The Indonesian digital economy has experienced significant growth over the past few years. In 2024, the Gross Merchandise Value (GMV) of the Indonesian digital economy was valued at USD 90 billion, representing a 13% increase from the previous year. Digital platforms have been instrumental in this growth, acting as intermediaries between groups such as buyers and sellers. Platforms, for example, have changed the way Indonesians purchase goods and services, propelling the nation’s e-commerce market, which is expected to grow from USD 53.1 billion in 2021 to USD 104 billion by 2025 at an annual growth rate of 18%. Digital payment platforms are also providing access to financial services for remote communities. This is especially relevant in Indonesia, where 60% of banks are concentrated on the more developed Java island.
Despite these advancements, Indonesia’s digital ecosystem faces persistent challenges. The rapid expansion of digital platforms has introduced regulatory complexities, data protection concerns, and workforce disruptions. The evolving nature of digital services requires adaptive policies that balance innovation with governance. Moreover, as the gig economy expands, issues related to worker protections, upskilling, and long-term economic security need to be addressed. If these challenges are tackled effectively, digital platforms have the potential to further advance Indonesia’s national priorities, such as financial inclusion, digital literacy, and sustainability, while ensuring equitable economic opportunities for all.
Amidst this evolving landscape, the Tech for Good Institute convened a roundtable discussion (RTD) on the role of digital platforms in national development. The discussion brought together key stakeholders from the public and private sectors, including government representatives, digital platform executives, academics, and civil society organisations. The session explored the impact of digital platforms across different sectors, the challenges facing the digital economy, and potential policy solutions to foster a more inclusive and sustainable digital ecosystem.
Moderators and Participants
- Dr. Nur Hygiawati Rahayu, Director of Manpower, Ministry of National Development Planning/Bappenas
- Muhammad Isran, Deputy of Manpower Harmonisation Policy, Kemenko Ekonomi (Coordinating Ministry of Economic Affairs)
- Ayodha Pramudita, Senior Policy Analyst, Kementerian Sekretariat Negara RI (Ministry of State Secretariat)
- Budi Primawan, Vice President Government Affairs, Lazada
- Dwinda A., Asst. Manager of Public Affairs & Government Relations, Lalamove Indonesia
- Hafiz Noer, Head of Research, Center for Digital Society (CfDS)
- Nailul Huda, Director of Digital Economy, Center of Economic and Law Studies (Celios)
- Cazadira Fediva Tamzil, Interim Executive Director of Public Policy, Pijar Foundation
- Maria Tambunan, Digital Development Specialist, The World Bank
- Citra Handayani Nasruddin, Programme Director, Tech for Good Institute
Ming Tan, Founding Executive Director, Tech for Good Institute
Regina Ng, Partnerships Lead, Tech for Good Institute
Basilio Claudio, Programme Associate, Tech for Good Institute
Key Takeaways
- Digital platforms are promoting Indonesia’s development priorities
Digital platforms have significantly contributed to Indonesia’s national development by promoting financial inclusion, improving transportation accessibility, driving e-commerce growth, and streamlining public service efficiency. Financial services and e-commerce platforms have opened new markets for MSMEs, especially during the COVID-19 pandemic, allowing new sellers to thrive. In the transportation sector, both delivery and ride-hailing services have not only enhanced urban mobility but also provided income opportunities for gig workers while collaborating with local governments to integrate local transport networks. Similarly, in tourism, platforms have enabled local businesses to reach global audiences, contributing to economic sustainability. Meanwhile, government-led digital initiatives have improved administrative efficiency. However, challenges remain in implementing policies and programs effectively and ensuring digital literacy, particularly in rural areas.
- The rapid growth of digital platforms necessitates enhanced coordination to balance opportunities and risks
The rapid expansion of digital platforms presents both opportunities and complexities, necessitating well-coordinated regulatory responses. As digital platforms operate across multiple sectors, effective governance demands collaboration with diverse government agencies. There is a need for a unified regulatory approach that integrates multiple agencies to avoid fragmentation and inconsistencies. Strengthening data protection frameworks and competition laws is critical to ensuring fair market practices and consumer rights in sectors like e-commerce and digital financial services. Furthermore, workforce disruptions due to platform-based work necessitate actions to enhance worker competitiveness and skill development. For instance, non-profits such as the Pijar Foundation have implemented micro-credentialing upskilling initiatives and fostered industry-academic collaborations through their Future Skills programme. At the same time, AI has a dual role—enhancing efficiency while posing potential displacement risks, reinforcing the urgent need for policies that facilitate equitable workforce transitions.
- Striking abalance between governance and innovation is essential
To maximise the benefits of digital platforms while addressing associated challenges, regulatory frameworks must foster innovation while promoting public welfare. The implementation of regulatory sandboxes—for instance, the sandbox programme by the Indonesia Financial Services Authority for fintech startups—is a potential model for broader digital platform governance, allowing for controlled experimentation and real-time policymaking. Public-private collaboration is another key factor in creating effective regulatory environments. Governments can work with industry stakeholders to define the operational details of strategic plans, highlighting the potential for collaborative governance. Additionally, policies must balance consumer protection with business growth, ensuring that digital platforms operate in a fair and competitive environment while safeguarding user data and promoting responsible business practices. Overly restrictive regulations risk stifling innovation, while insufficient oversight could erode consumer trust.
