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Indonesia Set to Lead the Growth of ASEAN’s Digital Economy

17 hours ago | Digital Technology


Jakarta, INTI - Indonesia’s Minister of Communication and Digital Affairs, Meutya Hafid, stated that Indonesia holds a strategic position as one of the leading forces driving the digital economy in Southeast Asia.

With a population of 281 million people and more than 220 million internet users, Indonesia represents both the largest digital market and a key engine of digital economic growth within ASEAN.

To maximize this potential, the government continues to strengthen the foundation of digital sovereignty through the advancement of artificial intelligence (AI), expansion of digital infrastructure, and development of national digital talent to ensure that the benefits of digital transformation are accessible to all citizens.

“Indonesia has strong advantages in terms of market scale and digital transformation readiness. This combination places Indonesia in a crucial position as a driver of digital economic growth across the region,” Meutya said during the Indonesia Summit 2026 in Jakarta on Wednesday, June 17, 2026.

According to Meutya, Indonesia’s digital economy is currently valued at approximately USD 100 billion and is projected to reach USD 360 billion by 2030. This growth is fueled by the rapid expansion of e-commerce, the increasing number of internet users, and the contribution of millions of micro, small, and medium enterprises (MSMEs).

Digital Infrastructure and AI Investments Accelerate Indonesia’s Transformation 

To support this expansion, the government continues to enhance the country’s digital infrastructure. Indonesia has developed 446,000 kilometers of fiber-optic backbone networks, launched the SATRIA-1 satellite serving nearly 30,000 public service points, and strengthened the capacity of its national data centers.

Over the past one and a half years, Indonesia’s data center capacity has increased by more than 260 percent, driven by strategic investments in artificial intelligence, cloud computing, and data center industries.

However, Meutya emphasized that the primary objective of digital transformation is not merely economic growth, but ensuring that technology delivers tangible benefits to society.

Therefore, the government promotes the concept of value retention, ensuring that a greater share of the digital economy’s benefits generated in Indonesia remains with local communities and national businesses.

“The growth of digital platforms is not the final goal. What we seek is real economic growth that creates direct benefits for the people,” she said.

As an example of impactful technology implementation, the government is currently developing an AI-powered digital social assistance system.

The initiative aims to improve the accuracy of beneficiary data, accelerate verification processes, and ensure that social assistance is distributed more effectively and accurately.

Beyond infrastructure development, the government is also focusing on strengthening human capital through various digital talent programs, including the Digital Talent Scholarship and digital literacy initiatives targeting women, MSMEs, and communities across different regions.

Meutya stressed that the success of Indonesia’s digital transformation must be experienced equally across the entire nation.

“If AI only succeeds in Jakarta, then AI in Indonesia has failed. Technology must deliver benefits to all Indonesians, including those living in regional areas,” she emphasized.

QRIS and Regional Collaboration Drive ASEAN’s Digital Integration 

Indonesia also encourages stronger regional collaboration through ASEAN’s digital economic development, including the advancement of the Digital Economy Framework Agreement (DEFA) to accelerate regional digital integration.

Meutya further highlighted Indonesia’s digital innovation, the Quick Response Code Indonesian Standard (QRIS), as a successful example of regional digital connectivity.

According to her, QRIS interoperability among countries demonstrates that digital cooperation can become a strong foundation for regional economic integration while positioning ASEAN as a promising hub for the global digital economy.

“QRIS is a payment model that demonstrates how interoperability can work effectively among ASEAN countries, even though the system has also been adopted in countries beyond ASEAN,” Meutya said before leaders and young participants attending the summit.

Conclusion

Indonesia is positioning itself as a major driver of ASEAN’s digital economy through strong digital infrastructure, AI development, talent empowerment, and regional collaboration. With initiatives such as QRIS interoperability and the Digital Economy Framework Agreement, Indonesia aims to ensure that digital transformation not only accelerates economic growth but also delivers inclusive and sustainable benefits for society.

Read more: Peruri Launches RFID-Based Blockchain Solution to Safeguard the Authenticity of Creative Industry Products

Indonesia Technology & Innovation
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