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Navigating global dynamics, discovering economic opportunities for the new administration
Experts predict that ASEAN will emerge as the fastest-growing area in the world over the next decade, driven by foreign investment, export competitiveness, infrastructure advancements and demographic trends that support domestic demand-led growth in consumer markets.
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A worker supervises loading and unloading services on March 28, 2023 at the Jakarta International Container Terminal in Tanjung Priok, North Jakarta. According to a recent Statistics Indonesia (BPS) report, Indonesian exports grew 7.13 percent year-on-year in September 2024 to US$23.56 billion, the highest figure since December 2022. (AFP/Adek Berry )
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s the world grapples with a fragmented economy shaped by technological revolutions, climate change, pandemic recovery and geopolitical tensions, Indonesia finds itself at a pivotal crossroads.
The ongoing conflicts in the Middle East and Europe, combined with shifting industrial and trade policy dynamics among developed nations, have necessitated a reevaluation of global and regional supply chains. In this landscape, to initiate and sustain economic growth processes, governments are increasingly focusing on the development of sectors related to the digital economy, energy, health and life sciences, sustainability and essential infrastructure.
ASEAN remains a cornerstone of regional economic collaboration and integration in Asia, acting as a central hub for member states and their trade and investment partners shaping the evolution of Asia’s regional trade and financial architecture. ASEAN’s globally competitive positioning in the global value chains of numerous industry sectors enables it to play key roles in enhancing global commerce, particularly in its engagement with the United States business sector.
Experts predict that ASEAN will emerge as the fastest-growing area in the world over the next decade, driven by foreign investment, export competitiveness, infrastructure advancements and demographic trends that support domestic demand-led growth in consumer markets. Members of the US-ASEAN Business Council, an organization with a total of 180 leading companies in all major sectors, announced over US$15 billion in investment commitments within the ASEAN digital ecosystem during the first half of 2024. This strategic investment will focus on data centers, cloud hubs and undersea cables, cultivating the region’s projected digital economic growth, anticipated to reach $1 trillion by 2030.
Furthermore, negotiations to develop the ASEAN Digital Economic Framework Agreement (DEFA), commenced in 2023, have the potential to establish the first major region-wide digital economy agreement globally. This agreement will address nine core elements, including digital trade, cross-border e-commerce, cybersecurity, digital identification, digital payments, cross-border data flows and other emerging topics.
From the digital economy perspective, Indonesia has a real opportunity to leverage emerging technologies to support the Golden Indonesia Vision as part of the economic transformation set out in the 2024-2045 National Long-Term Development Plan (RPJPN). The three pillars of (i) digital government, (ii) digital economy and (iii) digital society outlined in Indonesia’s Digital Vision 2045 provide clear pathways for developing a digital ecosystem focused on data governance, research and innovation, digital human capital and digital infrastructure.
A robust digital backbone in Indonesia requires substantial investments in hardware and infrastructure, including data centers, high-speed internet and 5G networks. This infrastructure is critical for basic connectivity and serves as the foundation for advanced technologies such as artificial intelligence (AI) and the internet of things (IoT), both of which rely on high-speed data transmission and vast computational power. Connectivity initiatives like the Bakti Kominfo program and the Satellite Satria project are ongoing, aimed at bridging the digital divide and providing high-speed internet access to remote areas.
