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As Indonesia is poised to increasingly adopt automation and AI, it needs to take a balanced, careful approach to formulating a robot tax as part of a comprehensive strategy to tapping the benefits of advanced technologies toward their equitable distribution. The rapid advancement of automation and artificial intelligence (AI) presents both unprecedented opportunities and challenges. The global context paints a stark picture as AI could eliminate US$9 trillion in employment costs by automating knowledge work.
Automation undeniably brings significant benefits such as increasing productivity, generating wealth, and creating new jobs. However, it also has a dark side that cannot be ignored, leading to unemployment, income inequality, and reduced tax revenue. Indonesia's current tax system inadvertently favors automation over human labor, which poses challenges for tax collection and public services funding.
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