LEGAL TRANSFORMATION IN THE DIGITAL AGE: ANALYSIS OF LEGAL CHANGES TO ARTIFICIAL INTELLIGENCE REGULATIONS IN INDONESIA

Abstract

This article examines the evolving regulatory landscape of artificial intelligence (AI) in Indonesia, analyzing the nation's legal transformation in response to rapid technological advancement. Indonesia has undertaken significant regulatory initiatives since 2020, including the National Strategy on Artificial Intelligence 2020-2045, the Ministry of Communication and Informatics Circular Letter No. 9 of 2023, and sector-specific guidelines for financial technology and journalism. This study employs a doctrinal legal research methodology, examining primary legal sources, policy documents, and comparative frameworks from the European Union, Singapore, and Australia. The findings reveal that Indonesia adopts a hybrid regulatory approach, combining horizontal principles-based frameworks with vertical sector-specific regulations. However, gaps persist in comprehensive AI-specific legislation, enforcement mechanisms, and institutional oversight structures. The research demonstrates that while Indonesia has made substantial progress in establishing ethical guidelines and strategic frameworks, the absence of a unified AI law and the National Data and Artificial Intelligence Ethics Council creates regulatory fragmentation. This article contributes to the understanding of AI governance in developing nations and provides insights into the challenges of balancing innovation with regulatory oversight in emerging digital economies.