Summary
Since 2014, GraSPP has been organizing workshops and seminars to foster intellectual exchange between Japan and Indonesia, as well as among Asian countries. This article summarizes the discussions at the most recent seminar held in Jakarta, Indonesia.
On February 18, 2025, GraSPP and the Institute for Economic and Social Research, Faculty of Economics and Business of the University of Indonesia (LPEM FEBUI) hosted the event jointly with the Asian Development Bank Institute (ADBI) as a policy dialogue under the Indonesia-Japan Policy Research Forum for Asia with the financial support of the Toshiba International Foundation (TIFO). The seminar titled “Exploring Artificial Intelligence Potential in Achieving Sustainable Development in Asia” attracted about 100 academic, government, and private-sector participants from Indonesia, Japan, and the Philippines.
Background
Since 2015, the Sustainable Development Goals (SDGs) have been implemented globally to achieve the goals in 2030. These goals encompass a range of challenges, such as poverty, industrialization, and climate change. Many countries, including those in Asia, have developed and implemented programs to achieve these goals. However, the Asia and the Pacific SDG Progress Report 2023 shows that this region has been derailed from achieving the SDGs by 2030 due to multiple global crises. The recent economic and social turmoil also put pressure on the allocated government budget to achieve the goals.
Along with the implementation of the SDGs, artificial intelligence (AI) has developed rapidly and spurred a remarkable transformation globally. In broader terms, AI is expected to benefit society, the economy, and the environment. Furthermore, if AI is implemented effectively, it can drive inclusive and sustainable growth, reduce poverty and inequalities, advance environmental sustainability, improve lives, and empower individuals in all societies across all stages of development.
Several concerns are associated with integrating AI into the SDGs. The rapid development of AI necessitates effective regulatory oversight to support the responsible use of AI-based technologies and facilitate sustainable development. Failure to do so could result in gaps in transparency, safety, and ethical standards. Making effective use of AI and mitigating its potential negative impacts is crucial for the future of humanity and the environment.
Given such an issue, the Indonesia-Japan Policy Research Forum for Asia discussed how countries can effectively integrate AI into their policies and programs.
The titles and affiliations of the participants referred to in the summary are those of the event date.
Opening session
Dr. Vid Adrison, Head of the Economics Department at the FEBUI, welcomed speakers and participants on behalf of Dean Teguh Dartanto while celebrating the 20th anniversary of the long-standing intellectual exchanges with Japanese counterparts. He thanked the LPEM FEBUI and its counterparts, the University of Tokyo’s GraSPP and the ADBI, for their contributions, as well as the TIFO for its continued financial support in organizing the annual events. Highlighting this year’s theme, he stressed the importance of understanding how AI was used, by whom, and under what conditions. He called for each and every stakeholder to take concrete actions to maximize the benefits of AI for inclusive and sustainable development.
Dean Tetsushi Sonobe of the ADBI delivered his welcome remarks online. He underscored both the opportunities and challenges that AI presented for sustainable development: “AI has the potential to reduce poverty and inequality, address climate change, and advance environmental sustainability. He added, “Without appropriate governance and oversight, however, it can also pose significant risks to our society, including ethical concerns, biases, privacy, and security issues.” Furthermore, he highlighted the environmental footprint of AI and advocated for a balanced approach to AI development and implementation, ensuring the quality and inclusiveness of AI-enabled solutions for delivering a sustainable and inclusive future.
Mr. Pujo Setyo, representing the Coordinating Ministry of Economic Affairs, delivered Minister Airlangga Hartarto’s message on his behalf, highlighting Indonesia’s digital transformation and its commitment to sustainable development through the use of AI. Emphasizing Indonesia’s ambitious goal of becoming a developed nation and one of the world’s top five economies by 2045, he argued that digital technology would play a crucial role in nearly tripling the economy from 2022 to 2045. He also highlighted how AI would contribute to and play a catalytic role in achieving the SDGs by 2030, including advancements in good health and well-being (SDG 3), quality education (SDG 4), decent work and economic growth (SDG 8), and industry, innovation, and infrastructure (SDG 9). Furthermore, he emphasized the need for the ethical implementation of AI and cooperation among governments, professional institutions, and the private sector to foster a cohesive and thriving domestic digital ecosystem. He concluded by expressing appreciation to the event organizers and speakers and hoped that this Forum would have a positive impact on the future of technology and the digital economy.
