Indonesia's manpower minister says AI could lift productivity by up to 40%

Manpower Minister Yassierli outlined a human-centred approach to AI in Indonesian workplaces, arguing that reworking standard operating procedures and providing employee training could boost output by 30 to 40 percent. He warned that AI does not automatically mean large-scale layoffs, and that technology can generate new business opportunities and skill demands. According to him, sectors with high AI usage already enjoy faster productivity growth, while using AI merely as a digital aide yields only about a 5 percent increase.

A Boston Consulting Group survey of 1,250 firms found 60 percent of AI leaders have not yet seen significant returns, often because of flawed strategies. To address this, the Manpower Ministry is running an AI-based productivity pilot, drafting a formal implementation guide, and creating a platform for companies to share best practices, all while ensuring worker involvement and human oversight.