Indonesia is gearing up to roll out an AI-driven social aid distribution system aimed at cutting costs. Government estimates suggest the initiative could save up to Rp 100 trillion (US$6.2 billion).
The program, announced by National Economic Council head Luhut Pandjaitan, utilizes facial recognition technology to confirm eligibility for state aid. This move seeks to minimize fraud and inefficiencies in subsidy distribution.
President Prabowo Subianto has backed the initiative, with plans for implementation as soon as August. 
“Who is eligible and [who is] not will be verified through facial recognition. This digitalization could save us up to Rp 100 trillion,” Luhut stated.
This launch comes alongside Sahabat AI, an open-source large language model tailored for the Indonesian language. Luhut highlighted that AI adoption and other technologies could boost the country’s economy by $2.8 trillion by 2040, adding 0.55 percentage points to annual GDP growth.
The government is betting big on AI to help modernize its social programs. The clock is ticking as they prepare for a broader AI roadmap next month.
