Indonesia's digital shift: From connectivity to growth and protection

The first two years of the Prabowo-Gibran administration have laid a foundation for Indonesia’s digital transformation.

Denpasar, Bali (ANTARA) - Two years into the Prabowo Subianto-Gibran Rakabuming Raka administration, Indonesia’s digital transformation has reached milestones worth celebrating while also presenting challenges that demand closer evaluation.

Accelerating digital transformation has been a strategic priority for the Red and White Cabinet, involving various ministries and government agencies, including the Ministry of Communication and Digital Affairs.

The administration’s second anniversary on October 20 coincided with Bali Tech Week, held on October 19–23, 2026. The event brought together startups, investors, and technology companies from around the world.

Featuring 13 core tracks covering artificial intelligence (AI), startup development, gaming, cybersecurity, investment, digital infrastructure, and digital economy policy, the event was projected to attract more than 4,000 international participants.

Discussions centered on pressing national priorities: expanding internet access across Indonesia, accelerating digital economic growth, developing technology talent, and protecting citizens in cyberspace.

Addressing these challenges, Minister of Communication and Digital Affairs Meutya Hafid emphasized that the future of Indonesia’s digital ecosystem rests on three core pillars: “Connected, Growing, and Protected” (Terhubung, Tumbuh, dan Terjaga).

These principles reflect a policy direction that goes beyond expanding network coverage to ensuring connectivity drives economic growth and delivers tangible benefits to the public.

“Our main task is no longer just about building connectivity across Indonesia. It is about ensuring that connectivity translates into real growth for the economy, for society, and for the improvement of public services,” Meutya said at the Bali Tech Week 2026 forum in Denpasar, Bali.

Connecting Indonesia

In her remarks, Meutya said around 235 million Indonesians had access to the internet, representing a penetration rate of 81.72 percent.

Indonesia’s 4G network now covers 98.96 percent of the population, while average mobile broadband speeds have reached 84 megabits per second (Mbps). Average fixed broadband speeds currently stand at 67 Mbps.

The government aims to raise average fixed broadband speeds to 100 Mbps by 2029 while narrowing the internet quality gap between Java and Indonesia’s eastern regions.

To achieve this target, the government is opening up the 1.4 GHz frequency band for fixed wireless access (FWA) technology. FWA is expected to deliver internet speeds of up to 100 Mbps at affordable monthly prices ranging from Rp100,000 (around US$5.53) to Rp150,000 (around US$8.29).

The government also plans to deploy the 700 MHz and 2.6 GHz frequency bands to expand network coverage, including 5G services, in rural areas.

The Ministry of Communication and Digital Affairs is also exploring cooperation with the Ministry of Energy and Mineral Resources to use power infrastructure as a backbone for telecommunications networks.

Expanding access provides a critical foundation for digital economic growth. However, challenges remain in ensuring that people can make full use of connectivity in education, entrepreneurship, public services, and innovation.

Driving the growth

The Ministry of Communication and Digital Affairs estimates that Indonesia’s digital economy reached US$99 billion in 2025, the largest in Southeast Asia. Speaking at Bali Tech Week, Meutya said the figure was projected to rise to US$360 billion by 2030.

The digital economy is expected to expand further as regional cooperation deepens through initiatives such as the Digital Economy Framework Agreement (DEFA).

According to Meutya, the landmark agreement could add US$600 billion to ASEAN’s digital economy beyond baseline projections, potentially bringing the region’s total digital economic potential to more than US$2 trillion.

Despite its vast domestic market, Indonesia still needs to increase the number of startups, develop competitive local talent, attract investment, strengthen research, and foster closer cooperation between industry and academia.

To strengthen the ecosystem, the government has developed Garuda Spark Innovation Hubs, which are operating in 10 major cities. The initiative aims to expand to more cities and districts, bringing together startups, investors, academics, technology companies, and communities.

