26 September 2023

INDONESIA: AI to replace lower-grade PS staff

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INDONESIA

Indonesian President Joko Widodo has announced a major shake-up of the country’s Public Service, ordering Government Agencies to replace lower levels of work with artificial intelligence (AI).

Speaking at a meeting of business leaders, Mr Widodo said this would cut red tape and improve investment.

He said the country must transition to higher-end manufacturing, such as electric vehicles, and use raw materials like coal and bauxite in such industries.

Widodo said he would improve the business climate by fixing dozens of overlapping rules and cutting red tape in the Public Service.

“To reduce bureaucracy, the current top four tiers in Government Agencies will be flattened to two next year,” Mr Widodo said.

“I have ordered the Minister of Administrative and Bureaucratic Reform to replace them with AI. Our bureaucracy will be faster with AI.”

He did not provide further details, including any guidance on which specific roles would be removed or how the technology would be used.

He said the reforms would be contained in one of a number of Bills the Government would present to Parliament. One involved tax reform and another would address labour issues.

Mr Widodo reiterated the Government’s outlook that Indonesia’s economy would grow by a little over five per cent amid a global economic slowdown.

Political parties in Widodo’s ruling coalition control 74 per cent of the seats in Parliament, making it easy for his administration to push through legislation.

Jakarta, 30 November 2019

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