Indonesia, as the largest economy in Southeast Asia and home to over 270 million people, is well-positioned to leverage the benefits of digitalization.
Indonesia, as the largest economy in Southeast Asia and home to over 270 million people, is well-positioned to leverage the benefits of digitalization. The Indonesian government has recognized the importance of digital transformation and has implemented several policies and initiatives to accelerate the country’s digital journey.
One of the key initiatives is the Digital Roadmap, which outlines the government’s vision and strategy for digital development between 2021 and 2024. The roadmap focuses on four strategic sectors: Digital Infrastructure, Digital Government, Digital Economy, and Digital Society.
The Indonesian Internet Service Providers Association (APJII) reported that internet penetration in Indonesia has risen from 78.1 percent in 2023 to 79.5 percent in 2024. This high reach has been enabled due to multiple initiatives mentioned below that have built the Indonesian digital infrastructure:
The Indonesian government is not only working to improve connectivity but also to establish digital central systems. In 2018, the government released Presidential Regulation 95/2018, which outlines the establishment of an e-Government system (Sistem Pemerintahan Berbasis Elektronik/SPBE). This regulation calls for the creation of a master plan for the e-Government system, covering various topics such as business processes, data and information, budget planning, e-Government infrastructure, e-Government applications, e-Government security, and e-Government services.
A study by Google, Temasek, and Bain & Company projects Indonesia’s digital economy to surpass USD 124 billion by 2025. With nearly 11% growth last year, Indonesia is on track to become a significant global player. The government aims to digitize over 64 million MSMEs, targeting 30 million by 2024. Initiatives like the #1000StartupDigital movement are fostering a robust start-up ecosystem, making Indonesia a leader in unicorns and home to one decacorn. The GoTo Group, a merger of GoJek and Tokopedia, is developing a super app for various sectors. President Jokowi supports the growth of startups in financial services, industry, digital media, agriculture, education, health, and digital cities.
To encourage a more digital society, the government’s “Digital Talent Scholarship” program, which was established to train youth and professionals in the digital sector, aims to train 9 million talents by 2030. The government has also initiated several other programs to encourage a more digital society under the DTS, which include:
Alongside these, another initiative known as the National Movement on Digital Literacy is also promoting digital awareness and inclusivity.
Indonesia’s digital roadmap is a strategic blueprint designed to position the country as a digital leader in Southeast Asia. With initiatives like the “Digital Talent Scholarship” and other programs, the government is creating a favorable environment for digital transformation. However, companies must consider the disparities in digital infrastructure and ensure compliance with local regulations.
ASEAN Business Partners can provide the necessary expertise, local insights, and strategic support to help international companies leverage these opportunities, tap into Indonesia’s burgeoning digital economy, and contribute to the country’s digital transformation journey. By partnering with ASEAN Business Partners, businesses can ensure a successful market entry and sustainable growth in Indonesia.
