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Economic growth

Indonesia Prioritizes Digital Ecosystem and AI to Accelerate Economic Growth

Strategic Insights

— 2 min read

The Indonesian government has launched an economic policy package with 17 programs aimed at accelerating national economic growth in 2025, including a digital internship program for university graduates. The program aims to accelerate the emergence of new digital talents and strengthen the link between universities and the digital industry. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that digitalization is a sector with exponential growth and will be a major accelerator for the economy. The government is also focusing on strengthening digital-based MSMEs and developing the ASEAN Digital Economy Framework Agreement (DEFA), which is expected to double the ASEAN economy to US$2 trillion by 2030.

Key Takeaways:

  • The Indonesian government has launched a 17-program economic policy package to accelerate national economic growth in 2025, including a digital internship program for university graduates.
  • The digital internship program aims to accelerate the emergence of new digital talents and strengthen the link between universities and the digital industry.
  • The government is prioritizing the strengthening of the digital ecosystem and artificial intelligence (AI) to accelerate national economic growth.
  • The ASEAN Digital Economy Framework Agreement (DEFA) is expected to double the ASEAN economy to US$2 trillion by 2030, with Indonesia's potential contribution of US$500--700 billion.
  • Indonesia has made significant progress in AI, including completing an AI Readiness Assessment with UNESCO and implementing a National AI Strategy focusing on seven areas.
  • The government is strengthening digital infrastructure through 5G networks, the Palapa Ring, base stations, and low-Earth-Orbit satellites.
  • Indonesia is capable of assembling, testing, and packaging semiconductors for export to various countries, and will prioritize mastering chip design to enhance the competitiveness of the Indonesian semiconductor industry.
  • The government aims to create inclusive policies to enable the nation's youth to participate in digital development.

Statistics:

  • 17 programs in the Indonesian government's economic policy package
  • 8 acceleration programs for economic growth in 2025
  • US$2 trillion: expected value of the ASEAN economy by 2030
  • US$500--700 billion: Indonesia's potential contribution to the ASEAN economy by 2030
  • 15 cities: target for the expansion of co-working spaces for digital-based MSMEs
  • 7 areas: focus of Indonesia's National AI Strategy
  • 5G networks, the Palapa Ring, base stations, and low-Earth-Orbit satellites: infrastructure being strengthened by the government to support digital development

Sources:

  • Coordinating Ministry for Economic Affairs, Government Indonesia
  • Coordinating Minister for Economic Affairs Airlangga Hartarto
  • National Committee on Artificial Intelligence (KORIKA)
  • UNESCO
  • ASEAN Digital Economy Framework Agreement (DEFA)

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