Indonesia’s digital economy is demonstrating remarkable resilience and growth, with the latest East Ventures – Digital Competitiveness Index (EV-DCI) 2025 report unveiling a consistent upward trajectory across the archipelago.

This sixth edition of the report, a collaborative effort by East Ventures and Katadata, reaffirms Indonesia’s path towards digital economic prosperity and its ambition to achieve “Golden Indonesia 2045”.

Consistent growth and narrowing gaps

The EV-DCI 2025 findings are overwhelmingly positive, with the median score increasing by 0.7 points to 38.8. This consistent annual improvement since the report’s inception five years ago underscores the ongoing expansion of Indonesia’s digital economy.

Also Read: The great decline: How Indonesia’s tech funding hit a 3-year low

Furthermore, the digital divide between regions is steadily narrowing, evidenced by a decrease in the standard deviation of scores between provinces, from 10.6 in 2024 to 9.7 in 2025. The gap between the highest and lowest scoring provinces has also shrunk from 60.4 to 56.9, signalling progress towards greater regional digital equity.

In a testament to nationwide development, 34 out of 38 provinces recorded an improvement in their DCI score, with only four experiencing minor declines. This suggests that provinces previously lagging are now actively closing the gap with digitally leading regions, reflecting a broader trend towards more inclusive development. This is a crucial insight for foreign investors and startups, as it indicates a widening base for digital adoption and economic activity beyond traditional urban centres.

Foundation for future prosperity

The report reinforces the belief that strategic investments in digital infrastructure, targeted literacy programmes, and inclusive policy initiatives have been pivotal in empowering more regions to participate in the digital economy.

Looking ahead, technological innovations such as Artificial Intelligence (AI), Internet of Things (IoT), blockchain, and 5G are expected to further enhance the nation’s digital competitiveness. These technologies are not merely drivers of digital transformation but are also instrumental in accelerating productivity and enabling more thoughtful decision-making across various sectors.

This forward-looking approach positions Indonesia as an attractive hub for deep-tech innovation and deployment, particularly for Singapore-based startups looking to expand their footprint in Southeast Asia.

Digital economy’s expanding contribution

Indonesia’s digital economy continues its rapid ascent, with its Gross Merchandise Value (GMV) reaching US$90 billion by 2024, marking a 13 per cent increase compared to 2023. This growth was predominantly fuelled by the sustained adoption of digital technologies and a surge in online transactions, with e-commerce remaining a primary driver.

The digital sector’s contribution to Indonesia’s Gross Domestic Product (GDP) reached 4-5 per cent in 2024. The government has set an ambitious target to increase this contribution to 20 per cent of GDP by 2045, firmly establishing the digital economy as a key pillar of the national economic framework. This ambitious target, coupled with an internet penetration rate projected to approach 82 per cent (over 230 million users) by 2025, according to the Indonesian Internet Service Providers Association (APJII), paints a picture of a robust and expanding digital market.

Also Read: Indonesia’s AI adoption lags despite growing digital economy, says East Ventures report

Such consistent progress, despite global economic uncertainties and rising geopolitical tensions, solidifies Indonesia’s competitive edge and underscores the vast opportunities available within its burgeoning digital landscape.

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A wave of cautious hope surrounding a potential Russia-Ukraine ceasefire has buoyed global risk sentiment, propelling US stock markets to their strongest weekly performance since June. The S&P 500 climbed 0.8 per cent, the Nasdaq surged one per cent, and the Dow Jones edged up 0.5 per cent, primarily driven by a rally in big technology stocks. This optimism stems from reports of diplomatic engagements, including a confirmed meeting between Presidents Vladimir Putin and Donald Trump, which has sparked speculation about a possible de-escalation in the Russia-Ukraine conflict.

Such a development could alleviate a significant geopolitical overhang, fostering a more favourable environment for risk assets. This positivity is tempered by uncertainties in US monetary policy, trade dynamics, and the evolving role of cryptocurrencies, particularly stablecoins, in reshaping global finance.

The US stock market’s recent gains reflect a broader market narrative of resilience amid geopolitical and economic crosscurrents. The technology sector, a perennial driver of market momentum, has been at the forefront, with companies like Nvidia and AMD playing pivotal roles. Reports indicate that these chipmakers have agreed to remit 15 per cent of their China chip sales revenue to the US government to secure export licenses, a move that underscores the intricate balance between national security and economic interests.

