Jakarta, INTI - Indonesia is taking a major step toward accelerating its digital economy transformation through the Indonesia Open Network (ION), a national Digital Public Infrastructure (DPI) initiative designed to build an open and interoperable digital commerce ecosystem. Through this initiative, micro, small, and medium enterprises (MSMEs), farmers, cooperatives, and local businesses will gain greater opportunities to participate competitively in the digital economy.
Developed through close collaboration with the Ministry of Micro, Small, and Medium Enterprises of Indonesia, ION strengthens the SAPA UMKM initiative through PASAR SAPA, an interoperable transaction layer that transforms the platform into a nationwide digital commerce ecosystem. The system connects MSMEs with buyers, logistics providers, financial institutions, and various government services through an integrated digital network.
Unlike conventional marketplaces, ION does not create a new trading platform. Instead, it enables existing marketplaces, applications, and service providers to connect with one another through an open national digital infrastructure. This allows businesses to access wider markets, logistics services, digital payments, financing options, and other digital solutions without being dependent on a single platform.
Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman stated that the initiative reflects the government's commitment to ensuring equal opportunities for all businesses to benefit from Indonesia's digital transformation.
"Our vision is to ensure that every Indonesian MSME has equal opportunities to participate in the digital economy, regardless of business size or location. Through SAPA UMKM and Indonesia Open Network, we are building an open ecosystem that connects businesses with markets, logistics, financing, integrated public services, and AI-based solutions. This collaboration demonstrates how Digital Public Infrastructure can become a key driver of inclusive economic growth," Maman said.
Google Supports ION Development to Accelerate Digital Inclusion
ION was developed to address several structural challenges within Indonesia's digital economy. Millions of micro-businesses remain disconnected from digital commerce, while businesses in rural areas continue to face difficulties accessing broader markets. Agricultural supply chains remain fragmented, and women-led MSMEs as well as informal workers still experience limited access to digital and financial services. Many small businesses also rely on multiple disconnected digital platforms, increasing operational costs and reducing competitiveness.
Through this collaboration, Google Cloud supports the technical implementation of ION by leveraging advanced open-source technologies. Meanwhile, Google.org, Google's philanthropic organization, provides support during the incubation phase to accelerate digital commerce inclusion for micro-businesses and rural communities across Indonesia.
The collaboration brings together the Indonesian government, global experts, technology innovators, industry partners, and Google's technological and philanthropic capabilities to develop shared digital infrastructure that expands economic opportunities while maintaining openness, interoperability, and Indonesia's digital sovereignty.
Google Cloud Vice President of Engineering Anil Bhansali highlighted that Digital Public Infrastructure has significant transformative potential for society.
ION Expands Indonesia's Digital Economy Through Open Network Collaboration
ION also collaborates with Networks for Humanity (NFH) as a Knowledge Partner, contributing global expertise in developing open and interoperable digital ecosystems. In addition, the initiative is supported by a coalition of Founding Ecosystem Partners, including Indosat Ooredoo Hutchison, Protean e-Gov Technologies, Pidge, Remiges, Bajaj-Maxride, PlaceOrder, Haqdarshak, Integra Microsystems, Moving Tech Innovations, Infinys, and Blitz. More organizations from Indonesia and around the world are expected to join as the ION ecosystem continues to expand.
ION also represents a concrete implementation of the Memorandum of Understanding on Digital Cooperation between Indonesia and India, signed during President Prabowo Subianto's state visit to India in January 2025. Inspired by India's Open Network for Digital Commerce (ONDC) experience, ION has been specifically designed to align with Indonesia's economic characteristics, geographic conditions, and national development priorities.
ION Advisory Board Member and ONDC India Founder T Koshy stated that the strength of open networks lies in their ability to create shared infrastructure that enables innovation across the entire ecosystem rather than benefiting only individual platforms.
"The support from Google.org and the commitment of Founding Ecosystem Partners demonstrate growing confidence that open and interoperable Digital Public Infrastructure can become a catalyst for innovation, competitiveness, and sustainable national economic growth," he added.
As an additional layer of Indonesia's national digital commerce ecosystem, ION introduces ION Hyperlocal, an initiative aimed at developing community-based digital economies by connecting villages, districts, traditional markets, farmers, logistics providers, and local businesses within an integrated digital commerce network.
The initial implementation phase will begin in selected regions, focusing on expanding economic participation among MSMEs, farmers, women entrepreneurs, and informal sector workers while improving access to digital payments, financing, insurance, and other essential services.
Conclusion
The Indonesia Open Network (ION) represents a strategic step toward building a more inclusive and interconnected digital economy. By enabling open digital infrastructure, strengthening MSME participation, and fostering collaboration between government, technology companies, and industry partners, ION aims to expand digital opportunities while supporting Indonesia's long-term digital transformation and economic growth.
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