Indonesia AI spending outpaces business transformation

Companies risk weaker returns when technology spending outpaces workforce readiness, governance, and operating-model changes.

Indonesian companies are increasing investment in artificial intelligence, but skills, governance and change-management gaps are limiting how much business value they can extract from that spending.

R. Robby, Partner for Digital Data & Analytics Consulting at PT Ernst & Young Indonesia, said technology programmes often struggle because companies start with platforms rather than clearly defining the business problem and desired outcome.

“Organisations that get the real value are the ones who treat this as a business transformation first, with technology as enabler,” Robby said.

That gap becomes more pronounced as AI adoption accelerates. Robby identified unclear accountability as a major governance risk, particularly when automated decisions move faster than existing oversight structures.

Businesses need clear ownership for AI use cases, human oversight, and greater transparency over where AI is being used, he said. Without those controls, governance failures can affect customer and regulatory trust.

Change management is another weak point. Robby said companies are investing heavily in technology but often spend less on training, workflow redesign and the human side of adoption.

When asked whether businesses are investing sufficiently in change management, Robby said they are “Unfortunately, not enough.”

For Indonesia’s next phase of digital growth, Robby said consistency and trust will also matter. That includes more predictable regulation, stronger infrastructure beyond Java, and continued investment in local talent.

He pointed to digital infrastructure and data-centre growth in areas such as Sumatra and the Malacca Strait as signs of expansion outside the country’s traditional technology centres.

The broader lesson for executives is to avoid deploying AI simply because the technology is available. Robby said companies should first identify the business problem, redesign operating models, and build the workforce and governance needed to support implementation.

Robby is also a judge for the Indonesia Technology Excellence Awards 2026, which will be held on 8 October 2026 at The Westin Jakarta.