Indonesia targets the implementation of the ASEAN Digital Economy Framework Agreement (DEFA) to begin in 2026, aiming to significantly boost regional digital integration. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that ASEAN’s 14th round of negotiations is expected to achieve 70% progress toward finalizing the agreement. With a combined population of 680 million and a digital economy valued at USD 263 billion in 2024, ASEAN is one of the most dynamic digital markets globally. DEFA could potentially double ASEAN’s projected digital economy value from USD 1 trillion to USD 2 trillion by 2030, provided its implementation is optimal across all member states.
Indonesia remains a key driver, with its digital economy reaching USD 90 billion in 2024 and projected to grow to USD 360 billion by 2030—mainly supported by e-commerce, which is expected to contribute USD 150 billion. Five priority chapters in the DEFA negotiations have been identified: digital financial services, WTO-based electronic transmissions, non-discriminatory treatment of digital products, submarine cable management, and flexible electronic payment systems. Airlangga acknowledged regional challenges such as regulatory gaps and limited SME capacity for cross-border trade. DEFA will be adapted to national regulations in each of the 10 ASEAN countries, with Timor Leste allowed extra time for alignment due to its recent entry process into ASEAN.
