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Indonesia digital economy and infrastructure development

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2026-08-18 04:46 UTC → 2026-08-21 18:23 UTC · added ~~removed~~

Indonesia is pursuing a multi-faceted digital transformation strategy involving policy, infrastructure, and financial technology. The initiative was highlighted by the fifth Digital Transformation Indonesia (DTI) Series 2026 conference, where officials from the Ministry of Communication and Digital emphasized the need for physical and virtual infrastructure, talent development, and a secure digital ecosystem to reach long-term economic goals. In the financial sector, cryptocurrency platforms are introducing gamification to increase user engagement. Specifically, Indodax has launched ‘DAX Rewards’, a feature using daily missions and points to offer rewards such as electronics and travel vouchers, though the company notes these are intended to “complement, not replace, responsible investment decisions”. Furthermore, the National Sharia Board of the Indonesian Ulema Council (DSN MUI) is encouraging Sharia-compliant crypto assets based on tokenized Real World Assets (RWA), such as gold or sukuk, to ensure clear underlying value. Digital infrastructure is expanding through partnerships to support artificial intelligence and cloud computing. NeutraDC, a subsidiary of PT Telkom Indonesia, is partnering with PT PLN (Persero) to develop hyperscale data centers in Cikarang, West Java, aiming for a 200 MW capacity. To strengthen digital sovereignty, the Ministry of Communication and Digital Affairs is prioritizing the development of the National Data Center (PDN) and enhancing cyber safety. This includes a crackdown on illegal activities, with the ministry reporting the removal of approximately 3.7 million online gambling websites and the closure of roughly 32,500 linked bank accounts between October 2024 and July 2026. The ministry is also enforcing regulations to prioritize child protection within the digital ecosystem. Recent efforts have expanded to include regional governance and poverty alleviation. The Ministry of Home Affairs is urging local governments to evolve digital transactions into integrated ecosystems to boost Local Original Revenue (PAD) through automated collection, billing, and reporting.

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