TEMPO.CO, Jakarta - International Business Machines (IBM) notes that the adoption of Artificial Intelligence (AI) in Indonesia's manufacturing sector has shown positive developments over the past 3-5 years. However, most companies are still in the early stages of strategic integration.
General Manager and Technology Leader IBM ASEAN Catherine Lian stated that IBM's study titled "Unlocking Indonesia's Economic Potential for Future Prosperity" found that 77 percent of business leaders in Indonesia see AI and digital transformation as the main growth opportunity. In recent years, many manufacturing players have moved beyond the initial experimental phase and started running AI pilot projects. "However, only a few have successfully achieved full integration or integrated AI into their core business strategies," said Catherine to Tempo in early December 2025.
Another IBM research indicates that many manufacturing companies, as well as the energy and utilities sectors in the Asia Pacific region, have invested in digital devices, particularly in design and supply chains. However, they still need a stronger AI-based digital foundation to create optimal value.
"Our region (Southeast Asia) is at the forefront of the AI-driven Industry 4.0 transformation," Catherine said. She added that in Indonesia, AI adoption is becoming more strategic with the presence of national initiatives such as the Making Indonesia 4.0 roadmap, the launch of the AI Center of Excellence, and the upcoming National AI Roadmap.
The report "APAC AI-Driven Industry 4.0" notes that only 11 percent of manufacturing organizations in the Asia Pacific, including Indonesia, are at a higher level of AI maturity-although 85 percent claim to be data-driven or AI-first organizations. This gap has the potential to hinder transformation if investments do not align with actual readiness.
Catherine identified several main obstacles, from the misalignment of the Industry 4.0 strategy, limited human resource development, to separate AI execution across departments. Other barriers involve the modernization of core systems, which are considered slow, marked by low adoption of predictive maintenance and real-time supply chain visibility.
Indonesia, on the other hand, is seen as a key player in the AI-driven manufacturing landscape in Southeast Asia. The IBM-KORIKA study in 2024 showed that 62 percent of organizations in Indonesia are running AI pilot projects. Corporations focus on inventory management, demand forecasting, and data processing in the manufacturing sector. "These efforts indicate Indonesia's readiness to enhance adoption and strengthen its competitiveness in the global manufacturing arena," said Catherine.
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