Technology

Digital Inclusion Drives Wider Economic Reach from Sumatra to Papua

Digital Inclusion Drives Wider Economic Reach from Sumatra to Papua

Prasasti Pulse
August 2025
Digital Inclusion Drives Wider Economic Reach from Sumatra to Papua

Jakarta – The expansion of Indonesia’s digital economy is translating into tangible benefits for households and regional markets. A recent study by the Prasasti Center for Policy Studies found that greater participation in digital platforms has increased household spending capacity by 1.05 percent, signaling improvements in everyday living standards.

One of the largest platforms in the country now connects over 1.7 million active workers, from small-scale entrepreneurs to transport providers. Many rely on this income as their main source of financial support. “The digital sector is proving to be an essential part of household survival strategies. It generates income streams that are both flexible and reliable for diverse groups of workers,” said Piter Abdullah, Director of Policy and Program at Prasasti.

The economic footprint is extending well beyond major cities. Provinces across Sumatra, Kalimantan, and eastern regions are seeing stronger local commerce as digital channels link rural producers and service providers to national demand. This diffusion of growth is helping to balance Indonesia’s economic geography.

Financial access is expanding alongside job creation. Many platform-linked workers are opening bank accounts, gaining access to e-money services, and registering for social protection schemes for the first time. “When people are connected to digital platforms, they also become connected to the formal financial system. This creates opportunities for investment in small businesses, home improvements, and education,” said Gundy Cahyadi, Research Director at Prasasti.

Women play a key role in this trend, with more contributing directly to household income. Workers with limited education are also finding opportunities to earn above-average wages, expanding the number of beneficiaries.

The findings suggest that digital inclusion is accelerating social and economic mobility while distributing growth more evenly across regions. Policymakers are being urged to maintain the momentum by strengthening digital infrastructure, improving workforce skills, and ensuring that the benefits of this transformation are accessible to all segments of society.


Learn more about Prasasti Research on Digital Economy, click here