Indonesia sees GovTech saving over $84 billion in state spending

hartono · Jun 30, 2026

Indonesia sees GovTech saving over $84 billion in state spending

Chairman of the Government Digital Transformation Acceleration Committee Luhut Binsar Pandjaitan (center) speaks to the press after attending a meeting on accelerating the digitalization of social assistance at the Ministry of Home Affairs headquarters in Jakarta on Tuesday (June 30, 2026). (ANTARA/Fianda Sjofjan Rassat)

Jakarta (ANTARA) - Indonesia's government technology (GovTech) transformation could save more than Rp1,500 trillion (about US$84 billion) through integrated public services, better-targeted social assistance and more efficient governance, Luhut Binsar Pandjaitan said.

"We have reported to the president that savings could exceed Rp1,500 trillion. The calculations are complete, realistic and have been submitted," said Luhut, chairman of the Government Digital Transformation Acceleration Committee, on Tuesday.

Luhut said the projected savings would come from integrating government services, improving the accuracy of social assistance distribution and streamlining public administration.

He said digital transformation is one of President Prabowo Subianto's priority programs, laying the foundation for AI-powered digital government.

Data from eight ministries and government agencies have been integrated and are being processed using artificial intelligence, while cybersecurity is being strengthened with support from the National Cyber and Crypto Agency (BSSN).

Luhut said the government is expanding pilot projects to 43 districts and cities after an initial rollout in Banyuwangi.

He said several regions, including Surabaya, have progressed more rapidly, prompting plans to extend the program to hundreds of districts and cities before a nationwide launch.

"We are not buying or importing expensive software. We are integrating about 27,000 existing applications across ministries and government agencies," he said.

Luhut said all software used in the digital transformation program has been developed by Indonesian technology talent, eliminating the need for imported systems.

Beyond improving social assistance targeting and strengthening anti-corruption efforts, Luhut said the initiative could gradually raise Indonesia's tax ratio from about 9 percent to 11-13 percent, bringing it closer to other ASEAN economies.