Assistant Dean (Digital Operations), Dr Tan Hong Ming (fifth from right), with Mr Jai Arya, Senior Adviser, NUS Business School (fourth from right), and alumnus Mr David Suwarto (Bachelor of Business Administration ’09) (fifth from left) with Indonesian journalists in Jakarta.
Jakarta, 18 August 2026 – As Indonesia accelerates ambitions to become a globally competitive, high-income economy under the Golden Indonesia Vision 2045, its greatest artificial intelligence (AI) opportunity lies not in deploying more technology, but in “human dividend” – a workforce equipped with skills, judgement and organisational support to turn AI into productivity, innovation and economic value.
This was the key message shared by Dr Tan Hong Ming, Assistant Dean (Digital Operations) at the NUS Business School, during a media roundtable in Jakarta. He said that while Indonesia’s demographic dividend has long been seen as one of its greatest strengths, AI is shifting the focus of the workforce to its capabilities.
“For decades the advantage was measured in the size of the workforce. AI changes that equation. A single employee equipped with AI can often accomplish significantly more than before. As a result, productivity is increasingly determined by workforce capability rather than workforce size. The technology already exists. The real question for every organisation is whether its people are ready to create value from it.”
AI success depends on people, not technology
Home to more than 280 million people, Indonesia is the largest economy in Southeast Asia and well positioned to become one of Asia’s leading AI-enabled economies. Its digital economy achieved almost US$100 billion in gross merchandise value in 2025, making it the region’s largest digital market. At the same time, the country is home to approximately 65 million micro, small and medium-sized enterprises (MSMEs), which contribute around 60 per cent of Indonesia’s GDP and employ 97 per cent of the national workforce, creating significant opportunities for AI-driven productivity and innovation.
“Much of today’s discussion focuses on whether AI will replace jobs. I think that’s the wrong question. The goal of AI should not be merely automation. It should be augmentation. AI should enable people to solve bigger problems, make better decisions and create new forms of value. Organisations that use AI primarily to automate work may reduce costs in the short term. Organisations that use AI to augment people will create far greater long-term value,” said Dr Tan
Rather than viewing AI as a replacement for people, Dr Tan believes organisations should redesign work so that AI augments human judgement, expands human capability, and enables employees to achieve more than was previously possible, while people remain accountable for important decisions.
Yet building human dividend is not straightforward. While AI adoption is accelerating across Indonesia’s manufacturing, financial services, healthcare, logistics and consumer sectors, many organisations continue to face challenges in scaling AI successfully. Talent shortages, uneven digital infrastructure and varying levels of AI readiness remain barriers, particularly among smaller businesses.
Dr Tan added that human dividend requires three investments for growth. “First, organisations need AI literacy, so people understand how to use these tools effectively. Second, leaders need the capability to redesign work, so AI augments people rather than simply automate tasks. The goal is to enable people to achieve outcomes that were previously difficult or impossible. Third, organisations need a culture of continuous learning because AI will continue to evolve,” he explained.
Building an AI-ready workforce for Indonesia
Indonesia already possesses unique strengths that position it well to realise its human dividend. According to Microsoft’s 2026 Work Trend Index, 33 per cent of Indonesian professionals are already classified as advanced AI users, more than double the global average of 16 per cent. Combined with internet penetration of around 81 per cent and a vibrant entrepreneurial ecosystem, these strengths provide a strong foundation for expanding AI adoption across its economy.
Building on Dr Tan’s observations, Professor Teo Chung Piaw, Dean of NUS Business School believes the next challenge is ensuring that AI adoption and workforce development happen together.
Prof Teo said, “Every AI project should have a workforce development plan alongside its technology implementation plan. Companies should not think about AI adoption and talent development as separate initiatives. They must happen together.”
He also challenged the perception that Indonesia’s MSMEs are simply consumers of AI, highlighting that they could become one of the country’s biggest AI success stories.
“MSMEs are agile. They can experiment quickly, adapt faster than large organisations and use AI to serve more customers without proportionately increasing costs. AI gives smaller businesses the opportunity to do more with less.”
Advancing Indonesia’s AI ambitions through leadership and collaboration
Beyond improving business productivity, Prof Teo shared that AI should also help Indonesia address broader national priorities. Under the Golden Indonesia Vision 2045 and National AI Strategy, AI is expected to contribute to solving challenges in healthcare, education, food security, financial inclusion and public services.
To realise these ambitions, he believes stronger collaboration between academia, industry and government will be essential.
“Business schools have a responsibility beyond producing graduates. We need to help develop leaders who understand how to integrate AI into business strategy, lead organisational transformation and translate research into practical solutions that create real economic and social impact.”
As Asia’s top business school, NUS Business School works closely with businesses and policymakers across the region through research, executive education and industry partnerships that help organisations navigate digital transformation and develop future-ready leadership capabilities.
The School’s engagement in Jakarta this week extends well beyond the roundtable. Fifty-five participants from its Executive MBA cohort, representing at least 15 nationalities and more than 15 industries, are in Jakarta for the overseas learning segment. At the same time, current Executive MBA students and NUS Business School alumni are also gathering in Jakarta for the inaugural Alumni Founders Business Showcase, spotlighting ventures by founders based in Indonesia and Singapore.
Indonesian enrolment across the School’s programmes has remained consistent over the years, reflecting sustained interest among Indonesian professionals in building regional leadership capability. The MSc in Sustainable and Green Finance and MSc in Strategic Analysis and Innovation are popular options among Indonesian students, reflecting growing interest in deepening expertise at the intersection of finance and sustainability to support Indonesia’s ambitions in areas such as green investment, energy transition and sustainable growth.
Dr Tan said Indonesia’s journey should build on its own strengths and priorities as there’s no one-size-fits-all approach to AI adoption.
He believes the organisations that succeed will not necessarily be those with the most advanced AI systems, but those that invest most consistently in developing their people. Indonesia’s demographic dividend was inherited. Its human dividend will be built through continuous investment in skills, leadership and organisational capability.
“AI and technology will continue to evolve. Sustainable competitive advantage will come from continually redefining what people can achieve with AI. Indonesia’s greatest AI opportunity is to build its human dividend,” said Dr Tan.
For media enquiries, please contact:
Frank CHUA Assistant Senior Manager, Corporate Communications NUS Business School National University of Singapore Email: frank.c@nus.edu.sg
Rama ARAFAT Senior Associate APRW, Indonesia Email: ramadhani@aprw.asia
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