Artificial Intelligence in Public Governance: Assessing Indonesia’s Readiness and Regulatory Framework

Governance constitutes a fundamental component of public administration and plays a decisive role in determining the quality, accessibility, and accountability of public services in Indonesia. As social needs and technological capabilities continue to evolve, the government is required to adapt its institutional structures, administrative mechanisms, and regulatory frameworks to ensure that public services remain effective, inclusive, and responsive. This requirement has become increasingly significant following the transformation of conventional government administration toward the Electronic-Based Government System (Sistem Pemerintahan Berbasis Elektronik or SPBE). Although digital transformation provides opportunities to improve administrative efficiency, transparency, and coordination, it also generates new challenges concerning state responsibility, data sovereignty, cybersecurity, personal data protection, and the safeguarding of citizens' rights in cyberspace. These challenges have become more complex with the emergence of Artificial Intelligence (AI), which enables automated data processing, predictive analysis, and decision-support mechanisms within governmental institutions. Accordingly, this study examines the urgency of governmental adaptation and the strategies required to establish AI-based governance that is consistent with the principles of legality, accountability, transparency, social equity, and public welfare. This research employs a doctrinal legal research method through a literature-based study, utilizing statutory, conceptual, and analytical approaches to examine the relevant legal framework, governance principles, and implications of AI adoption in public administration. The findings indicate that AI offers substantial opportunities to improve the efficiency, accuracy, responsiveness, and accessibility of public services. Nevertheless, its implementation may also generate algorithmic bias, limited decision-making transparency, cybersecurity vulnerabilities, privacy violations, and uncertainty regarding legal responsibility for AI-assisted administrative decisions. These risks demonstrate that technological advancement alone cannot guarantee the realization of effective and accountable governance. Government readiness must therefore be strengthened through regulatory adaptation, institutional capacity-building, the development of secure and equitable digital infrastructure, continuous evaluation of AI systems, and meaningful public participation. Furthermore, Indonesia requires clearer legal standards governing the responsible use of AI, including human oversight, accountability mechanisms, data protection, and legal remedies for individuals affected by automated decisions. This study argues that the integration of AI into SPBE should be understood not merely as a technological modernization initiative but as a legal and institutional transformation that must remain oriented toward the public interest. Ultimately, adaptive AI-based governance requires a balanced approach that maximizes technological benefits while ensuring legal certainty, ethical responsibility, social inclusion, and the protection of fundamental rights in Indonesia's evolving digital society.