Session 1. Artificial intelligence for inclusive development
Session 1 aimed to promote the sharing of knowledge and experiences among government officials, academics, and private-sector stakeholders from Asia, seeking a holistic view of the role of AI in inclusive development.
Prof. Toshiro Nishizawa from the GraSPP, as the session moderator, reflected on the 20-year history of intellectual exchanges between Japan and Indonesia since 2004 and expressed gratitude for LPEM’s long-standing partnership. On the subject of Session 1, he acknowledged AI’s rapid development, which had spurred a remarkable digital transformation locally and globally, and its considerable potential to benefit people’s lives and promote inclusive and sustainable socio-economic development. He highlighted the concerns and risks posed by AI, such as deepening digital divides, exacerbating social exclusion, and amplifying systemic biases in health, education, and justice systems, among other issues. He argued for the need to address ethical and global governance issues, with concerns about “automation complacency” in mind.
Ms. Vivi Yulaswati, Deputy for Economic and Digital Transformation at the Ministry of National Development Planning (BAPPENAS) of Indonesia, shared the government’s perspectives and experiences on leveraging AI to foster inclusive development. She first mentioned how AI had been integrated into various aspects of people’s daily lives and was increasingly deployed in areas such as traffic management, public healthcare, education, city planning, and environmental monitoring. She identified the four key implementation challenges despite these advancements: the misuse of AI, particularly regarding intellectual property rights and transparency; job displacement and the widening digital divide; bias in AI systems; and data dependency with AI’s effectiveness constrained by the availability and quality of data. To address these challenges, she emphasized the importance of a single national master data source for all ministries at all levels. She underscored BAPPENAS’s pivotal role in orchestrating Indonesia’s digital transformation, particularly within the Digital Government Pillar, by developing Digital Public Infrastructure (DPI) and establishing protocols for data sharing and exchange. Furthermore, she illustrated how BAPPENAS had long utilized AI to enhance data-driven decision-making and optimize public services in their national development planning. She concluded by sharing forward-looking ideas for applying AI in public services, such as maximizing the delivery of school meal programs and improving the distribution of proper fertilizers.
Mr. Kishore Babu Yerraballa, the Area Representative for Southeast Asia at the International Telecommunication Union (ITU), provided insights into the ITU’s pivotal role in global digital transformation as a United Nations specialized agency for information and communication technologies (ICTs) to make technology more accessible and affordable and shared ways for participants to engage. He focused on the digital divide, where 5.5 billion people were online and 2.6 billion remained offline, highlighting significant digital gaps across urban and rural areas, different income groups, genders, and generations. Mr. Yerraballa underscored that bridging these digital gaps was crucial to ensuring digital inclusion, allowing everyone to benefit from AI and digital advancements. To achieve this, he emphasized the need for collaboration among governments, industry, and academia. He also introduced various ITU initiatives on digital inclusion, including ITU Academy, one of the capacity development programs that offered free, self-paced training on digital skills. Furthermore, he elaborated on ITU’s role in providing technical assistance and regulatory support, which guided countries in adopting digital policies and infrastructure.
Mr. Ibrahim Kholilul Rohman, Senior Research Associate at the Indonesia Financial Group (IFG) Progress and a lecturer on digital economics at FEBUI, illustrated his empirical analysis of the impact of AI on industrial robotics in developing countries. He presented the impacts on Indonesia, using Japan as a comparative case, and emphasized that the key challenge for developing countries was not whether to adopt AI but instead how rapidly to do so relative to developed economies, as the adaptation process was underway simultaneously around the world. The analysis revealed that Japanese adaption to industrial robots reduced the ability of Indonesian exports, while domestic adoption would bolster exports. Moreover, he showed that automation reduced employment in both production and non-production sectors, with non-production roles, which typically had higher wages, being more severely affected as firms sought cost-cutting solutions; the adoption of robots in Japanese manufacturing was associated with a loss of 3 production jobs and 27 non-production jobs in Indonesia. Furthermore, he emphasized that the adoption of domestic robots would widen wage inequality. He concluded his presentation by proposing that governments should balance AI adoption with labor market policies and invest in education, upskilling, and innovation-friendly policies to foster long-term growth.
