Summary: Indonesia’s digital transformation has entered a strategic phase that will shape the direction of national economic development through 2030. With more than 212 million internet users and a digital economy growing consistently above 17 percent annually, Indonesia possesses a substantial social foundation and a large digital market. However, maximizing this potential requires a higher degree of digital sovereignty, particularly in terms of controlling infrastructure, data, innovation, and the governance of digital space. This article examines Indonesia’s opportunities and challenges through the IBCDE-R framework, which encompasses six core dimensions: digital infrastructure, business platforms, customer platforms, data ecosystems, economic context, and regulatory systems. The analysis indicates that despite structural barriers such as connectivity gaps, dependence on foreign technology, data fragmentation, and weak policy coordination, Indonesia also benefits from major enablers, including the expansion of 5G networks, the development of tier-4 National Data Centers, a rapidly growing startup ecosystem, rising levels of digital literacy, and the government’s commitment to regulatory reform. Indonesia has also formulated strategic initiatives for 2026–2030, including the strengthening of sovereign cloud systems, cross-industry Open API integration, a national digital literacy program, the establishment of a digital venture fund, and the planned creation of a National Digital Authority as the central institution for coordinating digital policy. Overall, the article argues that Indonesia holds significant potential to become a major digital economy in the region if it can overcome structural constraints and consistently implement its digital sovereignty strategy. Digital sovereignty is not merely about technological capability but about cultivating an inclusive, sustainable, and autonomous ecosystem that ensures digital progress directly contributes to societal welfare.
Introduction
Indonesia stands at a
pivotal moment in its economic transformation. Over the past decade, rapid
digitalization has generated new socio-economic patterns, reshaping how
citizens interact, work, consume, and access services. With more than 212
million Indonesians connected to the internet in 2023, the country has emerged
as one of the world’s largest digital markets. This reflects the rise of a
society that is increasingly integrated into the global digital ecosystem,
where daily activities, shopping, working, learning, transacting, and accessing
public services, are progressively mediated through digital channels.
