By Roffie Kurniawan ( August 7, 2026, 05:31 GMT | Insight) -- Indonesia's forthcoming artificial intelligence regulation will focus on the growing risks posed by increasingly autonomous AI systems, while continuing to promote AI as a driver of domestic industrial development. Officials said the framework will require human oversight and risk-based obligations for higher-risk AI applications as the government seeks to build domestic capabilities in AI infrastructure, computing and digital talent.Indonesia's forthcoming artificial intelligence regulation will focus on the growing risks posed by autonomous systems while supporting the country's broader ambition to develop domestic AI capabilities, senior government officials said Thursday.Deputy Communications and Digital Affairs Minister Nezar Patria told a conference* the upcoming Presidential Regulation on the National AI Roadmap and AI Ethics is being designed around two core regulatory principles: human-centered AI and risk-based regulation.The framework reflects growing concern about the risks posed by increasingly autonomous agentic AI systems capable of initiating transactions and interacting with external systems with limited human intervention."When AI stops merely answering and starts taking action, how do we hold it accountable when those actions go wrong?" he said.Nezar said the shift from generative AI to increasingly autonomous systems fundamentally changes the nature of regulatory risk. Earlier generations of AI primarily generated text, images or recommendations that remained subject to human review before implementation. Agentic AI, by contrast, increasingly performs actions directly, creating real-world consequences when systems malfunction."Once an agent acts, a mistake is no longer a typo you can edit. It's a real-world consequence that has already happened," he said.Nezar said the planned regulation will require AI to augment rather than replace human judgment, particularly in high-impact decisions.Under the proposed framework, AI systems affecting the public will be expected to incorporate meaningful human oversight, while algorithms will need to be explainable and auditable. The government also intends to require developers to consider Indonesia's social and cultural context when deploying AI systems."Human-centered AI stands as our unwavering commitment to retain ultimate accountability," he said.The second pillar adopts a risk-based regulatory approach with obligations that vary according to the level of risk posed by AI systems. According to Nezar, high-risk AI applications will be subject to risk assessments from the design stage onward, together with transparency obligations including model disclosures, notification to users and labeling of AI-generated content. Additional safeguards are being prepared for sectors such as healthcare and financial services."One-size-fits-all regulation crushes innovation for low-risk AI while failing to provide enough safeguards for high-risk systems," he said.Nezar said the framework reflects a broader shift in AI governance from regulating AI-generated content to regulating autonomous decision-making."The real challenge is not just what AI can do, but how organizations define its limits."The upcoming presidential regulation is expected to serve as the initial framework for AI governance before the government drafts a comprehensive AI law that will be integrated into Indonesia's broader digital regulatory framework (see here).— Industrial strategy —Edwin Hidayat Abdullah, director general for digital ecosystem at the Ministry of Communication and Digital Affairs, said Indonesia increasingly wants AI to generate value within the domestic economy rather than simply expand the market for foreign technology providers."We do not want to become only a market. We want the value added from the use of technology to be created in Indonesia and for Indonesia," Edwin said at the same conference.The remarks mirror Indonesia's broader industrial policy of encouraging higher-value domestic production rather than serving primarily as a market for imported technologies. They also align with the government's emerging sovereign AI strategy. Last month, Deputy Minister Nezar Patria said Indonesia planned to develop a national AI ecosystem spanning local AI models, computing infrastructure, digital talent and critical minerals used in AI and semiconductor supply chains (see here)According to Edwin, AI should be evaluated not only by its ability to improve operational efficiency but also by its contribution to productivity, innovation and inclusive economic growth.With around 70 percent of Indonesia's population now of working age, he said digital transformation offers an opportunity to capitalize on the country's demographic dividend while supporting the government's target of achieving 8 percent annual economic growth.Rather than treating AI as a standalone technology initiative, Edwin said the government increasingly links AI development with investment in digital infrastructure, data centers, semiconductors, digital talent and other sectors capable of generating higher-value economic activity.The emphasis on value creation is also shaping the private sector’s AI-adoption decisions....
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