Keynote address
Dr. Bambang Brodjonegoro, Special Advisor to the President for Economic Affairs and National Development and ADBI’s dean designate, emphasized how AI could completely transform sustainable development. He cited studies that forecast significant GDP growth and demonstrated how AI could help achieve numerous SDGs, particularly those related to health. He shared a powerful example, illustrating how AI-driven machine learning could improve targeted financial aid. Dr. Brodjonegoro highlighted an important point about data accessibility, particularly in healthcare, where data exchange protocols were lacking and hindered AI’s potential with real-world implications, as demonstrated by a personal anecdote about the inaccessibility of hospital data. He raised a compelling counterpoint and reminded the audience that talent gaps, unequal infrastructure, and funding imbalances posed significant challenges, and it was crucial to consider how to apply these insights into practice by addressing data access, skills development, and equitable resource allocation. He concluded that one of the key challenges going forward would be ensuring sufficient green electricity supply, especially for AI-driven data centers, which required significant power and access to renewable energy sources.
Session 2: Country experiences in adopting AI for sustainable policy
Session 2 aimed to promote the sharing of knowledge and experiences among government officials, academics, and private-sector stakeholders from Asia in integrating AI into governance frameworks and mobilizing the technology toward sustainability.
Mr. James Correia from ADBI, as the moderator, framed the discussion around AI governance and environmental impact by outlining four regulatory models while noting the lack of binding sustainability policies. He emphasized AI’s potential for climate solutions, alongside its increasing energy consumption and emissions, setting the stage for expert insights on balancing innovation with sustainability.
Mrs. Diane Gail Maharjan from the National Economic and Development Authority (NEDA) of the Philippines shared compelling insights into the transformative potential of AI in the Asia-Pacific region. She presented striking market projections, showing the Philippines’ AI sector growing from US$1.0 billion to US$3.5 billion by 2030. Her presentation provided valuable insights into the practical implications of AI governance, illustrating how enabling policies and workforce development could foster sustainable growth. A significant point raised by Mrs. Maharjan illuminated the diverse applications of AI across the agriculture, energy, and climate resilience sectors. The initiatives she showcased highlighted that the implementation of AI faced tangible challenges, ranging from regulatory gaps to infrastructure limitations. She emphasized that, in considering future developments, regional collaboration and inclusive deployment would be essential. Looking ahead, she noted that one of the key opportunities lay in aligning AI strategies with national sustainability goals. She concluded that moving forward, the critical challenge would be balancing rapid AI advancement with equitable access to ensure that technology served as a bridge, rather than a barrier, to sustainable development.
Mr. Alvin Francis Tamie, Chief Technology Officer at Ruangguru, an innovative startup in the education sector, presented the company’s AI-enabled applications, highlighting its mission to address educational disparities. He emphasized the combination of high-quality content and innovative technology, including adaptive learning and gamification, had demonstrably improved student engagement. A powerful example was shared to illustrate how Ruangguru’s AI tutor provided personalized support, enhancing the learning experience. He also detailed the company’s multi-product strategy, catering to diverse learning needs, and highlighted an important point about its omnichannel approach to integrating online and offline learning through learning centers. He concluded that one of the key opportunities would be further developing AI-driven solutions to address the evolving needs of learners and the workforce.
Prof. Masaru Yarime from the Hong Kong University of Science and Technology highlighted the critical balance needed in AI governance between fostering innovation and ensuring ethical oversight. He shared a powerful example to illustrate how regulatory sandboxes in the financial services sector helped navigate legal uncertainties while maintaining the ethical integration of AI. His compelling insights were about data-sharing challenges in healthcare, where inconsistent testing standards continued to hinder the adoption of AI. These discussions reminded the audience that AI governance was not just an abstract debate but had real-world implications for privacy, bias prevention, and regulatory effectiveness. Prof. Yarime emphasized the importance of governments in developing transparent mechanisms and promoting stakeholder participation while aligning with international frameworks such as the OECD principles. One of the key challenges he described was how to implement cloud computing governance across multiple lifecycle stages, addressing security and compliance concerns. He concluded that it was crucial to consider how these insights could be applied to develop proactive policy frameworks that support the responsible deployment of AI while protecting the public interest.
