Workers must master AI skills as technology reshapes ASEAN labor markets, ministry warns

Workers must master AI skills as technology reshapes ASEAN labor markets, ministry warns

Indonesian workers must develop comprehensive understanding of artificial intelligence technology as the digital transformation fundamentally alters workplace dynamics across Southeast Asia, according to Deputy Minister of Communication and Digital Affairs Nezar Patria.

Speaking Saturday, Patria emphasized the urgency of AI literacy, citing data showing 79.8 million workers across ASEAN countries—representing 22.9 percent of total regional employment—now work in occupations with more than minimal exposure to generative AI. However, only 3.3 percent of the workforce, approximately 11.7 million workers, face the highest levels of exposure, according to the International Labour Organization report on generative AI and labor markets in ASEAN.

Indonesia ranks third among ASEAN nations in AI exposure, with 21.7 percent of employment affected, trailing Singapore at 42.2 percent and the Philippines at 28.1 percent. Vietnam and Thailand follow at 20.8 percent and 20.6 percent respectively.

This dilemma is real, because the rapid advancement of generative AI has changed the way we work, make decisions, and serve the public. For the Indonesian government, this finding is not just an academic topic.

Despite concerns about automation, employment in AI-exposed occupations has grown steadily across the region, increasing from approximately 66 million workers in 2017 to 74 million in 2022 and reaching 80 million in 2025, with no evidence of large-scale job losses to date. Meanwhile, roughly 67 percent of ASEAN employment remains in occupations with no identified AI exposure.

Gender disparities in AI exposure

The ILO analysis reveals significant demographic patterns, with women more than twice as likely as men to work in professions highly exposed to generative AI, highlighting potential equity challenges in the technology transition.

Interestingly, Indonesian workers appear to be embracing AI tools rapidly. Microsoft's Work Trend Index 2026 found that 33 percent of Indonesian workers qualify as "Frontier Professionals"—advanced AI users—more than double the global average of 16 percent. Additionally, the Stanford AI Index Report 2026 shows Indonesia recording 108 percent growth in AI talent, ranking sixth globally and leading Southeast Asia.

Policy framework and civil service training

The deputy minister stressed that government action cannot wait for AI's full impact to materialize.

The government must act as a knowledgeable regulator, not a reactive one.

Patria emphasized the need for proactive policy development to manage transformation before broader economic disruption occurs.

For civil servants involved in formulating labor, taxation, digital economy, and digital governance policies, understanding AI mechanics, impacts, and risks has become critical.

Skills upgrading and retraining are no longer optional.

The deputy minister noted that Law No. 20 of 2023 concerning State Civil Apparatus now frames competency development as both a right and an obligation for every civil servant.

The government has already taken concrete steps toward AI governance. In August 2025, the Ministry of Communication and Digital Affairs launched a National AI Roadmap, developed by a 443-member task force representing government, academia, industry, civil society, and media. The roadmap establishes action plans across three time horizons: short-term (2025-2027), medium-term (2028-2035), and long-term (2035-2045).

In January 2026, the ministry confirmed that Indonesia's Artificial Intelligence National Strategy 2020-2045 and accompanying AI ethics framework will be formalized as Presidential Regulations, elevating them from policy documents to binding legal instruments.

Patria expressed hope that strengthening government competency would focus on long-term readiness, including AI literacy, policy analysis capabilities, and data-based decision-making skills. Such capacity building aims to position civil servants as drivers of digital government transformation while helping construct a resilient and inclusive national workforce prepared for the AI era.

The deputy minister concluded that government readiness must be supported by robust governance structures and effective cross-sector coordination to successfully navigate the technology transition affecting millions of workers across the region.