiency. Though some initiatives are underway—particularly in smart city development and industrial modernisation—the overall integration of AI into mainstream business and public sector functions remains limited.

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The index’s authors recommend that governments prioritise AI adoption in public sector transformation, including revising procurement processes, investing in digital maturity, and training civil servants. Such steps, it suggests, could enable Indonesia to bridge the gap between policy design and operational impact.

Indonesia scored just 0.2 out of 10 in the innovation category, underscoring deep constraints in the research and development ecosystem. The index points to limited R&D funding, sparse academic-industry collaboration, and a lack of institutional infrastructure as core issues. These challenges have made it difficult for the country to adapt AI technologies to local needs, resulting in a high reliance on imported platforms and tools.

The findings suggest that without a stronger innovation base, Indonesia risks falling behind in the development of agentic AI systems—those capable of autonomous decision-making within digital or physical environments. To address this, the report calls for increased cross-border collaboration and shared R&D efforts, particularly in areas related to AI safety and standards.

Fragmented investment landscape, human capital inhibit scale-up

Indonesia’s investment environment for AI ventures is marked by fragmentation and low risk appetite. With a score of 0.3 out of 10 for AI investment readiness, the index highlights the limited access to growth-stage capital as a major stumbling block. National AI strategies exist, but they have not yet catalysed a supportive investor ecosystem or meaningful policy incentives.

This funding gap particularly affects small and medium-sized businesses (SMBs), many of which struggle to adopt AI due to resource constraints. The index recommends targeted incentive schemes—such as cloud credits or innovation vouchers—to help lower the barriers to entry for these enterprises.

The final dimension assessed in the index—human capital, AI talent, and skills—yielded a score of 3.1 out of 10 for Indonesia. The report highlights misalignment between the education system and industry needs, a lack of applied AI training programmes, and limited opportunities for reskilling. These factors are seen as critical in explaining the country’s relatively low AI workforce readiness.

To close this gap, the report advocates for the establishment of AI centres of excellence, expanded public-private partnerships in training, and the introduction of sector-specific curricula. The goal is to build a more agile and technically competent workforce capable of supporting Indonesia’s digital ambitions.

A roadmap for transformation, not just diagnosis

Though the report stops short of offering country-specific recommendations, its six global policy guidelines are clearly applicable to Indonesia’s situation. From scaling AI in the public sector to improving governance, investing in talent, and enabling cross-border innovation, the steps outlined provide a roadmap for countries at an inflection point in their digital journey.

Indonesia, with its large population and growing digital economy, stands to benefit significantly from AI—but only if it can address the structural weaknesses that currently hold back its progress. The path forward will depend not just on strategic intent, but on sustained institutional effort, policy execution, and international collaboration.

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