Artificial intelligence could lift workplace productivity by as much as 40 per cent when organisations redesign workflows, update standard operating procedures (SOPs) and upskill employees, Indonesia’s Manpower Minister Yassierli said.
Speaking at the Indonesia Human Capital and Beyond Summit 2026 in Tangerang, Banten, on Tuesday, Yassierli said AI adoption should be human-centred and focused on strengthening workforce productivity rather than simply replacing jobs.
Sectors with higher levels of AI utilisation are recording faster productivity growth than those with lower AI adoption, he said, while cautioning that greater use of the technology does not necessarily translate into significant workforce reductions.
“However, the use of AI does not necessarily mean a drastic reduction in the workforce,” Yassierli said.
Yassierli said organisations need to look beyond hiring AI specialists or deploying the technology as a digital assistant. The greater productivity gains come when AI adoption is accompanied by changes to how work is organised and delivered.
Using AI primarily as an operational assistant can raise productivity by around 5 per cent on average, he said.
However, redesigning workflows and SOPs, followed by targeted employee upskilling, could potentially raise productivity by 30 to 40 per cent.
“AI adoption is not limited to hiring experts or turning AI into merely a digital assistant,” he said.
The minister also pointed to findings from a Boston Consulting Group study of 1,250 companies, which found that 60 per cent of AI pioneer companies had yet to see significant business benefits. Flawed implementation strategies were among the factors behind the limited returns, he said.
The findings highlight a broader challenge for employers: AI investment alone does not guarantee productivity gains unless organisations rethink processes, skills and how technology is integrated into everyday work.
Yassierli said AI can create new business opportunities while increasing demand for specific skills. As a result, workers will need both expertise in their respective fields and the ability to use AI effectively in their jobs.
He argued that technological transformation should therefore be treated as part of a broader competitiveness and employment strategy.
“Therefore, technological transformation needs to be positioned as part of a strategy to strengthen competitiveness while also supporting sustainable employment development,” he said.
The approach also reflects a shift from viewing AI primarily through the lens of automation towards using it to augment human capabilities.
Yassierli outlined four principles that Indonesia’s Manpower Ministry is promoting for responsible AI adoption in workplaces.
The first is that AI should strengthen human capabilities rather than simply replace workers.
Second, employees and labour unions should be involved in the implementation process.
Third, decisions made with the help of AI that affect workers’ rights, safety or employment opportunities must remain subject to human oversight.
The fourth principle is inclusion, ensuring that workers are not left behind as organisations adopt new technologies, including older employees.
To support this approach, the ministry is running an AI-based productivity pilot project and developing an official guide for workplace AI implementation. It is also preparing a collaboration platform where companies can exchange knowledge and share AI implementation practices.
The emphasis on workflow redesign and reskilling suggests that the productivity impact of AI will depend as much on organisational transformation as on the technology itself.