The Ministry of Communication and Informatics (Kominfo) of Indonesia announced the first AI regulation draft that will govern the use of AI systems in public and private sectors. The regulation is expected to come into effect starting Q3 2026.
Key points of the regulation include: algorithm transparency obligations for services affecting consumer financial decisions, data security standards for AI models processing sensitive data, and regular audit requirements for high-impact AI systems.
Impact on Digital Businesses
Tech companies using AI for credit scoring, recruitment, or content moderation must prepare model documentation and audit trails before the regulation takes effect. Businesses that are proactive in compliance will have a trust advantage in the eyes of consumers.