AI and unified data support Indonesia’s digital growth amidst rising volatility

Economic uncertainty and supply chain risks are increasing business pressure.

Indonesia’s next phase of growth will be shaped by the adoption of artificial intelligence, the unification of data systems, and improvements in operational efficiency, according to Sasanka Dutta, advisor at PricewaterhouseCoopers Consulting Indonesia.

Speaking at the Retail Asia Summit 2026 - Indonesia, Dutta outlined what he described as “Indonesia’s next leap,” framing it as a shift toward data-driven decision-making and AI-enabled operations across sectors including retail, supply chain, and consumer markets.

He said Indonesia’s economic transition is being shaped by rising global volatility, changing consumer behaviour, and accelerating technology adoption.

Dutta highlighted that businesses are operating in an environment of heightened uncertainty, particularly due to energy market disruptions and import dependency pressures.

He pointed to oil supply exposure as a key macroeconomic risk, noting that fluctuations in raw material costs are already feeding into inflationary trends.

Dutta said these pressures are not isolated but will cascade through multiple phases of economic impact, affecting pricing, production cycles, and long-term cost structures.

“Phase 1 is the immediate transmission, which means the cost goes up,” he said, adding that early signals of inflationary pressure were already visible in markets.

Dutta warned that delays in addressing structural inefficiencies could intensify longer-term economic strain, especially as supply chain disruptions continue to evolve.

Alongside macroeconomic risks, he identified a shift in consumer behaviour across Indonesia and the wider region. Increasingly, consumers are prioritising flexibility, well-being, and essential spending over discretionary purchases.

Dutta said post-pandemic behavioural shifts, combined with geopolitical uncertainty, have made consumers more cautious and selective in their spending decisions.

He then pointed to a broader trend of rising mental health awareness, lifestyle tracking, and digital self-monitoring.

Consumers are increasingly using technology to track health, sleep, and daily habits, a broader shift toward data-driven personal decision-making, said Dutta.

He added that emerging technologies are further blurring the line between digital tools and everyday life management.

Dutta said that companies are moving towards a model where employees will manage AI agents, as tasks and transactions are increasingly handled by these systems.

He said that organisations slow to modernise legacy systems risk falling behind, stressing that AI should not be viewed as a cost burden but as a growth enabler, arguing that early adopters are already seeing significantly higher productivity and efficiency gains.

“AI is no longer a trap to your job. It’s an augment to your job description,” he said.

He further noted that companies with advanced digital capabilities are adopting AI at a much faster pace than those still in early transformation stages, creating widening performance gaps across industries.

Companies with more advanced digital capabilities are adopting AI at a rate about 7.5 times faster than those that are just starting their transformation journey, he added.

Dutta also emphasised the importance of data integration, noting that businesses must move from simple data collection to full data unification across systems, supply chains, and customer channels.

He said China’s market success illustrates the importance of data-driven execution, particularly in pricing, consumer targeting, and digital commerce integration.

Dutta urged businesses to adopt a proactive stance toward transformation, citing that regulatory compliance, cybersecurity, and data governance will become increasingly critical as AI adoption expands.

He said organisations must also clearly define data ownership and accountability structures to manage risk effectively.