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ASEAN’s Digital Market Heads Toward USD 2 Trillion

Indonesia Accelerates Gig Economy and AI to Lead the Region

by Editor Asiatoday
December 19, 2025
in Business
Reading Time: 3 mins read
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ASEAN’s Digital Market Heads Toward USD 2 Trillion

FILE PHOTO: Digital transftomation in ASEAN

ASIATODAY.ID, JAKARTA — Southeast Asia is entering a decisive phase in its digital transformation.

The ASEAN digital market is projected to double to USD 2 trillion by 2030, and Indonesia is positioning itself at the forefront of this growth.

In a bold policy move, the Indonesian Government has launched a Gig Economy Training Program for Generation Z alongside an AI Open Innovation Challenge, aiming to fast-track national digital competitiveness.

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The initiative was officially unveiled on Thursday, December 18, 2025 by Coordinating Minister for Economic Affairs Airlangga Hartarto, signaling Indonesia’s ambition to anchor digital growth as a new pillar of the economy.

“The digital economy is Indonesia’s third engine of growth, complementing industry and social protection. This is the foundation of our technological sovereignty,” Airlangga said.

Digital Economy Emerges as Indonesia’s New Growth Engine

Airlangga noted that Indonesia’s digital economy is currently valued at over USD 90 billion and is projected to surge to USD 400 billion by 2030. At the regional level, under the Digital Economic Framework Agreement (DEFA), ASEAN’s digital market is expected to expand from USD 1 trillion to USD 2 trillion within the same period.

“To secure a leading role in ASEAN, Indonesia must dominate the digital talent landscape, especially among Generation Z,” he emphasized.

The gig economy is forecast to grow at double-digit rates, becoming a critical driver of job creation through flexible, skills-based, and technology-enabled work.

Strengthening the Gig Economy from Talent to Technology

The Gig Economy Training Program is designed as an end-to-end ecosystem, covering: Digital talent development, Intellectual property rights (IPR) protection, and Strategic industries such as semiconductors and artificial intelligence.

The program will be rolled out in 15 cities nationwide, with Jakarta designated as the national pilot project.

To ensure robust financial backing, the government has allocated IDR 10 trillion (approximately USD 640 million) in special People’s Business Credit (KUR) for gig economy players and creative industry entrepreneurs.

The scheme offers: a low interest rate of 6 percent, loan ceilings of up to IDR 500 million, and flexible scaling based on the needs of digital projects.

Top-performing innovators will also be rewarded with electric vehicles, reinforcing Indonesia’s push toward green and sustainable technology adoption.

Flexible Work and Private Sector Collaboration as Key Enablers

Airlangga underscored the importance of Work from Anywhere (WFA) models to maintain productivity without placing additional pressure on urban infrastructure. Strategic collaboration with state-owned enterprises and private firms—such as Telkom, Jababeka, and Emtek—will play a pivotal role in mentoring young talents and establishing AI innovation hubs across Indonesia.

Jakarta as the National Testbed for Digital Talent and Innovation

Jakarta Governor Pramono Anung reaffirmed the capital’s readiness to serve as Indonesia’s urban laboratory for gig economy and AI development.

He described the initiative as a strategic step toward Jakarta’s ambition to rank among the Top 50 Global Cities by 2030 and Top 20 by 2045.

“The gig economy is no longer just an alternative form of employment. For Generation Z, it is a platform to nurture creativity, independence, and global competitiveness,” Pramono said.

Jakarta’s economy grew 5.04 percent in the third quarter of 2025, contributing 16.39 percent to the national economy—a strong foundation for accelerating innovation-led digital transformation.

The Jakarta provincial government has pledged to strengthen cross-sector collaboration involving central government institutions, state-owned enterprises, private companies, and development partners to ensure the gig economy and AI ecosystem delivers tangible, inclusive, and sustainable impacts.

Closing the event, Pramono announced plans to launch a Generation Z-focused innovation competition as part of the city’s 500th anniversary celebrations, challenging young innovators to develop solutions for traffic congestion and urban waste management, with opportunities to learn directly from leading global cities. (AT Network)

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