Session 3: Leveraging AI for innovation and transformation
Session 3 aimed to promote the sharing of knowledge and experiences in exploring AI-driven solutions for advancing public policy innovation in Asia. The discussion centered on the practical application of AI technologies to address critical challenges and promote sustainable development.
Ms. Prani Sastiono from LPEM FEBUI moderated the session, focusing on the practical implementation of AI to address critical challenges and promote sustainable development.
Dr. Shinobu Yume Yamaguchi, Director of the United Nations University Institute for the Advanced Study of Sustainability, provided a thought-provoking perspective on the role of AI in education and sustainable development. Her presentation unveiled startling insights about AI’s environmental impact, noting that ChatGPT’s daily energy consumption matched that of 180,000 US households. A compelling illustration emerged from the Health and Environmental Sciences Institute (HESI) Action Group’s work, demonstrating how collaborative platforms could address the dual nature of AI in higher education. Dr. Yamaguchi brought attention to the critical reality that AI systems operate on probabilities, requiring robust ethical governance at all levels. These observations reinforced that AI integration in education was not merely about technological advancement but carried significant environmental and cultural implications. Dr. Yamaguchi stressed that maintaining the balance between innovation and cultural preservation would be crucial as institutions continued to evolve. She concluded that the biggest challenge would be to develop comprehensive ethical frameworks through initiatives like the UNU Global AI Network while ensuring that AI’s usage in schools was sustainable and respectful of diverse cultures.
Mr. S.T. Setiaji, Senior Advisor of Health Technology to the Minister of Health, highlighted Indonesia’s gradual transformation of its healthcare system through digital innovation. He addressed key challenges, such as inefficient patient visits and fragmented health data, and emphasized the need for AI to enhance safety, efficiency, and accessibility. His presentation outlined national regulations, including AI ethics policies and the Personal Data Protection Law, to ensure the responsible adoption of AI in healthcare. Mr. Setiaji showcased AI-powered advancements, such as automated chatbots for child nutrition and AI-driven radiology tools for lung cancer detection. He explained how regulatory and innovation sandboxes supported the development of digital health, fostering breakthroughs in telehealth and population health management; AI initiatives, such as SATUSEHAT, played a crucial role in integrating health data and expanding services across Indonesia’s 17,000 islands. His insights emphasized the importance of ethical AI governance and talent development in sustaining innovation. In conclusion, Mr. Setiaji underscored the transformative potential of AI in building a more efficient, equitable, and patient-centered healthcare system.
Mr. Muhammad Agus Mubarok, Chief of Smart City Studies and Management at Jakarta Smart City, shifted the focus to urban development and offered valuable insights into Jakarta’s smart city initiatives. His presentation revealed how AI technology was being strategically deployed to address pressing urban challenges following the capital’s relocation. Mubarok demonstrated compelling real-world applications through Jakarta’s implementation of AI-powered solutions. A notable example showcased how video analytics and flood prediction systems were transforming urban security and disaster preparedness. The presentation showed tangible evidence of AI’s impact through innovations such as smart streetlamps and real-time air quality monitoring. Mr. Mubarok emphasized that the key challenge lay in balancing technological advancement with infrastructure limitations as cities continued to evolve. Looking ahead, he identified that successful AI integration would depend on strengthening public-private partnerships and developing local talent pools. He concluded that the critical opportunity would be to leverage these smart city initiatives to create an inclusive and sustainable urban environment, serving as a model for other developing cities.
Summary and wrap-up
Ms. Ayumi Fujii, a master’s student from GraSPP, and Mr. Muhammad Aliy Abdulloh, a doctoral student in economics from the Department of Economics at FEBUI, summarized the day’s discussion. Two graduate students, Mr. Tanawat Papaeng and Ms. Rachel Ho from GraSPP, joined Ms. Fujii in assisting with logistics and participating in discussions.
Three representatives from the host organizations, Dr. Riznaldi Akbar from ADBI, Prof. Toshiro Nishizawa from GraSPP, and Dr. Jahen F. Rezki, Vice Director of Research at LPEM FEBUI, shared their takeaways from the Forum discussions.
Concluding remarks
Prof. Toshiro Nishizawa from the GraSPP appreciated the participants and organizing committee members at the LPEM FEBUI for their dedication and professional work. He expressed his hope that the Indonesia-Japan Policy Research Forum for Asia would continue to contribute to intellectual exchanges involving academics, policymakers, and practitioners, addressing the challenges facing Asia with the support of TIFO.
