What could a restrictive Copyright Law cost Indonesia in the age of AI?
Indonesia is revising Law No. 28/2014 on Copyright to protect creators amid the rise of AI and digital platforms. The goal is important. But how the rules are designed will shape whether Indonesia can access frontier AI and attract the investment that comes with it.
Together with Universitas Islam Internasional Indonesia (UIII), we analyzed the draft bill and found that a restrictive framework could cost Indonesia up to IDR 511 trillion (USD 28.4 billion) in cumulative GDP-equivalent value through 2030, across three channels:
- Productivity: up to IDR 44.1T per year held back if frontier AI models arrive late
- Innovation: up to IDR 17.4T per year economic value firms and researchers lose out on the latest tools
- Investment: up to IDR 324T in data center investment at risk of delay or cancellation
Our report also looks at who has the most at stake, how Singapore and Vietnam approach this issue in depth with reference to the Japan, the US, and others, and what the draft means in practice.
We also provide recommendations to policymakers in creating proportional regulations that can protect rights while achieving Indonesia's AI goal.