Following up on Press Release No. 254/HM/KOMINFO/08/2023 dated August 30, 2023 in which the Minister of Communication and Informatics (the "MOCI") announced that the MOCI was developing an ethical guideline for the use of Artificial intelligence ("AI"), the MOCI has recently issued the latest draft of the Circular Letter on Ethical Guideline for the Use of AI (the "Draft Circular Letter").

The Draft Circular Letter is intended for business actors engaging in business activities with the Business Classification (KBLI) 62015 on Artificial Intelligence-Based Programming Activities (Aktivitas Pemrograman Berbasis Kecerdasan Artifisial). The major points stipulated in the Draft Circular Letter are as follows.

  • Purpose and Objective

The purpose of the Draft Circular Letter is (i) to serve as an ethical guideline in preparing and formulating internal policies of companies regarding data and internal ethics of AI, and (ii) to serve as an ethical guideline in the implementation of AI-based consultations, analysis, and programming in accordance with the laws and regulations.

The objective of the Draft Circular Letter is to provide a reference of ethical values for business actors having AI-based programming activities, regarding ethical criteria or considerations in consultation, analysis, and programming utilizing AI Technology.

  • Definitions

The Draft Circular Letter provides the definition of certain terms as follows:

  1. AI is a form of programming on a computer device in carrying out careful processing of data;
  2. Implementation of AI is an activity related to research, product development, marketing, and the use of AI; and
  3. AI Ethics is a basis that regulates the principles and norms of decency in utilizing AI which is based on values of inclusivity, transparency, humanity, and security in the use of available data resources.
  4. Scope of Utilization of AI Capability and AI Technology

The Draft Circular Letter stipulates the scope of utilization of AI capabilities which includes activities of consultancy, analysis, and programming. Further, the Draft Circular Letter stipulates that the use of AI technology is included in the subsets of machine learning, natural language processing, expert system, deep learning, robotics, neural networks, and other subsets.

  • Values of AI Ethics

The Draft Circular Letter provides the values of AI Ethics which shall be adhered to in the use of AI technology, namely (i) inclusivity, (ii) humanity, (iii) security, (iv) democracy, (v) transparency, and (vi) credibility and accountability.

  • Implementation and Responsibility

The Draft Circular Letter stipulates several points relating to the implementation of the use of AI, among others, (i) the use of AI shall be based on the applicable ethics and code of ethics, (ii) supervising the development of AI-based technology programming to prevent crime and misuse of technology, and (iii) maintaining mutual data privacy in the use of AI to ensure that no individual is harmed.

Further, the responsibilities related to the use of AI stipulated in the draft Circular Letter are, among others, (i) providing protection to the public in the use of AI, particularly relating to the use of personal data, (ii) ensuring that AI does not replace human existence, and (iii) preparing strategy of risk management to ensure the security of users and to mitigate accidents in the use of AI.

Based on Press Releases No. 538/HM/KOMINFO/12/2023 dated December 5, 2023 and No. 546/HM/KOMINFO/12/2023 dated December 6, 2023, the Vice of MOCI elaborated that the Draft Circular Letter does not contain any sanctions as the nature of the Draft Circular Letter is to serve as a normative guideline, instead of a statutory provision. The Vice of MOCI also aimed that the Draft Circular Letter to be officially issued within December 2023, while the MOCI is currently in the process of resolving certain issues in the Draft Circular Letter. Inputs from the relevant stakeholders on the Draft Circular Letter are expected. We will monitor the development and will issue further updates as relevant.

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