This agreement, while facilitating continued access to the lucrative Chinese market, has sparked debate about its legality under the US Constitution, which prohibits export taxes. Critics argue it could set a precedent for unconventional trade policies, while supporters view it as a pragmatic compromise to maintain technological competitiveness. The deal highlights the strategic importance of semiconductors in global trade, particularly as tensions between the US and China intensify. Despite these complexities, the tech-driven rally in US equities signals investor confidence in the sector’s long-term growth prospects, even as trade uncertainties loom.

In the bond market, US Treasuries experienced a decline last Friday, with yields rising by 3 to 5 basis points across the curve in a subdued trading session. Investors remain focused on the Federal Reserve’s leadership transitions, particularly President Trump’s nomination of Stephen Miran, Chairman of the Council of Economic Advisers, for a Fed governor role. This appointment has fuelled speculation about a potential shift toward a more dovish monetary policy stance, as Miran’s economic philosophy aligns with Trump’s preference for lower interest rates to stimulate growth.

The US Dollar Index, which dipped 0.22 per cent, later recovered some ground following this news, reflecting market sensitivity to Fed leadership changes. The anticipation of upcoming inflation data, with the Consumer Price Index (CPI) report due on Tuesday and the Producer Price Index (PPI) report on Thursday, adds another layer of complexity.

Federal Reserve Chair Jerome Powell’s recent comments at the Federal Open Market Committee meeting, suggesting that a September rate cut is less likely and will hinge on macroeconomic data, have tempered expectations for immediate easing. These reports will be critical in shaping the Fed’s policy trajectory, as persistent inflationary pressures could force a more hawkish stance, impacting both equity and bond markets.

Also Read: ASEAN’s regionalism strategy: Building unity in a depolarised world

Geopolitical and policy developments have also swayed commodity markets. Gold prices surged to nearly US$3,400 per ounce after a US government agency ruled that gold bars would be subject to duties, triggering volatility in bullion markets. The White House’s promise of a forthcoming clarification has done little to quell uncertainty, as investors grapple with the potential cost implications for gold as a safe-haven asset.

Meanwhile, Brent crude prices remained unchanged after a volatile session, reflecting the market’s indecision amid ceasefire optimism and ongoing geopolitical risks. The stability in oil prices suggests a wait-and-see approach, as traders assess whether reduced tensions in Eastern Europe could ease supply concerns or if other global factors, such as US tariffs, might sustain price pressures.

In Asia, equity indices opened with mixed performance, signalling varied regional responses to global developments. US equity index futures, however, point to a positive opening, suggesting that the momentum from last week’s rally may persist. This divergence underscores the fragmented nature of global risk sentiment, where local economic conditions and policy responses shape market outcomes.

For instance, Hong Kong’s Hang Seng index has benefited from a recovery in Chinese technology stocks, driven by President Xi Jinping’s public engagement with tech leaders, signalling a potential easing of regulatory pressures. This contrasts with mainland China’s more subdued market performance, highlighting the nuanced dynamics within Asian markets.

The cryptocurrency market has emerged as a focal point of investor enthusiasm, propelled by significant policy shifts in the US Bitcoin soared past US$121,000, and Ethereum reached US$4,300, fuelled by President Trump’s executive order exploring the inclusion of cryptocurrencies in 401(k) retirement accounts. This move, which also considers private equity, could unlock substantial demand by opening millions of American retirement portfolios to higher-risk assets.

Spot Ethereum exchange-traded funds (ETFs) have outpaced Bitcoin ETFs, attracting US$461 million in inflows over the past week, reflecting robust institutional interest. Ethereum’s price, now 11 per cent below its all-time high of US$4,878, may continue to outperform Bitcoin if these inflows persist. The influence of large corporate treasuries, as noted by industry expert Anndy Lian, underscores their role in driving price action. Lian’s assertion that investors should remain steadfast as long as these treasuries continue buying highlights the market’s reliance on institutional momentum.

Also Read: From dollars to digital coins: Tariffs shake the financial world

Stablecoins, a subset of cryptocurrencies pegged to assets like the US dollar or Bitcoin, are reshaping the competitive landscape between the US and China. In Hong Kong, new legislation aims to position the city as a global hub for stablecoins and Web3 technologies, which leverage blockchain for decentralised internet applications. This strategic pivot seeks to restore Hong Kong’s stature as a financial powerhouse amid intensifying global competition.

