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    AI by country · South-East Asia

    AI in Indonesia: the rules, the readiness and where to start

    Last checked: 26 October 2026

    What should a company in Indonesia know before starting with AI?

    Indonesia has no dedicated AI law as of 26 October 2026. The rules that bite today come from the Personal Data Protection Law (Law No. 27 of 2022), which is in force, and a detailed implementing regulation that starts on 16 January 2027. The agency that will enforce the law has still not been set up, so check the current position before you build.

    At a glance

    Indonesia at a glance

    Key facts about Indonesia
    Data protection lawPersonal Data Protection Law, Law No. 27 of 2022. In force. Implementing Government Regulation No. 33 of 2026 starts 16 January 2027.
    RegulatorDedicated data protection agency not yet set up (status unclear as of 26 October 2026). Komdigi oversees in the meantime.
    AI policyNo dedicated AI law as of 26 October 2026. AI ethics circular (2023). Two AI presidential regulations awaiting signature as of 3 September 2026.
    Time zoneUTC+7 (WIB, Java and Sumatra), 1.5 hours ahead of India
    CurrencyIDR (rupiah)
    Business languageBahasa Indonesia

    Why now

    Why Indonesia is worth watching

    Each point links to the document it comes from.

    • The National AI Strategy (Stranas KA, 2020 to 2045) names health, bureaucratic reform, education and research, food security, and mobility and smart cities as priority areas.[8]

    • The APJII 2025 survey counted about 229 million internet users, a penetration of 80.66 percent.[10]

    • Komdigi says two presidential regulations are in their final stage: an AI roadmap for 2026 to 2029 and an AI ethics regulation. On 3 September 2026 it said only the President's signature was missing.[5]

    • In July 2026 the Ministry of Industry said it was facilitating an AI proof of concept in the pharmaceutical sector under Making Indonesia 4.0.[11]

    • OJK published an AI governance guideline for banks on 29 April 2025.[9]

    The rules

    The rules that matter for AI

    What each law or policy means when you build or buy an AI system.

    Personal Data Protection Law, Law No. 27 of 2022

    In force2022People may object to decisions made only by automated processing, including profiling, that have legal or significant effects (Article 10). Controllers must run an impact assessment for high-risk processing (Article 34) and give written notice of a data protection failure within 3 x 24 hours (Article 46). Cross-border transfers need a destination with equal or higher protection (Article 56). Administrative fines are capped at 2 percent of annual income or receipts tied to the violation (Article 57).[1]

    Government Regulation No. 33 of 2026 (implementing the PDP Law)

    Passed, not yet in force2026Enacted 16 July 2026, effective 16 January 2027. It has 225 articles. It says a data protection impact assessment must be done before processing starts, and its commentary names AI and machine learning as new technologies. Cross-border transfers depend on an adequacy list, safeguards or, in limited cases, explicit consent. Those lists need the new agency, which does not exist yet, so how they will work is unclear. This is based on law-firm summaries; I could not open the official text.[2]

    Komdigi Circular No. 9 of 2023 on AI Ethics

    In force2023A circular, not a statute. It asks AI businesses and electronic system operators to write internal AI policies around nine values, including transparency, accountability and personal data protection. It says AI should not be left to decide matters that affect people.[7]

    Draft presidential regulations on the AI roadmap and AI ethics

    Draft2026The ethics regulation is meant to sort AI uses into prohibited, strictly supervised and lower-risk. Ministries would issue detailed rules for their own sectors. Komdigi's deputy minister said the ethics regulation carries no sanctions. I found no report of signing after 3 September 2026, so status is unclear.[5]

    Where AI fits first

    Where AI fits first

    Banking and finance

    Reading loan and onboarding documents, and answering customer questions in Bahasa Indonesia.

    OJK's April 2025 guideline asks banks to use AI responsibly across its life cycle and to manage fraud and credit risks. The report I read calls it a guideline, so ask your compliance team whether it is mandatory for you.[9]

    Manufacturing

    Quality inspection, maintenance planning and production reporting.

    Making Indonesia 4.0 lists food and drink, textiles, automotive, chemicals, electronics, pharmaceuticals and medical devices as priority sectors. The ministry's July 2026 AI proof of concept covers pharmaceuticals.[11]

    Public services

    Sorting citizen requests and drafting replies in Bahasa Indonesia for a human to check.

    Bureaucratic reform is a Stranas KA priority. Public service processing is one of the cases where a data protection officer is required (Article 53).[8]

    Your first steps

    Your first steps

    1. List the personal data you hold, where it is stored and which AI tools or foreign servers it reaches.
    2. Write down the legal basis for each use of that data before the 16 January 2027 start of Government Regulation 33/2026.
    3. Do an impact assessment before any AI system that profiles people or decides on credit, jobs or access to services.
    4. Prepare a breach plan that can produce written notice within 3 x 24 hours.
    5. Before you send data to an overseas AI service, check the destination's protection level and your contract terms.
    6. Keep a person in the loop for decisions that affect individuals, in line with the 2023 ethics circular.
    7. Check for guidance from your sector regulator, such as OJK, and watch for the AI presidential regulations.

    How we work with you

    How we work with you

    We work remotely with clients worldwide, in the client's time zone. Indonesia's WIB is 1.5 hours ahead of India. If both sides work 9:00 to 18:00 local time, the shared window is 10:30 to 18:00 WIB, which is 9:00 to 16:30 IST, about 7.5 hours a day.

    Questions

    Common questions about AI in Indonesia

    Does Indonesia have an AI law?

    Not as of 26 October 2026. Two presidential regulations, one on an AI roadmap and one on AI ethics, were reported on 3 September 2026 as waiting for the President's signature. I found no later report, so status is unclear. The data protection law already applies to AI that uses personal data.

