Indonesia is advocating for stronger emphasis on the digital economy in discussions to improve the ASEAN-Korea Free Trade Agreement (AKFTA). The government sees the digital sector as a key driver for future growth and competitiveness, and believes that by incorporating digital economy considerations into trade agreements like AKFTA, it can unlock new opportunities for innovation, e-commerce, and digital services. Officials argue that as global trade rapidly evolves, integrating digital infrastructure, standards, and regulatory cooperation is essential. Emphasizing digital economy issues in AKFTA is seen not just as beneficial for business and trade, but also as a way to promote inclusive economic development across sectors—ensuring small and medium enterprises (SMEs) and less digitally-advanced regions are able to participate and benefit.

Indonesia’s push reflects a broader regional and global trend: trade agreements increasingly include chapters or provisions on digital trade, data protection, cross-border data flow, and technology cooperation. By placing the digital economy front and center, Indonesia hopes to strengthen its position in ASEAN-Korea relations, modernize its trade frameworks, and ensure that future agreements better address 21st-century economic realities.

Source: https://industri.kontan.co.id/news/indonesia-dorong-ekonomi-digital-jadi-isu-utama-peningkatan-akfta