In the US, the Trump administration’s embrace of cryptocurrencies, bolstered by campaign support from crypto advocates, signals a proactive approach to integrating digital assets into mainstream finance. The passage of stablecoin regulations in both jurisdictions underscores their potential to revolutionise global finance by offering stable, blockchain-based alternatives to traditional currencies. This rivalry carries risks, as stablecoins could disrupt monetary policy frameworks and challenge the dominance of fiat currencies like the dollar and renminbi.

From a personal perspective, the convergence of these developments paints a picture of a world at a financial crossroads. The optimism surrounding a potential Russia-Ukraine ceasefire offers a glimmer of hope for stabilising global markets, but the path forward remains fraught with uncertainty. The US stock market’s resilience, driven by technology giants, reflects a broader trend of innovation outpacing geopolitical and economic headwinds. The reliance on tech stocks raises concerns about market concentration and vulnerability to sector-specific shocks.

The Federal Reserve’s cautious stance on rate cuts, coupled with upcoming inflation data, suggests that monetary policy will remain a critical determinant of market direction. The cryptocurrency surge, particularly in stablecoins, signals a transformative shift toward decentralised finance, but it also introduces new risks, including regulatory ambiguity and market volatility. The US-China rivalry over stablecoins and Web3 technologies underscores the strategic importance of digital innovation, but it also highlights the potential for economic fragmentation if competitive tensions escalate.

As markets continue to evolve, adaptability and informed decision-making will be paramount in capitalising on emerging opportunities while mitigating inherent uncertainties.

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Nibertex, a Singapore- and Philippines-based deeptech startup specialising in waterproof breathable membranes, has closed its US$7 million Series A funding round led by TNB Aura, with participation from existing investors Asian Development Bank (ADB), Faircrest Holding, and Foxmont Capital Partners.

This round comes nearly seven months after the firm announced closing its pre-A round in February with Foxmont and ADB.

Also Read: Korean brothers’ startup Nibertex develops chemical-free fabric for sustainable textiles

The news funding will be deployed across several key areas to meet the rapidly expanding market demand:

• Expanding manufacturing capacity: Capital expenditure will be deployed to significantly increase output.
• Advancing R&D: Accelerating the development of membrane applications for industries beyond apparel.
• Deepening market reach: Scaling go-to-market efforts and securing strategic partnerships with global brands.

The investment comes at a crucial time as the global materials industry faces intense scrutiny over per- and polyfluoroalkyl substances (PFAS). These synthetic chemicals are commonly found in products such as rain jackets, activewear, medical gowns, food packaging, and non-stick cookware, where they provide water and stain resistance.

However, PFAS are now widely recognised for their persistence in the environment and are linked to serious health concerns.

With bans accelerating across the US, European Union, and Asia-Pacific, manufacturers are under increasing pressure to find high-performance alternatives. Nibertex addresses this critical challenge with its proprietary electrospinning, also known as nanospinning, technology and formula.

Founded in 2019 by Jae H Park and his brother Jae M, Nibertex has developed a proprietary manufacturing process enabling scalable production of its PFAS-free membranes. These membranes are engineered to be ultra-soft, silent, stretchable, and designed to disappear into the textile. They are ideal for various applications, including performance apparel, healthcare, industrial, and consumer products.

Also Read: Nibertex secures funding for sustainable textile technology

Nibertex’s success is indicative of a broader industry shift towards sustainable manufacturing practices and stricter regulatory compliance within the textile sector. As governments worldwide implement more stringent PFAS regulations, companies like Nibertex, which offer proven alternatives, are becoming increasingly valuable to manufacturers seeking to future-proof their operations.

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In 2024, global IT and digital transformation provider Softline Group expanded into Southeast Asia by opening new offices in Indonesia and Vietnam. These moves were part of a broader international strategy, reflecting the company’s commitment to long-term regional engagement across Southeast Asia, Central Asia, and the Middle East. This also includes new offices in Kazakhstan, Uzbekistan, and the UAE.

With a population of over 680 million and strong economic growth, Southeast Asia presents significant opportunities for innovation. Governments across the region are driving digital transformation through national programs. At the same time, businesses face growing demand for connected services and secure digital infrastructure.

Ivan Gorkovenko, Ivander Hery, and Hans Saiya from Softline Group discuss their expansion strategy, the importance of localization, and how technologies like AI and cybersecurity are shaping the region’s future below.

