AI and the Future of Work in Indonesia: 2025 Outlook

The integration of Artificial Intelligence (AI) into the Indonesian job market is expected to significantly alter the employment landscape by 2025. Key sectors such as manufacturing, finance, and services are anticipated to undergo substantial transformations due to AI adoption. While AI is projected to displace certain job roles, it is also expected to create new opportunities, particularly in tech-driven fields. The Indonesian government and private sector are actively working to prepare the workforce for these changes through strategic initiatives and educational reforms.

June 2025 Indonesia Research Report

1. Introduction

The rapid advancement of AI technologies is reshaping global job markets, and Indonesia is no exception. As AI becomes more integrated into various sectors, it is crucial to understand its impact on employment, the types of jobs that are at risk, and the new opportunities that may arise. This report explores the sectors most affected by AI in Indonesia, the balance between job displacement and creation, and the strategies being implemented to ensure the workforce remains relevant in this evolving landscape.

2. Key Findings

2.1 Sectors Impacted by AI

  • Manufacturing and Automation: AI is expected to revolutionize manufacturing processes, leading to increased efficiency but also potential job losses in manual labor roles .
  • Finance and Banking: The finance sector is leveraging AI for tasks such as fraud detection and customer service, which may reduce the need for certain clerical positions .
  • Service Industry: AI-driven customer service solutions are being adopted, potentially impacting jobs in call centers and customer support .
Figure 1. Estimated AI Impact by Sector in Indonesia (2025)

2.2 Job Displacement vs. Creation

Displacement

  • Data entry
  • Routine manufacturing tasks
  • Basic customer service

Source

Creation

  • AI development
  • Data analysis
  • Digital marketing

Source

Figure 2. Projected Job Displacement vs. Creation due to AI (2025)

2.3 Workforce Preparation

  • Government Initiatives: The Indonesian government is finalizing an AI roadmap to enhance workforce readiness, focusing on digital literacy and AI skills .
  • Private Sector Efforts: Companies are investing in AI bootcamps and training programs to upskill employees, aligning with the national AI strategy .

2.4 Solutions for Workforce Relevance

  • Continuous Learning and Upskilling: Emphasizing lifelong learning and continuous skill development to adapt to new technologies .
  • Collaboration with Educational Institutions: Partnering with universities and vocational schools to align curricula with industry needs, focusing on AI and digital skills .
  • Policy and Regulatory Support: Developing policies that support workforce transition and protect workers' rights in the face of technological disruption .

3. Comparative Analysis

Aspect Indonesia Other Southeast Asian Countries
AI Integration Focus on manufacturing, finance, and services Similar focus with additional emphasis on agriculture
Workforce Training Government-led AI roadmap and private sector bootcamps Collaborative regional initiatives and cross-border training programs
Job Creation Emphasis on tech roles and digital marketing Broader scope including AI ethics and policy roles

4. Conclusions & Outlook

The impact of AI on Indonesia's job market is multifaceted, with both challenges and opportunities. While certain jobs are at risk of displacement, the potential for new, high-skilled roles is significant. The success of Indonesia's transition to an AI-driven economy will depend on effective implementation of government policies, private sector collaboration, and continuous adaptation of the workforce. Future research should focus on measuring the outcomes of current initiatives and exploring the long-term economic impacts of AI integration in Indonesia compared to its regional counterparts.

5. Methodology

This report synthesizes data from government publications, industry reports, and reputable news sources. Key findings are supported by references to primary research and expert commentary. Comparative analysis draws on regional studies and international benchmarks to contextualize Indonesia's AI workforce transition.