Jakarta, August 13, 2025 – Indonesia’s digital economy is generating broad ripple effects across the national economy. A study by the Prasasti Center for Policy Studies shows that every one rupiah of value added in the digitalized sector triggers an additional 1.66 rupiah in upstream suppliers and 1.89 rupiah in downstream sectors. These multipliers demonstrate how digital activities create a stronger economic spin-off than many other industries.
Upstream benefits come from rising demand for technology, logistics, and payment services. Downstream gains are seen in the growth of small and medium enterprises, expanded consumer access, and greater efficiency in goods and service distribution.
“The digital economy plays a dual role by reinforcing supply chains while expanding markets. This amplifies the overall economic drive and strengthens the foundation for long-term targets,” said Piter Abdullah, Director of Policy and Program at Prasasti.
The research also finds that digitization in retail, financial services, and logistics improves efficiency in manufacturing, agriculture, and other services. Faster goods flow, lower transaction costs, and wider access to financing act as catalysts for cross-sector productivity.
Investment efficiency is another advantage. The digital sector’s Incremental Capital Output Ratio (ICOR) stands at 4.3, compared to the national average of 6.6. “This difference shows that digital investments deliver higher economic output with relatively smaller capital. It reinforces why digital should remain a development priority,” said Gundy Cahyadi, Research Director at Prasasti.
In recent years, Indonesia’s digital ecosystem has extended benefits to multiple regions, working with local suppliers, expanding distribution networks, and boosting the competitiveness of regional businesses.
With strong multipliers in both upstream and downstream linkages, the digital sector is emerging as one of the most effective instruments to accelerate inclusive growth. The data underscores that digital transformation is not only a technological shift but a new foundation for Indonesia’s economy.
Learn more about Prasasti Research on Digital Economy, click here