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AsiaSoutheast AsiaID

Indonesia

AI Agent Legal Status: undefined · Autonomy: low

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4Score /10

Legal Framework

Indonesia's National AI Strategy (Stranas KA 2020-2045) outlines long-term AI development goals but specific regulation remains limited. PP 71/2019 governs electronic systems and transactions. OJK operates a fintech sandbox for financial technology innovation. The regulatory environment is evolving but lacks clarity on autonomous AI systems.

Key Laws & Regulations

  • National AI Strategy (Stranas KA 2020-2045)
  • Government Regulation 71/2019 on Electronic Systems
  • OJK Fintech Sandbox Regulations

Business Formation

PT PMA (foreign investment company) is the standard entity for foreign businesses. Minimum capital requirements and foreign ownership restrictions apply in certain sectors.

Tax Implications

Standard CIT rate of 22%. Tax incentives available for investments in priority sectors and special economic zones.

Opportunities

Massive domestic market of 280M+ people with accelerating digital transformation. Growing startup ecosystem with significant venture capital interest. Government incentives for technology investment.

Highlights

Largest digital economy in Southeast Asia with rapidly growing internet adoption. Government committed to long-term AI development strategy.

Risks & Challenges

Regulatory uncertainty around AI and autonomous systems. Complex bureaucracy and foreign ownership restrictions. Data localization requirements under GR 71/2019.