Inside Softline’s expansion across Southeast Asia

Softline’s entry into Southeast Asia was driven by both strategic foresight and local opportunity. “Southeast Asia was not just a next step – it was a deliberate choice,” said Ivan Gorkovenko, Regional Director for Southeast Asia. “We saw unmatched growth potential in areas like digital payments, e-commerce, and public sector modernization.”

The company’s investments in Vietnam and Indonesia were aligned with major national agendas like Making Indonesia 4.0 and Vietnam’s National Digital Transformation Program, both of which aim to build robust digital ecosystems. “With 680M people and 5%+ GDP growth, SEA is not just a growth market – it’s a digital innovation hub,” Gorkovenko added.

Localization in action: Adapting to regulatory and infrastructure needs

As regional adoption of digital tools accelerates, Softline emphasizes local relevance through language, infrastructure, and compliance. “We don’t just translate the interface,” said Ivander Hery, Sales Manager. “We ensure compliance with regulations such as Indonesia’s Law No. 27 of 2022 on Personal Data Protection.”

To meet varying requirements, Softline has adapted its security audit framework to match the standards of Indonesia’s Badan Siber dan Sandi Negara (BSSN) or national cyber and crypto agency. It also deployed hybrid cloud systems in Vietnam, ensuring full compliance with the Personal Data Protection Act (PDPA).

This localized approach is also reflected in how services are delivered. “Clients can access any Softline service tailored to their specific stage in the business lifecycle,” Hery noted, referencing sectors like government, healthcare, and education.

Also read: ASEAN’s regionalism strategy: Building unity in a depolarised world

Supporting digital transformation across urban and remote areas

Beyond urban centers, Softline is focused on closing gaps in access and capacity. “We want to be a key player in enabling Indonesia to achieve its digital transformation goals and ensure that technology benefits everyone, even in the most remote areas,” Hery said.

The company is working with local partners on efforts such as localized Security Operations Centers (SOCs), training programs in Bahasa Indonesia and Vietnamese, and community-based digital literacy centers. These efforts align with broader national goals, including Indonesia Golden 2045.

The digital economy boom: Opportunities in a thriving SEA market

Southeast Asia’s digital economy is growing at 17 percent annually and could reach $295 billion by 2025. According to Gorkovenko, this growth is reshaping customer expectations: “Businesses and consumers alike are now expecting seamless, omnichannel experiences… hyper-personalization, phygital engagement, and secure digital payments.”

With digital platforms like Grab, Shopee, and Gojek setting new standards, companies are seeking scalable, API-first infrastructure. Softline is responding with unified commerce solutions and AI-powered tools that connect physical and digital operations.

Still, infrastructure gaps in markets like Indonesia present challenges. “The pace of change is relentless… technology adoption is now a key driver of growth and competitiveness in the region,” Gorkovenko said.

Championing technological sovereignty through local innovation

Countries like Indonesia and Vietnam are increasingly focused on technological sovereignty. They are developing their own digital infrastructure and reducing dependence on foreign platforms. “It is about strategic autonomy,” said Hery, “the ability to control your own digital destiny.”

Softline supports this through compliance-first solutions, domestic infrastructure, and partnerships with agencies like Indonesia’s BSSN and Vietnam’s Authority of Information Security (AIS). “We apply global frameworks but adjust them to local encryption norms, compliance laws, and talent realities,” explained Hans Saiya, Cybersecurity Solution Sales Manager.

Softline is also investing in inclusive access through public-private partnerships, affordable tech programs, and national initiatives like Bangga Buatan Indonesia and Make in Vietnam.

Also read: Indonesia’s digital index rises again, regional gaps narrow

Cybersecurity first: Building stronger defenses through technology and training

For Softline, cybersecurity is a central pillar of its strategy. The company deploys real-time Security Operations Centers in collaboration with local Managed Security Services Providers (MSSPs). It also integrates its services with national cybersecurity guidelines.

But defense is not just about technology. “Even the best security technology can falter without proper awareness among staff,” Saiya said. Softline offers role-specific training programs that include simulations, phishing tests, and risk-based assessments. “Our training targets the exact threat landscapes that correspond to each role,” he added.

These efforts are designed to strengthen security cultures while supporting compliance with frameworks like ISO 27001, GDPR, and PCI-DSS.

Looking ahead: Softline’s vision for a smarter, more connected SEA

Softline’s goals over the next three years include raising brand visibility, expanding innovation clusters, and continuing to localize cutting-edge solutions. “We are already actively investing in regional marketing and participating in major trade shows,” said Gorkovenko.

