Indonesia Digital Transformation
With a population of over 280 million, Indonesia offers vast opportunities for U.S. businesses with its digital transformation. The country’s digital economy is projected to reach $146 billion by 2025, driven by rapid growth in Artificial intelligence (AI), fintech, digital infrastructure and Software-as-a-Service (SaaS) platforms.
AI is emerging as a key driver of economic growth, particularly in manufacturing and logistics, where automation is improving efficiency and productivity. AI adoption in Indonesia is expected to increase by 30% by 2025, further accelerating the digital economy’s impact on overall economic development. AI is considered a cornerstone of Indonesia’s digital transformation, yet the country remains in the early stages of adoption.
With over 180 million smartphone users and internet penetration reaching 79% in 2024, Indonesia’s fintech industry is experiencing rapid advancements. Strong government support and backing is also fostering financial innovation and inclusion. As a leader in ASEAN’s fintech expansion, Indonesia plays a crucial role in shaping regional digital policies, including discussions on the ASEAN Digital Economy Framework Agreement (DEFA). This framework aims to advance AI adoption, facilitate cross-border payment solutions, and promote best practices in financial innovation across the region.
The Indonesian Ministry of Communication and Digital Affairs (KOMDIGI) is spearheading the country’s digital transformation through digital infrastructure investments and expanding connectivity in underserved regions.
These efforts align with Indonesia’s broader Golden Indonesia 2045 vision to become a leading digital economy. As part of this transformation, 5G network expansion seeks to accelerate nationwide to enhance digital connectivity, boost economic productivity and enable innovations such as smart cities and Industry 4.0 applications. Additionally, AI development is a national focus with the government implementing governance frameworks and investing in AI-driven solutions to optimize public services, improve cybersecurity and drive technological advancements across industry.
To stay competitive, the Indonesian government is fostering partnerships with global tech leaders and encouraging local industries to innovate. A World Bank study estimates that Indonesia will need an additional 9 million digital talents by 2030 to sustain its digital economy’s growth. To develop a skilled workforce, KOMDIGI has launched the Digital Talent Scholarship (DTS) program, aiming to train over 100,000 professionals in fields such as AI, cybersecurity, and data analytics.
Indonesia’s commitment to digital transformation and AI adoption presents significant opportunities for U.S. businesses in technology, fintech, and digital infrastructure. Companies specializing in AI solutions, cybersecurity, cloud computing, and digital finance can leverage Indonesia’s expanding digital ecosystem and collaborate with government and private-sector stakeholders to drive innovation.
For more information, contact Yulie Tanuwidjaja, Commercial Specialist at the U.S. Embassy in Jakarta, at Yulie.Tanuwidjaja@trade.gov