Executive Summary

• E-commerce, fintech, mobility, and digital media contribute to an estimated USD 310 billion, projecting Indonesia to become a leading global economy by 2030
• Indonesia is to achieve over 90% internet penetration by 2030 with AI to curate personalised content
• Challenges & Strategic Priorities:
  – Talent Development: Indonesia collaborates with the government, academia and industry to build a digital talent workforce of 9 million by 2030.
  – Infrastructure Enhancement: AI advancements include establishing 450 data centers and 2 supercomputers as well as improving the Cloud Index to 80 and average internet speeds to 220 Mbps
  – Investment Growth: Ensure 5% of global investment flows (USD 20 billion) and the creation of 450 AI-focused startups to enhance Indonesia’s investment profile
  Immediate and coordinated action in talent and infrastructure is essential to fulfill Indonesia’s potential as a digital economy powerhouse by 2030.

The Rise of Attention Economy in Indonesia

On track to become one of the world’s top 7 by 2030, Indonesia’s digital sector is projected to reach USD 310 billion with an average CAGR of 16.7%. Indonesia also ranked 4^th globally for internet and social media usage, bolstering the state of the attention economy in Indonesia. This is where attention has become a coveted resource.

With expectations to encompass 90% of its population in internet and social media usage, the drastic drop in attention spans presents a challenge for the ambitious nation. According to a Microsoft study, attention spans between (insert the demographic and age) (is this global or for Indonesia specifically) have witnessed a 50% decrease from a 12-second span in 2000 to a 5-second span in 2022.

E-commerce is projected to be the future of the attention economy (Exhibit 1), fueled by 3 key aspects – youthful populace, dynamic consumer market, increased digital engagement.

Exhibit 1: Indonesia rises as a media and e-commerce powerhouse

With 66% of Indonesian consumers turning to e-commerce for non-food items, the potential is undeniable. The real question is – how can companies rise above the noise and dominate the market?

Win the heart of customers: How AI is changing the game

Here are several use cases where Indonesia’s top companies have effectively implemented AI to harness the attention economy.

1. Tokopedia
   Analyse user’s preferences to recommend personalised content across digital platforms to keep user engaged longer and increase the time spent on the platform
   

1. Dataxet Sonar
   AI-driven media intelligence platforms capture and analyse sentiments, trends, and industry content across channels to efficiently uncover valuable insights from the digital clutter.

• Telkomsel
  Voice assistants and AI-powered chatbots can engage users by providing instant, personalised responses to queries. This immediate interaction keeps users engaged and can increase brand loyalty and customer satisfaction.

• Nodeflux
  AI can analyse vast amounts of data from various sources to predict trends and patterns. This allows businesses to create or adapt strategies that align with emerging interests.

• PT KAI
  AI can assist in creating and curating content that is likely to capture and hold the audience’s attention. This includes generating articles, videos, and images tailored to the target audience’s interests.

Empowering Indonesia in the AI-Driven Attention Economy

According to LinkedIn’s 2023 report, Indonesia’s workforce exposure to AI is at 22% despite the country’s significant AI usage, further highlighting the lack of AI-talent-ready individuals in Indonesia. With the ICT sector requiring over 1.9 million workers in 2023, only 47.8% (~941,000) candidates qualified, while 1.32% (25,200) met the job requirements. Hence, Indonesia should prioritise AI development by:
1. Indonesia collaborates with the government, academia and industry to build a digital talent workforce of 9 million by 2030

2. AI advancements include establishing 450 data centers and 2 supercomputers as well as improving the Cloud Index to 80 and average internet speeds to 220 Mbps

3. Ensure 5% of global investment flows (USD 20 billion) and the creation of 450 AI-focused startups to enhance Indonesia’s investment profile

Indonesia’s journey towards mastering the AI-driven attention economy hinges on robust digital infrastructure, skilled talent, and innovative entrepreneurship. By concentrating on these pillars, the nation is poised to leapfrog into a future of technological empowerment and economic resilience.

Source
1. Open AI Report
2. Badan Pusat Statistik
3. Datareportal
4. Datacentremap.com
5. Asia Cloud Computing Association
6. Ookla
7. Top500.com
8. AI Index Report