Over the past two years, the hubs have conducted 178 programs, trained 15,000 digital talent participants, supported the development of 80 startups, and engaged 80 partners. They have also secured investment totaling Rp429.5 billion (around US$23.7 million).

Strengthening the domestic gaming industry is another key strategy for expanding the digital economy. According to Meutya, at least 339 game studios currently operate in Indonesia.

In this regard, Bali Tech Week served as a platform for connecting local industry players with international game publishers, with the aim of improving the global competitiveness of Indonesia’s creative products.

Safeguarding the space

Digital economic growth depends on two key foundations: public trust and regulatory certainty.

Innovation needs to advance alongside public protection, while businesses require clear legal frameworks to support long-term investment.

“Growth requires trust. The public needs to feel safe when using digital services, and businesses need clarity regarding the limits of their responsibility,” Meutya said.

As a concrete step, the government has pledged to involve industry players in policy consultations. The approach is intended to keep regulations responsive to rapid technological change while safeguarding the broader public interest.

Protecting children in the digital environment is a key government priority, supported by the issuance of a government regulation on electronic system governance for child protection, known as PP TUNAS. Since the regulation took effect in March 2026, the Ministry of Communication and Digital Affairs has reported that several high-risk platforms have blocked or deactivated millions of accounts belonging to underage users.

However, the government emphasizes that the effectiveness of child protection cannot be measured solely by the number of deactivated accounts.

Technology companies are being urged to adopt a safety-by-design approach, integrating safeguards into products and services from the outset rather than relying primarily on responses after harm occurs.

On the enforcement front, the ministry reported removing 5.15 million pieces of harmful online content between October 2024 and September 11, 2026. More than 4 million of those items were related to online gambling, highlighting the scale of the challenge facing Indonesia’s digital regulators.

Beyond removing harmful content, the ministry is urging mobile operators to strengthen user identity verification through biometric checks. Although around 31.1 million users have reportedly undergone biometric verification, the ministry stresses that broader implementation must be accompanied by robust personal data protection.

Three key priorities

As the Prabowo-Gibran administration enters its third year, the Ministry of Communication and Digital Affairs has identified three main priorities: AI governance, digital talent development, and personal data protection.

These priorities are intended to ensure that digital transformation is inclusive, sustainable, and beneficial to society.

On AI development, Indonesia maintains that it must determine its own pace and direction based on national interests rather than simply following international competition or becoming dependent on global technology giants.

This approach must take into account workforce readiness, infrastructure capacity, and energy availability.

“Indonesia must firmly believe that our pace should not be set by other countries or tech companies. We must determine it independently,” Meutya said.

One emerging challenge is ensuring sufficient energy supplies to support data centers and AI development.

Because high-performance digital infrastructure requires reliable electricity, long-term planning is essential to prevent rising technology investment from placing additional strain on domestic energy supplies.

To address this issue, the ministry has proposed developing AI factories and data centers through an integrated approach involving multiple ministries and agencies.

The goal is to coordinate technology, energy, infrastructure, and investment policies.

Indonesia must also improve the quality of its digital workforce to avoid remaining merely a consumer market for foreign technology products.

Education, training, and domestic research need to be strengthened to develop expertise in artificial intelligence, data analytics, cybersecurity, and software engineering.

At the regional level, cooperation among ASEAN member states is crucial to expanding digital markets, harmonizing regulations, and strengthening cybersecurity.

The participation of international representatives at Bali Tech Week 2026 underscored the importance of global partnerships in the digital economy.

Ultimately, progress in internet penetration, startup investment, and harmful-content removal must translate into tangible benefits for the public. Improving network quality across regions, creating jobs, strengthening domestic industries, and protecting personal data will require sustained attention.

The first two years of the Prabowo-Gibran administration have laid a foundation for Indonesia’s digital transformation.

As the administration enters its third year, the ultimate measure of progress will be not simply how many people are connected to the internet, but how effectively the country converts connectivity into productivity, investment into economic value, and innovation into safe and useful services for its people.

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