Jakarta (ANTARA) - The use of artificial intelligence (AI) can support the transformation and acceleration of economic growth in Indonesia, head of the Institute for Development of Economics and Finance’s (Indef’s) Center of Digital Economy and SMEs said.

"The impact of the use of AI in Industry 4.0 will reduce production costs," Eisha M. Rachbini highlighted at a discussion on the “Benefits and Impacts of AI Application on the Economy,” which was accessed online from here on Thursday.

The manufacturing sector has entered Industrial Revolution 4.0, where there is high connectivity between humans, machines, and data, which are interlinked to support the production process, she explained.

The utilization of AI in Industry 4.0 will also create unlimited connectivity through digital interactions established between humans, computers, and data to push higher production.

AI application in robotic machines can help humans perform jobs such as photo recognition and handwriting recognition.

She said that AI is one of the five core technologies for the development of the Industrial Revolution 4.0 in Indonesia, which has been planned as part of the economic transformation in the country.

AI application is planned to be used in five priority industries in Indonesia: food and beverages, textiles and textile products, medical devices and cosmetics, transportation, and electrical, electronic, and information, communication, and technology (ICT) devices.

The five sectors account for 70 percent of the GDP (gross domestic product) of industries, 65 percent of industrial exports, and 60 percent of the industrial workforce.

"The manufacturing industry is currently encouraged to carry out transformation so that they can do economic acceleration. Thus, the use of technological innovation is expected to be able to accelerate the growth in this sector," Rachbini remarked.

She further said that the use of AI, robots, and other technologies could help revitalize the manufacturing sector, that is, accelerate the growth of the manufacturing sector by increasing the added value of the products made by the sector.

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Translator: Martha Herlinawati, Raka Adji
Editor: Rahmad Nasution
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