Indonesia Pushes AI-driven Digital Governance and Social Aid

Chair of the National Economic Council Luhut Binsar Pandjaitan said the government will use artificial intelligence to integrate data across ministries, narrowing the space for corruption and potentially saving up to Rp 1.5‑2,000 trillion in state spending. He cited the SIMBARA system for coal and nickel as an early example. KPK chief Setyo Budiyanto warned that digital tools alone cannot stop corrupt practices if human integrity is lacking.

Luhut also invited President Prabowo Subianto to monitor a pilot of the digital social‑assistance program (bansos digital) in July 2026 after it was tested in 42 regencies, including Banyuwangi. The plan is to expand the system nationwide by October 2026, covering 541 regencies and supplying accurate data for relief distribution.

In Mataram, Lombok, the rollout of the Perlinsos Digital system cut registration time from up to 200 days to about two minutes by linking the national ID (NIK) and facial‑verification technology and consolidating data from eight ministries. The pilot aims to reach 30 million citizens across 42 districts, with local officials supporting the shift toward transparent, rapid welfare delivery.

Luhut emphasized, “We are building an ecosystem where people are made unable or much less able to corrupt,” while Deputy for Digital Transformation Cahyono said, “45 % of bansos is still mistargeted; with Digital Public Infrastructure we will ensure no eligible citizen is missed.”