About the Forum
The Indonesia-Japan Policy Research Forum for Asia is a collaboration between the Asian Development Bank Institute (ADBI), the Institute for Economic and Social Research, the Faculty of Economics and Business, the University of Indonesia (LPEM FEBUI), and the University of Tokyo’s Graduate School of Public Policy (GraSPP) with the support of the Toshiba International Foundation (TIFO), a public interest incorporated foundation. The Forum’s original format was a bilateral intellectual exchange between LPEM and its counterpart in Japan, which started in 2004. Since 2014, GraSPP has served as a counterpart to LPEM, and ADBI joined in 2017, making the Forum a tripartite entity.
History of GraSPP’s collaborative intellectual exchanges in Indonesia
| 2025 | Indonesia-Japan Policy Research Forum for Asia “Exploring Artificial Intelligence Potential in Achieving Sustainable Development in Asia” jointly organized with LPEM FEB UI and ADBI on February 18, 2025, in Jakarta, Indonesia, funded by TIFO |
| 2024 |
Indonesia-Japan Policy Research Forum for Asia “Sustainable Finance for Green and Blue Development in Asia” jointly organized with LPEM FEBUI and ADBI on March 5, 2024, in Jakarta, Indonesia, funded by TIFO https://www.pp.u-tokyo.ac.jp/en/news/summary-indonesia-japan-policy-research-forum-for-asia/ |
| 2023 |
Indonesia-Japan Policy Research Forum for Asia “Impact investing for a transition towards a zero-carbon society in Asia” jointly organized with LPEM FEBUI and ADBI on February 23, 2023, in Jakarta, Indonesia, funded by TIFO |
| 2022 |
Indonesia-Japan Policy Research Forum for Asia “Enhancing MSMEs’ innovation and competitiveness: the role of finance and digital technology” jointly organized with LPEM FEBUI and ADBI on February 23-24, 2022, online, funded by TIFO |
| 2021 |
Indonesia-Japan Policy Research Forum for Asia “Infrastructure, technology, and finance for sustainable and inclusive development in Asia beyond the pandemic” jointly organized with LPEM FEBUI and ADBI on February 18-19, 2021, online, funded by TIFO |
| 2019 |
Indonesia-Japan Policy Research Forum for Asia “Financial and technological literacy for sustainable and inclusive development in Asia” jointly organized with LPEM FEBUI and ADBI on November 7-8, 2019, in Jakarta, Indonesia, funded by TIFO |
| 2018 |
Indonesia-Japan Policy Research Forum “The role of fintech in inclusive growth in ASEAN economies” jointly organized with LPEM FEBUI and ADBI on November 7-8, 2018, in Jakarta, Indonesia, funded by TIFO |
| 2017 |
“Innovative approaches to SME and entrepreneurial financing for enhanced competitiveness” jointly organized with LPEM FEBUI and ADBI on November 8-9, 2017, in Jakarta, Indonesia, funded by TIFO |
| 2016 |
Emerging Researchers Forum between Indonesia and Japan “Partnership opportunities for enhancing human capital, innovation and competitiveness—financial inclusion and SME development” jointly organized with LPEM FEBUI on November 23, 2016, in Jakarta, Indonesia, funded by TIFO |
| 2015 |
Emerging Researchers Forum between Indonesia and Japan “Partnership opportunities for enhancing human capital, innovation, and competitiveness” jointly organized with LPEM FEBUI on December 2, 2015, in Jakarta, Indonesia, funded by TIFO |
| 2015 |
Special session at LPEM’s International Conference on Economics and Finance in Indonesia on December 1, 2015, in Jakarta, Indonesia, funded by TIFO |
| 2014 |
TIFO 25th Anniversary Symposium in ASEAN “FDI for the future: human capital, innovation, and competitiveness” jointly organized with LPEM FEBUI on November 24, 2014, in Jakarta, Indonesia, funded by TIFO |
| 2014 |
LEPM FEUI-GraSPP Seminar “Human capital investment and labor productivity in Indonesia: facts and challenges in a global world” jointly organized with LPEM FEBUI on February 11, 2014, in Jakarta, Indonesia. |
