A REDEFINING GOVERNANCE IN INDONESIA THROUGH BLOCKCHAIN-INTEGRATED AI: INSIGHTS FROM ESTONIA'S DIGITAL NATION AND SOUTH KOREA'S SMART ADMINISTRATION

Abstract

This study examines the transformative role of blockchain and artificial intelligence (AI) in modernizing Indonesia's governance system, drawing on the success stories of Estonia and South Korea. Unlike previous research that focuses on isolated technological adoption, this paper presents a novel integration framework tailored to Indonesia’s socio-political landscape. The primary objective is to identify how blockchain and AI can address challenges such as bureaucratic inefficiencies, corruption, and lack of public trust, while fostering a more inclusive and transparent governance model. The research was motivated by Indonesia's urgent need for sustainable governance reform amid rapid digitalization and increasing public demand for accountability. Using a comparative case study methodology, the paper evaluates Estonia's blockchain-based e-governance initiatives and South Korea's AI-driven public services. The findings reveal that Indonesia can benefit from implementing blockchain for digital identity, land registration, and anti-corruption efforts, while leveraging AI for smart cities, predictive healthcare, and data-driven policy-making. However, the study also identifies limitations, such as inadequate digital infrastructure, regulatory barriers, and cultural resistance to change. Future research should explore the long-term sustainability of digital governance models and expand the scope to regional governance applications. This paper contributes to the discourse by offering actionable insights and a roadmap for Indonesia's digital transformation, providing lessons applicable to other developing nations.