Artificial Intelligence and Robot Tax Regulation in Indonesia: Prospect and Challenges

Abstract

Background: As the integration of artificial intelligence (AI) and robotics in various industries accelerates, Indonesia faces significant economic and social challenges, including job displacement and income inequality. In response, the Indonesian government is contemplating the implementation of an AI and robot tax.

Methodology: This article employs mix method legal research since it discusses not only in legal aspect, but also in economic aspect such as the intersection of law, AI, the future of work, and the economy involves a multi-faceted approach to understanding how AI technologies impact labour markets, employment law, and economic regulations.

Objectives: This article aims to provide the overview of future of work as AI has influenced economic regulation. Besides that, this article provides the AI regulations, and economic policies to assess their adequacy in addressing the challenges posed by AI.

Findings: The findings are synthesized to provide a comprehensive view of how existing laws can adapt to the evolving landscape of AI and work, and to propose legal and policy recommendations that ensure fair and equitable outcomes in the AI-driven economy through taxation.

Originality/Novelty: The originality of this article lies in the approach to address the AI challenges towards Indonesian legal system. Besides that, there must be economic policy issued by the Government, followed by the company to tackle the negative impact towards economic growth. Comparison to other countries has been carried out to find the best formula and economic strategies to address the future of work and economy