Jakarta, August 12, 2025 – The Prasasti Center for Policy Studies (Prasasti) today released a research report titled Unlocking Value of Indonesia’s Digital Economy to Foster 8% Sustainable Growth. The study’s key findings underscore the critical role of the digital economy in helping Indonesia reach its 8% economic growth target. Prasasti’s research also notes that the digital economy contributes approximately IDR 1,860 trillion (8.4%) to the national Gross Domestic Product (GDP). Additionally, the study reveals that every 1-unit increase in value-added from the digital economy drives a 1.89-unit rise in total output across all other sectors. This figure reflects the dependence of other sectors on the digital economy.
Burhanuddin Abdullah, Prasasti’s Board of Advisors, stated, “The digital economy plays a strategic role in achieving the government’s 8% economic growth target. By encouraging and facilitating the growth of the digital economy, its impact can be felt directly across all levels of society. It can expand access to markets, finance, and technology—benefiting consumers, merchants, MSMEs, and informal workers.” He added, “The national digital industry also offers greater opportunities for Indonesian tech talent to secure jobs and learning opportunities in their fields.”
Piter Abdullah, Prasasti’s Policy and Program Director, emphasized the importance of leveraging the digital momentum for inclusive economic growth. “Amid global economic slowdown pressures, energy transitions, and supply chain shifts, Indonesia needs a more efficient growth engine. The digital economy provides a concrete solution,” said Piter. With projected contributions reaching USD 220–360 billion by 2030 and accounting for 40% of ASEAN’s digital economy value, the digital sector holds immense potential to boost national productivity. “The digital economy not only creates jobs and fosters innovation but also serves as an enabler to achieve the 8% growth target,” he added.
Prasasti’s Research Director, Gundy Cahyadi, highlighted that the study found the digital economy’s Incremental Capital Output Ratio (ICOR) to be 4.3. “Meanwhile, the average investment efficiency across 17 national economic sectors stands at an ICOR of 10.6. This means every rupiah invested in the digital economy generates twice the output compared to conventional sectors. A lower ICOR indicates greater efficiency in converting investment into real economic output. Investments in digital infrastructure, data talent development, and cloud services are not just sectoral transformations—they are a national industrialization strategy that will shape Indonesia’s competitiveness and economic future for the next two decades,” Gundy explained.
The Prasasti report maps 17 digitalized sectors using the OECD-ADB methodology and highlights Indonesia’s largest digital ecosystem, GoTo, as a case study to measure the tangible impact of digitalization on the economy. “Our research shows that the GoTo ecosystem generated an economic value of IDR 480.7 trillion in 2024, employed over 2.03 million workers, and helped reduce the national poverty rate by 0.45 percentage points. GoTo’s digital ecosystem recorded an ICOR of 2.3—approximately 87% more efficient than the digital economy’s average ICOR of 4.3,” Gundy elaborated.
He further noted that local tech companies like GoTo deliver real social impact by creating jobs, increasing incomes, and expanding financial inclusion for MSMEs and informal workers. “The research demonstrates a shift in the national economic structure toward digitalization. This is why government support through policies and incentives that strengthen local digital industries and ecosystems is essential as a strategy for equitable and sustainable growth,” Gundy stressed.
“The government can advance policies for digital infrastructure development, including fiberization and 5G deployment beyond Java, as well as provide R&D incentives for cloud and AI technologies,” said Gundy. Additionally, expanding annual training programs for one million data and AI talents and creating inclusive financing schemes to help MSMEs and communities adopt digital technology more easily are crucial. This comprehensive support is expected to accelerate national economic growth while ensuring an inclusive and sustainable digital transformation. (*)
Learn more about Prasasti Research on Digital Economy, click here