A new wave of government-backed incentives and global partnerships is positioning Indonesia as Southeast Asia’s next AI-driven logistics powerhouse.
Indonesia is fast positioning itself as Southeast Asia’s next hotspot for AI-driven logistics and supply chain innovation, fuelled by government incentives, global partnerships, and an ambitious national strategy. At the same time, AI is set to become a major economic engine, with projections estimating it could inject up to US$366 billion into Indonesia’s GDP by 2030.
AI is steadily becoming a key driver of economic growth in Indonesia, particularly in sectors such as manufacturing and logistics, where automation is enhancing efficiency and productivity.
AI adoption across the country is projected to grow by 30% by 2025, further boosting the digital economy’s contribution to overall development. While AI is regarded as a central pillar of Indonesia’s digital transformation, the country remains in the early phases of large-scale implementation.
To ease operational burdens and fuel innovation, the Indonesian government offers substantial tax breaks and financial support to startups.
Young companies can benefit from a 50% reduction in corporate income tax during their early years, while significant “super deductions” of up to 300% for research and development and 200% for workforce training encourage deep investment in AI technologies and local talent development.
Special Economic Zones (SEZs) further sweeten the deal, providing businesses with full VAT and customs exemptions, extended tax holidays of up to 20 years, and the option for 100% foreign ownership.
These zones, coupled with long-term land usage rights of up to 95 years, have already attracted large-scale tech firms, including data centre operators, which enjoy zero corporate tax for up to a decade.
Beyond tax relief, microfinance programs like Kredit Usaha Rakyat (KUR) offer accessible funding for working capital and fixed investments, while startup incubators provide critical support in the form of seed funding, mentorship, infrastructure access, and technical guidance.
Recognizing that technology thrives on skilled talent, Indonesia is also investing heavily in human capital.
The government is expanding scholarships for students pursuing STEM degrees, supporting vocational training programs, and fostering public-private partnerships to accelerate expertise in AI.
One such initiative is the Google for Startups Accelerator Southeast Asia: Indonesia, AI-Focused program, which aims to support 100 AI-driven startups over five years with up to $350,000 in Google Cloud credits, access to AI technology, mentorship, and training workshops.
At the same time, Indonesia is working to attract global investment by streamlining regulations and increasing infrastructure investment in areas like data centres and supercomputers.
The country’s National AI Strategy, known as Stranas KA 2020–2045, lays out an ambitious roadmap to attract 5% of global AI investment flows and cultivate 450 AI-focused startups, positioning AI as a key pillar of Indonesia’s economic development.
Despite reports of a temporary slowdown in startup funding during the first half of 2025, the long-term vision remains firmly on track.
Already, several homegrown startups are putting Indonesia’s AI ambitions into action. Companies like Waresix are using AI to optimize pricing and delivery routes, while McEasy simplifies fleet management with real-time AI-powered scheduling and safety features.
Meanwhile, newcomers like AssetFindr are leveraging AI and IoT to track and manage assets across complex supply chains.
Together, these developments reflect Indonesia’s determination to become a regional leader in AI-driven logistics, transforming the efficiency of supply chains and creating new opportunities for startups, investors, and innovators across the region.
Indonesia is also actively building its AI talent pipeline through scholarships, vocational training, and strong partnerships between government, industry, and academia.
Indonesia is actively addressing its AI skills gap through a multi-layered approach focusing on education, training, and collaboration with countries in ASEAN. The government’s Digital Talent Scholarship (DTS) program aims to train 100,000 digital professionals in 2025 alone, covering high-demand areas such as AI, cybersecurity, data analytics, and cloud computing.
Alongside this, the national education curriculum is being updated to include digital literacy and AI ethics from early schooling stages. Strategic partnerships with global tech companies like Google, Microsoft, and Nvidia facilitate specialized training and certification programs. Initiatives such as the Google for Startups Accelerator support 100 AI-focused startups by providing funding, cloud credits, and mentorship.
