As global industries embrace automation, Indonesian companies are increasingly adopting technologies such as robotics and artificial intelligence (AI) to drive growth and remain competitive in the global economy.

Automation and AI present substantial opportunities for Indonesia to advance its industries and bolster economic growth. A 2025 World Economic Forum (WEF) survey found that 83% of businesses in Indonesia anticipate digitalization—a key component of automation—to impact their operations by 2030, compared to 60% globally. Industries such as manufacturing, renewable energy, and healthcare are set to benefit significantly from the adoption of automation technologies like robotics and smart systems.

Macrotrends driving business transformation  in Indonesia

Share of organizations surveyed that identified this trend as likely  to drive transformation in their organization  

Technology trends business transformation in Indonesia

Share of organizations surveyed that identified the technology as likely to drive transformation in their organization

Source: World Economic Forum Future of Jobs Report 2025

Key initiatives such as Making Indonesia 4.0 and Indonesia Digital Vision (VID) 2045 underscore the government’s focus on embracing advanced technologies to position the country as a leading global economy. These programs aim to integrate automation and AI across sectors to improve efficiency, enhance productivity, and unlock Indonesia’s potential as a digital powerhouse.

PwC’s 2023 CEO Survey Report reveals that 76% of CEOs in Indonesia have invested in automating processes and systems. The report indicates that a comprehensive digital business model will be crucial to facilitate the change.

Some Indonesian companies are already leading the way. For example, PT Astra Graphia Tbk. and PT Omron Manufacturing of Indonesia are at the forefront of adopting automation technologies, utilizing industrial robots and control systems to enhance production efficiency and product quality. Similarly, PT Selamat Sempurna Tbk. has integrated Programmable Logic Controller (PLC) and Internet of Things (IoT) technologies into their operations. Through collaborations with Folks Automation, the company has conducted training sessions focused on PLC-IoT integration, aiming to streamline manufacturing processes and improve operational efficiency. Meanwhile, Indosat Ooredoo Hutchison has adopted AI technologies to optimize operations and provide AI-driven solutions for small and medium-sized enterprises (SMEs). Partnerships with Nvidia and Google have enabled initiatives like Sahabat-AI, a large language model ecosystem supporting AI-based services in Bahasa Indonesia and other local languages.

Globally, the industrial automation market is projected to grow at a compound annual growth rate (CAGR) of 9%, reaching USD 265 billion by 2025, according to data from Statista. In Indonesia, while traditional industrial robotics has seen a slight decline, AI-integrated robotics and sensor technologies are forecasted to grow substantially, with AI robotics revenue expected to rise from USD 57.95 million in 2024 to USD 228.70 million by 2030, reflecting a CAGR of 25.71%.

The Flip Side of Automation

While the opportunities are immense, the shift towards automation also presents challenges. The Future of Jobs Report 2025 estimates that between 2025 and 2030, structural labor market changes caused by automation will create 170 million jobs (14% of today's total employment) while displacing 92 million jobs (8%), resulting in a net gain of 78 million jobs (7%). The transition underscores the urgent need for workforce reskilling and upskilling to meet the demands of new, technology-driven roles.

A key challenge is addressing the skills gap. The WEF estimates that 59% of the global workforce will require reskilling by 2030, with nearly 40% of future job skills being entirely new or significantly evolved. In Indonesia, skills involving AI and big data, as well as creative thinking and technological literacy will become increasingly emphasized by 2030, while Resilience and analytical thinking will not be seen to be as crucial.

Skill of increasing use by 2030 (Indonesia)

Share of companies surveyed identifying these skills to have the most increase in use by 2030

Source: World Economic Forum Future of Jobs Report 2025

Economic considerations pose another challenge. Small and medium-sized enterprises (SMEs), which make up a significant portion of Indonesia’s economy, may struggle with the high initial costs of adopting automation technologies. Furthermore, slow adoption rates and limited awareness about the benefits of automation could hinder progress in some industries.

Despite these challenges, Indonesia is proactively positioning itself to harness the benefits of automation and AI. By embracing government initiatives, fostering public-private partnerships, and investing in workforce development, the country aims to address obstacles and leverage opportunities in this transformative era. As Indonesia’s industrial landscape evolves, the integration of automation and AI will play a critical role in shaping its future.