Indonesia Generative AI Market

Indonesia Generative AI Market Overview:

The Indonesia generative AI market size reached USD 175.32 Million in 2024. Looking forward, the market is expected to reach USD 975.97 Million by 2033, exhibiting a growth rate (CAGR) of 18.73% during 2025-2033. The market is driven by strong government-backed digital transformation programs, including national AI strategies supporting industrial and public sector applications. Expanding e-commerce and creative industries are adopting generative AI to streamline content generation and personalized marketing. Concurrently, strategic investments in AI infrastructure and digital talent development are fostering innovations and ethical deployment, further augmenting the Indonesia generative AI market share.

Indonesia Generative AI Market Trends:

Expanding Digital Ecosystem and Government Vision

Indonesia’s rapidly evolving digital ecosystem provides a strong foundation for generative AI adoption across industries. The government's “Making Indonesia 4.0” roadmap highlights digital transformation, emphasizing AI-driven innovation in key sectors such as manufacturing, healthcare, and public administration. As Southeast Asia’s largest internet economy, Indonesia is fostering collaboration between technology startups, educational institutions, and multinational corporations to develop localized generative AI solutions. These applications are streamlining customer engagement, automating creative content generation, and improving supply chain optimization. The increasing digitization of services and processes across government and enterprise sectors is contributing to stronger AI integration. In Indonesia, 57% of CEOs expect generative AI to enhance stakeholder trust, and 56% believe it will improve product or service quality. 70% foresee AI driving competitiveness, business model shifts, and new skill demands over the next three years. Notably, 93% of Indonesian CEOs have already made changes to their business models in response to AI and digital transformation. Moreover, supportive policy initiatives, such as the establishment of AI research centers and regulatory frameworks, further enable safe and structured development of generative AI tools. Indonesia’s growing pool of digital talent, bolstered by both domestic educational programs and international partnerships, is playing a pivotal role in enabling advanced AI applications. These trends collectively establish a favorable environment for Indonesia generative AI market growth, strengthening the nation’s digital economy.

Strategic Investments in AI Infrastructure and Talent Development

Significant investments in AI infrastructure and skills development are further supporting the adoption of generative AI solutions in Indonesia. The Indonesian government, alongside international partners, is establishing AI innovation hubs, supercomputing facilities, and research centers dedicated to advancing machine learning capabilities. These efforts are complemented by the growth of private sector investment in AI startups and enterprise solutions. For instance, on December 9, 2024, Kyndryl announced that Barito Renewables, Indonesia’s largest geothermal energy producer, is migrating to Microsoft Azure Cloud to accelerate its generative AI transformation and reduce IT costs. Through its subsidiary, Star Energy Geothermal, Barito Renewables operates geothermal power plants with a total capacity of 886 MW, along with the 75 MW Sidrap wind power plant in South Sulawesi. By embedding generative AI into its IT operations, Barito aims to drive innovation, efficiency, and sustainability in Indonesia’s clean energy sector. Also, Indonesia’s leading universities are introducing specialized AI curricula and research programs, equipping students with the technical expertise required to develop and deploy advanced generative models. Public-private partnerships are playing an essential role in closing the digital skills gap, creating job opportunities, and encouraging entrepreneurship within the AI sector. Moreover, ethical frameworks for responsible AI use are being shaped by academic institutions and regulatory bodies to ensure transparent and accountable deployment. This strategic focus on both infrastructure and human capital positions Indonesia as a key player in Southeast Asia’s AI landscape, providing momentum for widespread generative AI adoption across industries.

Indonesia Generative AI Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on offering type, technology type, and application.

Offering Type Insights:

• Image
• Video
• Speech
• Others

The report has provided a detailed breakup and analysis of the market based on the offering type. This includes image, video, speech, and others.

Technology Type Insights:

• Autoencoders
• Generative Adversarial Networks
• Others

The report has provided a detailed breakup and analysis of the market based on the technology type. This includes autoencoders, generative adversarial networks, and others.

Application Insights:

• Healthcare
• Generative Intelligence
• Media and Entertainment
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes healthcare, generative intelligence, media and entertainment, and others.

Regional Insights:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The report has also provided a comprehensive analysis of all major regional markets. This includes Java, Sumatra, Kalimantan, Sulawesi, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Indonesia Generative AI Market News:

• On September 17, 2024, Indosat Ooredoo Hutchison, through its subsidiary Lintasarta, partnered with Accenture to accelerate Indonesia’s first sovereign AI cloud platform using the Accenture AI Refinery™. The collaboration initially targets Indonesia’s financial services sector, providing modular, AI-driven solutions to enhance profitability and efficiency while ensuring that sensitive data stays within national borders. This initiative is a significant milestone for the Indonesia generative AI market, promoting AI sovereignty and fostering sustainable digital transformation in key economic sectors.
• On June 16, 2025, Netcore Cloud announced the expansion of its Indonesia operations with a new local data center and strengthened on-ground teams, aiming to support BFSI, retail, and ecommerce sectors. With 100+ customers and partnerships with brands like INDODAX, Danone Indonesia, and Domino’s Indonesia, Netcore’s AI-powered marketing solutions, backed by Google Cloud’s generative AI capabilities, will enhance customer engagement and operational efficiency.

Indonesia Generative AI Market Report Coverage:

Key Questions Answered in This Report:

• How has the Indonesia generative AI market performed so far and how will it perform in the coming years?
• What is the breakup of the Indonesia generative AI market on the basis of offering type?
• What is the breakup of the Indonesia generative AI market on the basis of technology type?
• What is the breakup of the Indonesia generative AI market on the basis of application?
• What is the breakup of the Indonesia generative AI market on the basis of region?
• What are the various stages in the value chain of the Indonesia generative AI market? 
• What are the key driving factors and challenges in the Indonesia generative AI market?
• What is the structure of the Indonesia generative AI market and who are the key players?
• What is the degree of competition in the Indonesia generative AI market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Indonesia generative AI market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Indonesia generative AI market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Indonesia generative AI industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.