Indonesia’s digital economy is one of the fastest-growing in Southeast Asia, underpinned by rapid internet adoption, mobile-first consumer behavior, and a thriving e-commerce sector. With over 221 million internet users and an internet penetration rate of 79.5 percent, Indonesia’s digital ecosystem is a crucial driver of economic growth. However, challenges such as regulatory fragmentation, digital infrastructure gaps, and data protection concerns continue to shape the digital transformation journey.

The government has responded by setting out strategic priorities, making changes to the bureaucracy and implementing various initiatives for a more coordinated and effective approach. It has established new regulatory frameworks to enhance data protection, cybersecurity, and digital payments. Agencies have been reorganised to streamline decision-making with the Ministry of Communication and Digital Affairs spearheading digital governance. Efforts are also underway to promote knowledge-sharing platforms to facilitate collaboration among government agencies, academia, and the private sector.

The rapid evolution of Indonesia’s digital economy creates both the need and opportunities for collaboration, not only across the public, private, and civil sectors, but also at the national, regional, and global levels. Amidst this backdrop, the Tech for Good Institute hosted a Roundtable Discussion with stakeholders from government agencies, the academe and the private sector to discuss Indonesia’s strategic priorities in 2025 for the development of the digital economy and society. The discussion also grounded these priorities within ambitions for regional interoperability.

Moderators and Participants

• Noudhy Valdryno, Deputy of Dissemination & Media Information, President Communication Office
• Theodore Sutarto, Assistant Deputy of Economy Digital, Kemenko Ekonomi (Coordinating Ministry for Economic Affairs)
• Rudiantara, Chairman (ex MOCI), Indonesia Fintech Society (IFSOC)
• Fixy, Secretary Deputy of Micro, Ministry of Micro, Small, and Medium-sized Enterprises
• Leontinus Alpha Edison, Deputy for Coordination Economic Empowerment, Kemenko Pemberdayaan Masyarakat (Coordinating Ministry of Social Empowerment)
• Riza Adha Damanik, Deputy for Micro Business, Ministry of MSMEs
• Nadia Karina, Senior Manager, Abdul Latif Jameel Poverty Action Lab (J-PAL)
• Arryo Harman, Head of Strategic Projects – Public Affairs, Grab
• Hadi Rahman, Founder Business Solutions Advisor, CORE Indonesia (Center of Reform on Economics)
• Oskar Syahbana, CEO, Vidavox
• Rizka Khairunissa, Junior Expert Officer, President Communication Office
• 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:

1. Changes in governance reflect Indonesia’s proactive approach in promoting sustainable digital transformation

Indonesia has undertaken significant governance reforms to keep pace with its rapidly evolving digital economy. The establishment of the Ministry of Communication and Digital Affairs marks a major restructuring effort aimed at improving coordination and oversight of digital policies. Other initiatives include the reorganisation of key ministries, the creation of dedicated digital infrastructure programs, and the implementation of regulatory frameworks for AI governance, cybersecurity, and consumer protection. The government has also utilised digital platforms as a means to enhance service delivery for key government programmes. For instance, the Sautusehat digital health app facilitates the delivery of government backed medical checkups for citizens. These efforts underscore Indonesia’s commitment to fostering a resilient digital ecosystem that balances innovation with regulatory safeguards

2. Research and knowledge sharing drive digital innovation and policy effectiveness

Indonesia’s successful digital transformation depends on research-driven policymaking and knowledge-sharing initiatives. This requires improved data collection and interoperability across government institutions and greater linkages between academia, policymakers, and private sector players. Targeted research is also needed in areas like digital finance for MSMEs or the mitigation of AI harms to the workforce. Knowledge institutions are playing a critical role in evaluating digital initiatives to ensure they deliver measurable impact.

3. Public and private sector collaboration are crucial in bridging digital inclusion gaps

Collaboration between the government and private sector is crucial to ensuring that digital innovation translates into inclusive economic growth. The fintech sector offers a strong example, with joint fraud task forces bringing together banks, regulators, and law enforcement to combat financial fraud. Similar partnerships can help bridge the gap between financial literacy and digital inclusion, promote balanced regulatory frameworks that encourage innovation while safeguarding consumers, and expand digital access for MSMEs. For example Grab Indonesia in coordination with local governments, has promoted digital literacy trainings for MSMEs in remote and lesser developed towns and cities. Extending this collaborative approach to other areas such as AI governance will be essential to ensuring that technological advancements benefit all Indonesians.