JAKARTA —  Burhanuddin Abdullah, Board of Advisors Prasasti emphasized that the digital economy not only boosts productivity but also reduces capital needs. “The digital economy can make the national economy more efficient by lowering ICOR. Therefore, digitalization must be continued across sectors to expand access to markets, finance, and technology,” he said.

He added that to achieve 8% growth, investment equivalent to 52% of GDP is required. With the largest digital economy potential in Southeast Asia supported by a large population and high mobile penetration, Indonesia has the opportunity to make the sector a growth catalyst.

However, Piter Abdullah, Policy and Program Director Prasasti warned that the biggest challenge remains the disparity in digital infrastructure. Many areas outside major cities still face limited internet access. 

“If this issue is not addressed, digital economy growth will be concentrated in certain regions, widening interregional inequality,” he said.

Equal distribution of digital infrastructure is therefore a decisive factor for Indonesia to unlock its digital economy potential and reach the 8% growth target by 2045. Without equitable internet access, much of this vast potential risks remaining untapped, particularly in regions outside major growth centers.

Piter explained that cross-sector digitalization could help drive economic transformation toward greater efficiency. Currently, Indonesia’s economic efficiency remains low, with the Incremental Capital Output Ratio (ICOR) at around 6–7, compared with peer countries at 3–4.

 “If we can expand digitalization to the 17 sectors we examined, we can pursue 8% growth with lower capital investment,” he said during the launch of the Indonesia Digital Economy Research Report on Tuesday (12/8/2025).

Gundy Cahyadi, Research Director Prasasti added that the study shows the digital economy’s ICOR stands at just 4.3, far more efficient than the national average of 6.6 and the core ICT sector’s 5.1.

 “This efficiency means that every additional Rp4.3 invested in the digital economy can generate Rp1 in GDP growth, whereas other sectors require Rp6.6,” he said.

With this level of efficiency, Prasasti projects that digitalization could help Indonesia escape the middle-income trap earlier than previously expected by 2038 if growth reaches 7%, or by 2041 if it is 6%.

Learn more about Prasasti Research on Digital Economy, click here