Indonesia is looking at a presidential regulation that would integrate artificial intelligence into the country’s major government programs, including its $15 billion free nutritious meals scheme, according to Reuters.

The regulation, which awaits President Prabowo Subianto’s signature, sets out an adoption roadmap spanning the years 2026 to 2029 for ministries and regional governments. Officials project that the intensifying AI push could add 12% to Indonesia’s GDP, equal to about $366 billion, by the end of the decade.

AI and Indonesia’s free meals initiative

The free meals initiative, known locally as MBG, feeds tens of millions of children daily and targets malnutrition and stunting, which affects about 20% of Indonesian children.

Under the newly drafted regulation, AI would take on several functions within MBG which will include the designing of menus tailored to regional nutrition needs and tracking kitchen hygiene. AI will also help with looking into potential food demand in the short term, in addition to finding any spending irregularities. Health data would also be fed into early-warning systems for emergencies.

The MBG program has faced serious governance problems since its inception. Earlier this month, the head of the effort was fired and arrested for multiple misdemeanors. Tens of thousands of children suffered food poisoning last year, and critics have flagged irregularities in the kitchen setups and safety standards. Budget concerns have also mounted as Indonesia navigates its limited financial capacity.

Tech giants help to draft AI regulation

Meta Platforms, IBM and Microsoft all contributed to the formation of the draft, according to Wahyudi Djafar, a tech analyst who co-authored parts of the regulation and sits on the Indonesian government’s AI task force, as reported by Reuters.

Microsoft committed $1.7 billion in 2024 to expand cloud and AI infrastructure in the Asian country. Officials have also projected that AI monitoring of social aid programs alone could save between $10 billion and $15 billion.

The draft also proposes a “sovereign AI fund” managed primarily through Danantara Indonesia, the country’s new wealth fund to assist in bankrolling the intended effort. Fiscal incentives for AI researchers and measures to address talent shortages are also included.

Skeptics question Indonesia’s readiness

Indonesia trails regional neighbors Singapore and Malaysia, both of which have attracted billions in investment from global tech firms building AI and cloud infrastructure.

Derwin Suhartono, a professor of Artificial Intelligence at Bina Nusantara University in Jakarta, told Reuters that Indonesia is yet to become a competitor of note in the AI race and “may stay as a consumer of products that foreign companies sell to.” He acknowledged that a structured roadmap to getting to such levels could help, but claims the execution so far has been “all rhetoric.”

The Digital Watch Observatory noted that significant infrastructure gaps, limited digital skills and uneven technological capacity could all hinder implementation. A companion draft regulation would also require government bodies to report AI-related risks, including misuse of biometric data, intellectual property violations and deepfakes.

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