Indonesia is preparing to launch the Indonesia Open Network (ION), a state-backed digital infrastructure designed to democratize its digital economy and reduce barriers for micro, small, and medium enterprises (MSMEs) (21/05).

Indonesia to Launch Indonesia Open Network (ION) in July 2026

Indonesia is set to launch the Indonesia Open Network (ION) in July 2026 as a major digital public infrastructure initiative aimed at reshaping its online commerce ecosystem.

The system is designed to create an open and interoperable network to support MSMEs and broaden participation in the digital economy.

The launch is positioned as a strategic move to reduce entry barriers in Indonesia’s digital marketplace and make the ecosystem more accessible for a wider range of business stakeholders.

Rosan Roeslani Leads State-Backed Digital Infrastructure Initiative

The initiative is spearheaded by Minister of Investment and Downstream Industry Rosan Perkasa Roeslani, who also serves as CEO of BPI Danantara.

The project is being developed under a state-backed framework to strengthen Indonesia’s digital economy structure.

Rosan stated, “Indonesia is currently building the foundation for a next-generation digital economy—one that is more efficient, open, and capable of reaching a wider range of business stakeholders.”

He also emphasized, “Beyond simply driving technology adoption, this endeavor aims to ensure that our digital economy works for everyone.”

ION Modeled After India’s ONDC Framework

The Indonesia Open Network (ION) is directly modeled after India’s Open Network for Digital Commerce (ONDC), which uses an open and modular structure for digital trade.

This includes separating services such as logistics, payments, and seller platforms into independent components.

The initiative makes Indonesia the second country globally to adopt this type of open-network digital infrastructure, following India’s digital public infrastructure approach.

ONDC India CEO T. Koshy said, “Indonesia is the leader in ASEAN for this initiative,” adding, “What we are building here is a more advanced system, powered by AI, and tailored specifically to meet Indonesia's distinct local market demands.”

Big Tech E-Commerce Platforms Face Structural Shift

The introduction of ION is expected to reshape Indonesia’s e-commerce landscape by challenging existing closed ecosystems dominated by major regional platforms.

The system is designed to reduce high commission structures and lower barriers for market participation.

The government stated that the initiative will dismantle e-commerce monopolies and create a more open digital environment for MSMEs and investors. It is also expected to increase transparency and interoperability across digital services.

India-Indonesia Cooperation Aligns with July 2026 Launch

The rollout of ION is scheduled to align with a high-level state visit by Indian Prime Minister Narendra Modi to meet Indonesian President Prabowo Subianto in July 2026.

The coordination highlights strengthened cooperation between the two countries in digital infrastructure development.

A high-level meeting in Jakarta on May 20, 2026, between Minister Rosan, Indian Ambassador Sandeep Chakravorty, and ION steering committee member Sachin V. Gopalan helped finalize the cross-border framework supporting the initiative.

The government views the launch as part of a broader effort to build a more open and structured digital economy ecosystem in Indonesia.

PHOTO: BERITASATU/FINANCIALNEWSASIA

This article was created with AI assistance.

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