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.
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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.
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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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