Indonesia’s government aims to save more than US$84 billion through a large-scale transformation program in government technology, or GovTech.

The target was announced by Luhut Binsar Pandjaitan, Chairman of the Committee for Accelerating Digital Transformation.

He said the expected economic benefits would come from integrating public services, distributing social assistance more accurately and precisely, and simplifying government processes.

Digital transformation is one of Indonesian President Prabowo Subianto’s priority programs. He has begun building a digital government that draws on the capabilities of artificial intelligence.

Data from eight ministries and government agencies has already been integrated into a single system and is being processed using AI. Cybersecurity measures are also being strengthened with support from the National Cyber and Crypto Agency (BSSN).

Initially piloted in Banyuwangi, the project is now being implemented in 43 districts and cities. In some locations, particularly Surabaya, it is progressing faster than expected. The plan is therefore to expand it to hundreds of districts and cities before a nationwide rollout.

“We are not buying expensive software or importing it from abroad. Instead, we are integrating around 27,000 information systems already used by ministries and government agencies,” Luhut Binsar Pandjaitan said.

As well as improving the targeting of social assistance and the effectiveness of anti-corruption efforts, the initiative is intended to gradually raise Indonesia’s tax revenue ratio from approximately 9 percent to 11–13 percent. This is expected to bring the country closer to the levels of other ASEAN member states, the Association of Southeast Asian Nations.

Source: egov.uz