By aligning its efforts with both government policy and business demand, Softline is aiming to become a long-term partner in shaping Southeast Asia’s digital future. In doing so, they are connecting global innovation with local transformation.

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Featured Image Credit: Softline

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The Asia Pacific region is emerging as a significant force in the global quantum computing market, fuelled by rapid government intervention, strategic funding, and the formation of new startup hubs.

While the US continues to dominate quantum tech investment—capturing approximately 78 per cent of the global total in 2024—Asia Pacific is accelerating its pace, both in funding commitments and in research capabilities.

Countries such as Japan, Australia, South Korea, Singapore, and China increasingly position themselves as competitive players where cutting-edge hardware, advanced algorithms, and secure communication networks will define technological leadership.

According to McKinsey’s Quantum Technology Monitor 2025, targeted public investments and emerging entrepreneurial clusters shape Asia Pacific’s growth. In 2024 alone, five of the world’s 19 newly founded quantum tech startups originated from Asia.

This growth is driven by national quantum strategies and strategic partnerships designed to scale capabilities in quantum computing and related fields. Governments across the region are focusing on building sovereign capabilities, attracting global talent, and fostering cross-border collaborations.

Japan leads regional public funding announcements

Japan has made one of the most significant public funding pledges globally for quantum tech, committing US$7.4 billion in 2025 towards next-generation chip and quantum computing research. This ambitious move signals Japan’s intention to play a defining role in research and commercial deployment, particularly in high-performance and fault-tolerant quantum systems.

Also Read: AppWorks turns 15: Showcasing SEA’s next-gen AI, Web3, deep tech startups

The scale of this funding underscores Japan’s long-term commitment to becoming a hub for advanced computing innovation, with implications for sectors ranging from materials science to secure communications.

Australia accounted for roughly eight per cent of global quantum tech startup investment in 2024, bolstered by a high-profile US$620 million package from the Australian Commonwealth and Queensland governments. The funding supports PsiQuantum, a US-based quantum hardware manufacturer, in building a utility-scale, fault-tolerant quantum computer in Brisbane.

This project is expected to enhance Australia’s role as a location for large-scale quantum infrastructure while strengthening ties with international industry leaders.

South Korea is pursuing a long-term national goal to become a global leader in quantum science and tech. Its US$2.3 billion investment plan, which spans 2035, aims to build domestic capabilities in quantum computing, quantum communication, and quantum sensing. This approach positions the country for technological competitiveness and potential export opportunities in a rapidly evolving market.

Singapore, meanwhile, has taken a targeted approach through its National Quantum Strategy, allocating about US$222 million over five years. This funding is focused on quantum research, infrastructure development, and talent training, aiming to maintain Singapore’s role as a research and innovation hub within Southeast Asia.

The strategy also emphasises partnerships between academia, government, and industry to drive adoption.

China remains a unique case in the Asia Pacific quantum computing landscape. Although commercial investment data for Chinese startups is limited, the country leads globally in quantum computing-specific patent applications, accounting for about 32 per cent of filings worldwide, surpassing the US share of around 22 per cent.

Also Read: Nibertex bags US$7M to push boundaries in breathable waterproof materials

Government investment in quantum research and development exceeds US$15 billion, strongly focusing on defence, national security, and artificial intelligence applications. Much of this activity is concentrated in government-funded research institutions with limited public disclosure.

Changing global investment dynamics

Globally, investment in quantum tech startups grew by about 50 per cent year-on-year to reach US$2 billion in 2024, up from US$1.3 billion in 2023.

Over 80 per cent of this funding was directed toward quantum computing, with superconducting tech receiving the largest share, followed by photonic networks. The top two global deals—PsiQuantum’s US$624.63 million round and Quantinuum’s US$300 million raise—accounted for nearly half of the total value, underlining the concentration of capital in a small number of high-profile ventures.

Public funding now accounts for 34 per cent of all quantum technology investment, up from 15 per cent in 2023, reflecting growing government interest in supporting early-stage and high-risk ventures.

Investors are increasingly shifting their attention toward emerging startups that are less than four years old and mature companies with proven tech, while scaling-stage ventures attract less relative interest.

In 2024, most new startups globally emerged in the components and application software segments, highlighting a shift in value creation toward software development while maintaining steady demand for hardware-agnostic components. This diversification suggests that complementary solutions and integration tools will play a larger role in commercial ecosystems as quantum computing tech matures.

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Image Credit: Nicolas Arnold on Unsplash

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