    Is the PDP Law being enforced?

    The law is in force and its two-year transition ended in October 2024. The dedicated agency was not set up in the latest sources I read, and Komdigi said in February 2026 it would keep overseeing the law until then. Government Regulation 33/2026 adds detail from 16 January 2027.

    Can we use an AI service hosted outside Indonesia?

    The law requires the receiving country to give equal or higher protection. Government Regulation 33/2026 sets out the routes: an adequacy list, safeguards or limited explicit consent. The adequacy list depends on the agency, so ask a local lawyer how to document the transfer today.

    What are the penalties?

    Administrative fines can reach 2 percent of annual income or receipts tied to the violation (Article 57 of the PDP Law).

    Must a bank follow the OJK AI guideline?

    OJK launched it as a guideline for the banking sector on 29 April 2025. I could not open OJK's own document, and the press report does not say whether it is binding. Ask the bank's compliance team or a local lawyer.

    Free tools

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    Read next

    Sources

    Sources

    Facts checked on 26 October 2026. Numbers in square brackets above match this list.
    1. [1] Republic of Indonesia (text transcribed on Wikisource), 2022-10-17. Undang-Undang Republik Indonesia Nomor 27 Tahun 2022 tentang Pelindunga…(id.wikisource.org)
      Full title and what we used it for

      Undang-Undang Republik Indonesia Nomor 27 Tahun 2022 tentang Pelindungan Data Pribadi. Law text for Articles 10, 34, 46, 53, 56, 57, 74 and the signing date. This is a transcription of the official text; the BPK site returned 403 and the Kemenkeu PDF refused the connection, so I could not check against the official PDF.

    2. [2] HLC (law firm), 2026-08-31. Indonesia's Personal Data Protection Law Implementing Regulation Arrive…(hlc.com)
      Full title and what we used it for

      Indonesia's Personal Data Protection Law Implementing Regulation Arrives Quietly. Law-firm summary of Government Regulation 33/2026: dates, impact assessment, cross-border routes, agency not yet in place. Interpretation only; the official text was not opened.

    3. [3] RSM Indonesia (advisory firm), 2026-09-18. Client Alert, 18 September 2026(rsm.global)
      Full title and what we used it for

      Client Alert, 18 September 2026. Cross-check of enactment date 16 July 2026 and effective date 16 January 2027. Interpretation only.

    4. [4] ANTARA News Agency, 2026-02-04. Indonesia to establish independent personal data protection agency(en.antaranews.com)
      Full title and what we used it for

      Indonesia to establish independent personal data protection agency. Komdigi officials on the draft regulation to create the data protection agency, and Komdigi overseeing until then.

    5. [5] Selular.ID, 2026-09-04. Dua Perpres AI Tunggu Tanda Tangan Presiden Prabowo(selular.id)
      Full title and what we used it for

      Dua Perpres AI Tunggu Tanda Tangan Presiden Prabowo. Komdigi's Director General for Digital Ecosystem on 3 September 2026 that both AI presidential regulations await signature. News report of an official statement.

    6. [6] CNN Indonesia, 2026-07-17. Pemerintah Siapkan Perpres hingga Etika AI(cnnindonesia.com)
      Full title and what we used it for

      Pemerintah Siapkan Perpres hingga Etika AI. Cross-check that the roadmap covers 2026 to 2029 and the ethics regulation was in its final stage in July 2026.

    7. [7] Komdigi JDIH (Ministry of Communication and Digital), 2023-12-19. Surat Edaran Menteri Komunikasi dan Informatika Nomor 9 Tahun 2023 tent…(jdih.komdigi.go.id)
      Full title and what we used it for

      Surat Edaran Menteri Komunikasi dan Informatika Nomor 9 Tahun 2023 tentang Etika Kecerdasan Artifisial. Primary source for the AI ethics circular: addressees, nine values and responsibilities.

    8. [8] OECD.AI Policy Navigator, 2025-12-01. Indonesia National AI Strategy (Stranas KA)(oecd.ai)
      Full title and what we used it for

      Indonesia National AI Strategy (Stranas KA). Strategy period 2020 to 2045, focus areas and priority sectors. Secondary listing; the strategy document itself was not opened. The date is the month the listing says it was last updated.

    9. [9] CNBC Indonesia, 2025-04-29. Bank Bisa Pakai AI, Begini Aturan Mainnya dari OJK(cnbcindonesia.com)
      Full title and what we used it for

      Bank Bisa Pakai AI, Begini Aturan Mainnya dari OJK. OJK's launch of the banking AI governance guideline. ojk.go.id refused connections, so I relied on this news report.

    10. [10] Selular.ID (reporting the APJII survey), 2025-08-17. APJII: Penetrasi Internet Indonesia Capai 80,66% di 2025(selular.id)
      Full title and what we used it for

      APJII: Penetrasi Internet Indonesia Capai 80,66% di 2025. Internet users and penetration. Industry association survey, reported by a news site; Bisnis.com returned 403.

    11. [11] Good News From Indonesia (syndicating Babel Aktual), 2026-07-22. Percepat Transformasi Digital, Kemenperin Fasilitasi Uji Coba Teknologi…(goodnewsfromindonesia.id)
      Full title and what we used it for

      Percepat Transformasi Digital, Kemenperin Fasilitasi Uji Coba Teknologi AI. Ministry of Industry statement of 20 July 2026 on the pharmaceutical AI proof of concept.

    This is general information, not legal advice. Laws and agencies in Indonesia are changing fast, and some of the sources above are news reports or law-firm summaries, not the official text. Check with a qualified Indonesian lawyer before you rely on any point. Facts were checked on 26 October 2026.

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