Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced that Indonesia ranked second as a digital investment destination in Southeast Asia in 2023, with digital economy investments reaching USD 22 billion. While still trailing Singapore, which absorbed USD 141 billion in investments, Indonesia has surpassed Vietnam and Malaysia, which recorded USD 18 billion and USD 17 billion, respectively. "Indonesia is the second largest destination for digital investments, approaching USD 22 billion, just after Singapore. Singapore acts as a hub by distributing investments, but Indonesia's investments are directly coming into the country in 2023," Airlangga said during his speech at the FEKDI and Karya Kreatif Indonesia (KKI) 2024 in Jakarta on Thursday (August 1, 2024). Airlangga attributed this achievement to efforts in expanding digital payment systems and highlighted Indonesia's improved competitiveness, which climbed 11 ranks to 45th position in 2023, a notable progress from 56th in 2019. He also noted that the positive trend in digital technology adoption in ASEAN in 2022 contributed to the region's digital economy value, which reached USD 194 billion, with Indonesia accounting for 40%.
President Joko Widodo also emphasized the importance of leveraging all available instruments to sustain growth amid global economic uncertainty, particularly in the digital economy sector. "I have repeatedly highlighted the future potential of Indonesia's digital economy. The digital economy is expected to grow fourfold by 2030, reaching USD 210 billion to USD 360 billion, or IDR 5,800 trillion," Jokowi explained. Google projects Indonesia's digital economy to reach USD 146 billion by 2025, making it the largest in Southeast Asia. This trend presents promising opportunities for businesses in this segment, with digital economy growth not only in e-commerce but also in investment and financial inclusion, making investment activities more accessible and the capital market more inclusive.
