Jakarta, INTI - As President Prabowo Subianto’s administration enters its third year, Indonesia is strengthening international economic cooperation and accelerating digital transformation to support national economic growth amid global uncertainty.
The Coordinating Ministry for Economic Affairs stated that expanding access to international markets and developing the digital industry are key priorities for improving competitiveness, attracting investment, and creating employment opportunities.
Indonesia Advances ASEAN Digital Economy Framework Agreement
Indonesia is pushing for the completion of negotiations on the ASEAN Digital Economy Framework Agreement (DEFA), which has reached substantial agreement. The agreement is expected to be signed during an ASEAN Summit.
According to government projections, DEFA could help increase the value of ASEAN’s digital economy to US$2 trillion by 2030, with Indonesia expected to account for the largest share of the regional market.
The framework is intended to strengthen regional digital integration and support cross-border economic activities as Southeast Asian countries expand their digital industries.
Three Trade Agreements Expected to Boost Indonesian Exports
The government is also advancing three strategic trade agreements: the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA), and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA).
According to government impact assessments, IEU-CEPA could increase Indonesia’s exports by up to US10.9billion.Meanwhile,I-CACEPAisprojectedtogenerateanadditionalUS1.6 billion in exports, while I-EAEU FTA could contribute between US2.2billionandUS2.89 billion.
Negotiations on IEU-CEPA have entered the technical finalization stage at the Council of the European Union. Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, said on October 22, 2026, that Coordinating Minister Airlangga Hartarto is targeting ratification of the agreement in the second half of 2026.
The government expects implementation to begin in early 2027. The agreement is intended to reduce tariff barriers, expand export opportunities for manufactured goods, and strengthen Indonesia’s participation in global supply chains.
Indonesia Continues Its OECD Accession Process
Indonesia is also progressing toward membership in the Organisation for Economic Co-operation and Development (OECD).
According to the Coordinating Ministry for Economic Affairs, Indonesia is the only country in Southeast Asia currently holding official OECD candidate status. The government is targeting full membership by 2028 through the completion of the milestones outlined in its Accession Roadmap.
Joining the OECD is expected to support regulatory improvements, strengthen economic governance, and align Indonesia’s policies with international standards.
AI and Digital Infrastructure Become Growth Priorities
Alongside trade expansion, the Indonesian government is promoting artificial intelligence (AI) as a potential driver of future economic growth.
Indonesia became one of the founding members of the World Artificial Intelligence Cooperation Organization (WAICO) during activities associated with the World Artificial Intelligence Conference in Shanghai, alongside representatives from 30 countries.
The cooperation aims to promote AI governance that is safe, ethical, and human-centered.
Haryo explained that AI could be applied across various sectors, including modern agriculture, energy transition, renewable energy, healthcare, and other digital industries.
He also cited government estimates placing Indonesia’s digital economy at approximately US130billion,withatargetofreachingUS300 billion. AI adoption is expected to provide additional opportunities for growth.
To support this expansion, the government is encouraging investment in data centers and digital infrastructure to meet the increasing needs of technology companies and digital businesses.
Indonesia Targets 9 Million Digital Professionals by 2030
Developing a skilled digital workforce is another major priority in Indonesia’s transformation agenda. The government aims to meet the national demand for nine million digital professionals by 2030, alongside a target of training 600,000 people annually.
Skills development programs will focus on key areas such as artificial intelligence, data science, and cybersecurity, which are increasingly important as businesses adopt advanced technologies and strengthen their digital operations.
Building a qualified workforce is expected to help Indonesian companies adopt emerging technologies, improve productivity, and compete more effectively in international markets.
Trade Cooperation and Digital Transformation to Support Long-Term Growth
Indonesia’s efforts to expand international trade agreements, strengthen regional digital integration, and accelerate AI adoption reflect a broader strategy to improve economic resilience and industrial competitiveness.
By combining wider export opportunities with investment in digital infrastructure and workforce development, the government aims to create new employment opportunities and strengthen the foundations of a technology-driven economy.
These initiatives also form part of Indonesia’s longer-term ambition to achieve high-income country status, with international cooperation and digital innovation expected to play increasingly important roles in the country’s economic development.
Conclusion
Indonesia is strengthening its economic competitiveness through international trade agreements, regional digital cooperation, and AI development. With a target of training nine million digital professionals by 2030, the government aims to build a skilled workforce capable of supporting digital transformation, attracting investment, and creating new employment opportunities. These initiatives are expected to contribute to Indonesia’s long-term ambition of becoming a high-income country.
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