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Economy

Indonesia Becomes Second-Largest Digital Investment Hub in ASEAN

31 Jan, 2025
Indonesia Becomes Second-Largest Digital Investment Hub in ASEAN

Indonesia has emerged as the second-largest destination for digital investment in Southeast Asia. Realized investments have reached $21.9 billion, equivalent to approximately Rp355 trillion.

Despite this achievement, Minister of Communication and Digital, Meutya Hafid, believes there is room for improvement. She stated, "Indonesia currently stands as the second-largest destination for digital investment in ASEAN, with a position at $21.9 billion," as reported by investor.id.

This was conveyed during the Beritasatu Outlook 2025 event titled Accelerating Indonesia's Economic Growth: Challenges and Opportunities in the New Era. The event was held in Jakarta on January 30, 2025.

Indonesia controls about 40% of Southeast Asia's total digital economy transaction value. This amounts to $77 billion, primarily driven by e-commerce.

To strengthen economic independence, technological mastery, and human resource development, the government is accelerating digital transformation. This aligns with President Prabowo Subianto's Asta Cita, which emphasizes digitalization as a key factor in economic resilience and public welfare.

In the first 100 days of the cabinet, the government has committed to accelerating digitalization across various sectors. These include artificial intelligence (AI) and the digital economy.

Minister Meutya stated, "AI is now a global competition arena. Indonesia cannot merely be a technology user; we must build an independent and competitive digital ecosystem."

She also emphasized that innovation, strategy, and readiness to adapt are more crucial than the sheer size of investment capital.

The government’s digital transformation efforts focus on three main pillars: inclusivity, empowerment, and trustworthiness. Inclusivity ensures that all societal and industrial layers participate in the digital ecosystem.

Empowerment highlights that technology should provide tangible benefits and drive economic growth. It also aims to prevent misuse, such as online gambling or unauthorized loans.



PHOTO: FREEPIK

This article was created with AI assistance.

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