In an era of fiscal constraints and shifting government priorities, Indonesia’s public sector is increasingly turning to data analytics to optimise spending, reduce inefficiencies, and improve service delivery.

The intersection of cost efficiency and data-driven decision-making is now a critical area of focus, as ministries and government agencies strive to maintain operational effectiveness while navigating evolving national agendas.

We spoke to Putri Wikie Novianti, the head of data analytics team at INA Digital Edu to discuss their data journey under this new fiscal strategy.

Harnessing Data for Smarter Budgeting and Financial Accountability

One of the most significant ways data is transforming public sector efficiency is through its application in financial planning and monitoring. INA Digital Edu has helped the Ministry of Primary and Secondary Education to integrate data analytics concepts into key digital platforms, such as ARKAS and Rapor Pendidikan.

• ARKAS (Aplikasi Rencana Kegiatan dan Anggaran Sekolah) allows schools to digitally manage their financial planning and expenditures, ensuring that government-allocated funds are used effectively.
• Rapor Pendidikan serves as a monitoring dashboard that tracks school conditions and by leveraging big-data analytics, Rapor generates actionable recommendations for school improvements, which further it is expected to ensure better financial accountability.

The insights from Rapor can serve as valuable reference points for enhanced school planning within the ARKAS system. With over 400,000 schools utilising these platforms, Indonesia's Ministry of Primary and Secondary Education is seeing firsthand how scalable data processing enhances efficiency and transparency.

AI-Powered Solutions to Enhance Public Services

With an increasing number of digital users, the Ministry of Primary and Secondary Education faces the challenge of providing educational content at scale while maintaining quality and compliance with regulatory standards. To address this, INA Digital Edu has implemented AI-powered solutions that automate key processes:

• AI-assisted content curation has dramatically increased efficiency by handling seven times more documents per month compared to manual validation.
• AI-driven validation has also reduced monthly operational costs by 99%, demonstrating the tangible financial benefits of automation.

The success of these AI-powered initiatives highlights the broader opportunity for automation in Indonesia’s public sector, allowing ministries to maximise their impact while optimising costs.

Ensuring Cost-Effective Investments in Data Infrastructure

Investing in data infrastructure and analytics must be measured beyond financial returns. As President Joko Widodo emphasised at the SPBE Summit 2024 and the launch of INA DIGITAL, public service efficiency should be evaluated based on:

“The presence of bureaucracy should serve to facilitate, not complicate or slow things down. The benchmarks should be public satisfaction, the benefits received by the public, and the ease of public affairs.”

This principle has guided INA Digital Edu’s approach to leveraging data infrastructure in a cost-effective manner, including:

• Advanced Data Processing & Storage – By implementing robust data management strategies, INA Digital Edu has achieved over 50% annual cost savings while ensuring data security and scalability.
• Data Governance Practices – Standardising data layering, access management, and a Single Source of Truth for Educational Master Data has streamlined operations and ensured data quality.
• Cross-Ministry Data Interoperability – By aligning with Satu-Data Indonesia, the government is promoting efficient data-sharing practices that eliminate duplication, reduce infrastructure costs, and enhance collaboration.

These initiatives illustrate that with the right governance and strategic investments, data infrastructure modernisation can drive both cost efficiency and improved public services.

Untapped Opportunities for Further Cost Reduction

While current efforts have yielded substantial improvements, several untapped opportunities could drive further cost savings across government programs:

• Implementing a Robust Data Quality Monitoring System

A standardised data quality monitoring system reduces inefficiencies in manual data reconciliation. For high-stakes programs such as scholarships, teacher allowances, and school budgets, reliable data is crucial. Expanding this system across ministries would further prevent costly delays and errors.

• Standardising Data Sharing Across Government Entities

Aligning with Satu-Data Indonesia by using platforms like SPLP (Sistem Penghubung Layanan Pemerintah) minimises redundant data storage and replication. By enhancing interoperability, ministries can improve efficiency and reduce infrastructure costs.

• AI-Driven Automation for Back-Office Operations

Generative AI’s most significant potential lies not in customer-facing applications but in streamlining government workflows. INA Digital Edu has already seen success in AI-driven initiatives such as:

With Indonesia’s vast geography and finite administrative resources, AI-driven automation presents a transformational opportunity to reduce costs, improve decision-making, and enhance operational efficiency.

Ensuring Continuity of Data Initiatives Amid Policy Changes

One of the biggest challenges in Indonesia’s public sector is ensuring that data initiatives remain consistent despite shifting government priorities. To maintain momentum, agencies must:

• Embed data-driven decision-making into long-term policy frameworks rather than short-term political directives.
• Develop governance structures that prioritise data continuity, even as leadership changes.
• Balance innovation with stability, ensuring that new technologies integrate seamlessly with existing infrastructure.

Case Study: INA Digital Edu’s Contact Center Unit

A strong data infrastructure has enabled significant improvements in public service responsiveness. By integrating data from multiple sources into a centralised platform, INA Digital Edu has:

• Empowered self-serve data access, allowing the Customer Support Team to resolve inquiries efficiently.
• Reduced dependency on the Data Analytics Team for extraction, improving productivity.
• Earned recognition as Indonesia’s Best Contact Center for Technology Innovation in 2024.

Furthermore, the integration of AI-powered chatbots into platforms like Ruang GTK optimised user interactions, enabling teachers to navigate their actions in the platforms and to independently find answers to their queries. This has led to a 40% repeat usage rate among teachers and a 96% positive feedback score on chatbot responses. Additionally, it has allowed the contact center to allocate more resources toward addressing complex and high-priority issues. These initiatives demonstrate that data and AI governance can drive service improvements while keeping costs in check.

Future Outlook: The Road Ahead for Data in Indonesia’s Public Sector

As Indonesia advances its digital transformation agenda, several key areas will shape the next phase of data-driven governance:

• Expanding AI-driven automation to optimise service delivery and resource allocation.
• Strengthening cross-sector data interoperability to enable seamless collaboration between ministries and agencies.
• Enhancing data governance frameworks to ensure transparency, security, and compliance.

By prioritising strategic data investments, strong governance, and AI-powered automation, Indonesia’s public sector can drive efficiency, improve service quality, and maximise the impact of every rupiah spent. The road ahead is clear: those who embrace data as a strategic asset will lead the nation’s digital transformation.

For more information on speaking and partnership opportunity at CDAO Indonesia, reach out to Eleen Meleng to learn more.