Indonesia Bets on AI Expansion with Health Data Goldmine, Still Lags Behind Singapore’s Startup Dominance

Indonesia's government is making a high-stakes wager: unlocking its vast health data reserves to fuel an artificial intelligence boom.

The Data Play

Officials are pushing to leverage anonymized medical records as a foundational dataset for training domestic AI models. The strategy aims to create a homegrown tech ecosystem rather than relying on foreign algorithms. Think of it as building a digital brain with local knowledge—a potential game-changer for diagnostics and public health.

The Startup Gap

Despite the ambitious data play, Indonesia's tech scene still trails a key regional rival. The number of active startups there hasn't caught up to Singapore's dense cluster of venture-backed firms. Singapore's regulatory sandbox and global finance links continue to give it a formidable edge in attracting talent and capital.

Why It Matters

This isn't just about tech—it's about economic sovereignty. Controlling the data means controlling the future value it generates. Indonesia's move signals a broader shift where nations treat data as a strategic asset, similar to oil or minerals in the last century.

The Bottom Line

Indonesia is digging into its own backyard for AI fuel, but building a refinery is harder than owning the mine. The real test will be whether local entrepreneurs can out-innovate well-funded competitors next door—because in tech, as in traditional finance, sometimes the best infrastructure just attracts smarter arbitrageurs.

TLDRs

• Indonesia has 25 AI startups, far fewer than Singapore’s 300, but growth potential exists.
• Government pushes AI adoption by connecting public sector, startups, and industry partners.
• SATUSEHAT national health database offers large-scale data for digital healthcare AI projects.
• Regulatory and compliance frameworks are evolving to boost trust in fintech and AI innovation.

Indonesia currently hosts only 25 AI startups, a stark contrast to Singapore’s nearly 300, according to a Google survey cited by Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.

Speaking at the Rapimnas Kadin 2025 event in Jakarta, Hartarto emphasized that this gap should not be seen purely as a shortfall but as a unique opportunity for rapid growth and innovation.

“The disparity between Indonesia and Singapore creates ample room for tech players to accelerate AI development,” Hartarto said, highlighting the country’s advantage in large-scale datasets as a potential growth driver.

Government Encourages Cross-Sector Collaboration

To bridge this gap, the Indonesian government is actively fostering collaboration between the public sector, private industry, and emerging startups.

Initiatives aim to remove barriers to innovation and create an ecosystem where AI solutions can be tested, scaled, and deployed efficiently.

Hartarto noted that Indonesia’s AI ambitions extend to critical sectors such as healthcare, logistics, and finance. By encouraging cooperative efforts, the government hopes to stimulate a surge in homegrown AI technologies that can compete regionally and globally.

Health Data as a Catalyst for Innovation

A key component of Indonesia’s AI strategy is leveraging the country’s extensive health databases. The national health data integration platform, SATUSEHAT, currently connects 34,463 healthcare facilities.

Through modules like SATUSEHAT Mobile and IndonesiaKu, data exchange occurs between healthcare providers and government decision-makers.

Hartarto highlighted that SATUSEHAT could provide valuable datasets for AI-driven healthcare solutions, including digital diagnostics and treatment planning. International attention is also growing, figures such as Bill Gates have reportedly shown interest in research utilizing Indonesia’s health data, including studies on tuberculosis vaccine development.

However, access rules for startups remain unclear. While 3,138 of 3,239 hospitals use electronic medical records, 495 facilities still lack six Core services, making external research and AI testing more complicated. Public guidelines on sandbox environments, APIs, and approval processes for startup access have yet to be formalized.

Compliance and Governance Driving Fintech AI

Beyond healthcare, Indonesia’s fintech sector is seeing increased adoption of AI-enabled compliance and governance tools.

Recent fraud cases involving TaniHub and eFishery highlighted vulnerabilities, prompting the Financial Services Authority (OJK) to issue 2024 Financial Sector Technology Innovation (FSTI) regulations. These rules expand recognized business models to include risk management and regulatory technology solutions.

Vendors offering security, compliance, and risk software now have access to 30 licensed FSTI organizers and 23 program ecosystems. Recent OJK initiatives, including cybersecurity guidelines for digital asset platforms and financial aggregator rules, further incentivize startups and investors to prioritize compliance.

Early adopters, such as 18 licensed securities crowdfunding operators, have collectively raised IDR 1.53 trillion as of April 2025, demonstrating strong public engagement in regulated digital finance.