Indonesia calls for inclusive AI standards to protect developing MSMEs

Indonesia has called for the establishment of inclusive global artificial intelligence (AI) standards aimed at protecting micro, small, and medium enterprises (MSMEs) in developing nations. This proposal came during the 2nd G20 Sherpa Meeting hosted by the United States presidency in Washington, DC. The initiative was presented by Edi Prio Pambudi, Deputy for Coordination of Economic Cooperation and Investment at the Coordinating Ministry for Economic Affairs. His remarks emphasized the need for AI governance frameworks that avoid creating additional compliance burdens for MSMEs in developing economies. Pambudi highlighted that Indonesia believes global AI standards must be formulated inclusively, taking into account both the interests of developed and developing countries. He argued that developing nations should play an active role in shaping these standards rather than being passive recipients of rules set by others. This perspective reflects broader concerns about ensuring equitable access to emerging technologies without exacerbating existing economic disparities. During the meeting, Indonesia pushed for the practical implementation of the G20 Roadmap for Cross-border Payments, focusing on the interconnection of QR code-based payment systems across different countries. This effort aims to lower transaction costs and alleviate financial pressures on migrant workers and MSMEs. Additionally, Indonesia expressed growing concerns regarding the rising losses caused by cross-border cryptocurrency investment fraud, often associated with pig-butchering networks. To address this issue, the country advocated for enhanced international collaboration in law enforcement and greater awareness campaigns targeting vulnerable groups such as the elderly and individuals new to digital platforms. Another significant point raised by Indonesia was the prohibition of using stolen or pirated content to train AI models. However, Pambudi underscored the importance of maintaining respect for national data protection laws to prevent the unauthorized collection of sensitive public information. These considerations reflect Indonesia's commitment to balancing innovation with privacy and security concerns. The Indonesian government is currently working on finalizing its National AI Roadmap, which includes ethical guidelines for AI applications in critical sectors such as healthcare, education, finance, and the creative economy. In parallel, the government is promoting the diversification of AI infrastructure to ensure that developing countries are not limited to providing data while consuming technology. This strategy involves fostering stronger public-private partnerships in data center investments and expanding cloud computing capabilities to support local technological growth. Indonesia’s approach aligns with its broader vision of achieving a fair and inclusive global digital economy. By advocating for a more balanced participation in setting international AI standards, Indonesia aims to empower developing countries to shape the future of technology rather than simply adapting to externally imposed norms. This stance is part of a larger diplomatic effort to strengthen regional cooperation, including invitations extended to ASEAN members and South Korea to collaborate on initiatives aimed at empowering MSMEs. Efforts to enhance MSME resilience extend beyond policy discussions. Institutions such as Unibraw are actively developing digital solutions, including a halal certification system tailored for MSMEs. Such innovations highlight the potential for local institutions to contribute meaningfully to the global discourse on AI and digital inclusion. As Indonesia continues to refine its strategies, the focus remains on ensuring that the benefits of technological advancement are equitably distributed, allowing developing economies to thrive alongside their more advanced counterparts.