Adoption is High, but Why Are AI Startups in Indonesia Still Low?

Clubnet Digital Clubnet Branding Identity Marketing

Jakarta, domclub Indonesia

Use of technology
artificial intelligence
(AI) in Indonesia is the highest in the Southeast Asia region.However, the number of start-up companies or
startups
There is still little AI in Indonesia.
This is recorded in the e-Conomy SEA 2025 report released by Google, Temasek and Bain & Company.The report reveals that adoption of AI technology in Indonesia is the highest in Southeast Asia.However, the number of AI startups in the country is not as large as its adoption.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
“If we look at applications that market their AI features, Indonesia is showing the strongest commercial momentum. Because we are leading the growth in revenue coming from applications with AI features by 127 percent from year to year,” said Veronica Utami, Country Director of Google Indonesia at the Google Indonesia Office, Jakarta, Thursday (13/11).
The report shows that Indonesian people have daily interactions and a very high level of trust in AI.Veronica said as many as 80 percent of respondents use and interact with AI tools and features every day.
“This means that we are ranked second highest in all of Southeast Asia and the difference is only a little, Vietnam at 81 percent,” said Veronica.
Then, 51 percent of respondents said they experienced time savings, especially in the research and comparison process.
In terms of workforce and AI skills, Indonesia is also experiencing quite rapid growth.Participation in training related to generative AI even increased threefold.
According to Veronica, today’s AI integration and adaptation is no longer a concept of the future, but a competitive advantage.
Even though AI adoption shows the highest value in Southeast Asia, this is not the case with the number of AI startups in the country.Indonesia only has around 45 AI startups, behind Malaysia with around 60 startups, and Singapore with more than 495 startups.
Veronica said this fact should be a whip for actors in Indonesia to participate in innovation and production.
He highlighted several factors that influence the growth of AI startups in Indonesia, ranging from skills to CapEx costs.
Veronica said skills are the main requirement for creating an AI startup.On the CapEx side, he said, there is a big difference between AI startups and conventional tech startups.
“AI startups require computing power with high processing, which means they also require large capital expenditure (capex). And that applies continuously. So, maybe the barrier to entry is indeed higher,” he explained.
Apart from that, the problem of infrastructure availability and pro-innovation regulations is also considered as a factor in the growth of the number of startups.
Furthermore, Veronica also highlighted the working principles of startups which have changed from initially only pursuing fast growth without thinking about monetization.Now, startups are looking for a clear monetization formula that promotes sustainability.
(lom/dmi)
[Gambas:domclub Video]

Read More: Untung365 Alternative Login Site Loan News Information |PHOTO: Live Streaming Becomes a Farm for Profit in the Era…

Read More: Beware of Chest Pain at a Young Age, Not Just Ordinary Muscle Problems

Kamu mungkin juga menyukai: