Indonesia Can Use AI to Save Subsidized Fuel Budget Up to US$3.1 Billion: Minister
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12 August 2024 09:30 WIB
TEMPO.CO, Jakarta - Indonesia can save a budget of up to Rp50 trillion (US$3.1 billion) per year by employing artificial intelligence (AI) to tighten controls of subsidized fuel, stated Maritime Affairs and Investment Coordinating Minister Luhut Binsar Pandjaitan.
Speaking at a coordinating ministry building in Nusantara Capital City (IKN), East Kalimantan, on Sunday, August 11, 2024, he therefore encouraged state-run oil and gas giant PT Pertamina to continue making good use of the cutting-edge technology to ensure precise distribution of subsidized gasoline.
"Those who do not deserve (the subsidized fuel) must not become the recipients," he stressed.
Panjaitan continued to speak highly of the utilization of digital technology, highlighting Indonesia's success in saving as much as Rp3,000 trillion (USD188.3 billion) by making the most of the government digital procurement platform e-Katalog.
In addition to the implementation of AI in tightening controls of the subsidized fuels, Pandjaitan commended the Mineral and Coal Information System for Ministries/Institutions (Simbara) for enabling the government to boost its revenue.
By implementing the automatic blocking system to deal with debts, the government has garnered Rp1.1 trillion (nearly US$68 million) in state revenue, he said.
"With all that in mind, it is safe to say that the use of technology has significantly increased our (budget) efficiency," he remarked.
Earlier, Pertamina President Director Nicke Widyawati informed that her side has been utilizing AI to manage its business comprehensively, from upstream to downstream sectors.
"We have begun to use AI to process and analyze data in a faster manner, thereby allowing us to make accurate decisions," she said.
With the help of the progressive technology, Pertamina is able to process data on some 15 million transactions of subsidized fuels on a daily basis.
ANTARA
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