ASIATODAY.ID, JAKARTA — The ASEAN region is accelerating its efforts to build an inclusive, resilient, and high-performing digital economy. With a population of over 680 million, Southeast Asia has emerged as one of the world’s most dynamic and fast-growing digital markets.
According to the e-Conomy SEA 2024 report by Temasek, Bain & Company, and Google, the region’s digital economy reached a gross merchandise value (GMV) of USD 263 billion in 2024, generating around USD 89 billion in revenue.
Indonesia, as one of ASEAN’s key economic drivers, recorded a digital economy value of USD 90 billion in 2024 and is projected to surpass USD 110 billion by 2025. The government anticipates the figure will soar to USD 360 billion by 2030, with e-commerce contributing approximately USD 150 billion.
“These numbers highlight the opportunities and diversity of growth across Southeast Asia. This is where the ASEAN Digital Economy Framework Agreement (DEFA) becomes crucial. DEFA represents our shared commitment to realize a USD 2 trillion digital economy by 2030 — one that fosters innovation, inclusivity, and resilience,” stated Coordinating Minister for Economic Affairs Airlangga Hartarto during The 14th ASEAN Digital Economy Framework Negotiating Committee Meeting held in Jakarta on Tuesday, October 7, 2025.
DEFA: A Milestone Initiative from Indonesia for ASEAN’s Digital Transformation
Originally initiated by Indonesia during its ASEAN Chairmanship in 2023, DEFA aims to accelerate ASEAN’s digital transformation through deeper cooperation, harmonized cross-border regulations, improved digital system interoperability, and greater empowerment of MSMEs and digital talent. It is expected to serve as the cornerstone for ASEAN’s digital economy, unlocking its potential value of up to USD 2 trillion by 2030.
While growth has been remarkable, Minister Airlangga emphasized that ASEAN’s digital economy still faces significant challenges, including fragmented digital markets, inconsistent data regulations, and limited cross-border expansion opportunities for small and medium enterprises. DEFA, therefore, serves as a vital framework to maintain momentum and define the region’s digital future.
As of the 13th round of negotiations in Hanoi, Vietnam, 19 out of 36 articles (52.78%) have been agreed upon, covering a range of technical issues. The ongoing 14th round in Jakarta aims to push progress to 70% completion on core and value-added paragraphs, paving the way for adoption at the 57th ASEAN Economic Ministers (AEM) Meeting and the 26th AEC Council scheduled for October 2025.
Key issues under discussion include Non-Discriminatory Treatment of Digital Products (NDTDP), Cross-Border Transfer of Information (CBTI), Source Code, Location of Computing Facilities (LOCF), and collaboration on submarine telecommunication cable systems.
Toward the World’s First Regional Digital Framework
Negotiations will continue with mechanisms for joint monitoring, greater private sector involvement, technical assistance, and the establishment of a dispute resolution mechanism to ensure effective implementation. The final draft of DEFA is targeted for completion in early 2026, with the official signing expected in the third quarter of 2026.
“We must double our efforts to make ASEAN DEFA the world’s first regional, modern, comprehensive, and visionary digital framework — a powerful engine for economic growth and social progress across ASEAN,” Minister Airlangga concluded.
The meeting was attended by Deputy for Trade and Digital Economy Coordination Ali Murtopo, Expert Staff for Regional Development Haryo Limanseto, DEFA NC Chair Prewprae Chumrum, and Director of Market Integration at the ASEAN Secretariat Dr. Le Quang Lan. (AT Network)
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