JAKARTA, November 7, 2025 – The role of the digital economy extends beyond being merely an engine of national economic growth; it is also one of the answers for achieving an advanced Indonesia. All stakeholders within the digital economy ecosystem need to shift their paradigm, recognizing that the digital economy is no longer just an economic sector but a national strategy for economic independence and global competitiveness.
This assertion was made by Abraham Hidayat, Managing Partner at Skystar Capital, during his participation as a speaker in a seminar titled “CEO Insight: Indonesia Changemakers: One Step Towards an Advanced Indonesia,” held on Tuesday (November 4, 2025) in Jakarta. The event was part of the Kompas100 CEO Forum organized by Kompas daily newspaper in collaboration with PT PLN (Persero).
Abraham explained that over the past few years, the digital economy has proven its role as a key driver of economic growth. Approximately 15 years ago, the technology ecosystem in Indonesia was still nascent. Consequently, about 10 years later, Indonesia began to see extraordinary traction from the digital economy. “This included the emergence of various startups, digital platforms, and technology-based business models that have fundamentally changed the economic behavior of the public,” Abraham stated.
Today, Abraham continued, the digital sector has become one of the backbones of the national economy. The value of Indonesia’s digital economy is estimated to reach USD $90 billion, representing about 6%–7% of the national Gross Domestic Product (GDP). He highlighted that in 2021, foreign investment in the technology sector reached its peak. This was marked by total Foreign Direct Investment (FDI) specifically directed at technology amounting to approximately USD $9 billion out of a total FDI of USD $21.2 billion. This means nearly 40% of all FDI into Indonesia went into the technology and digital sectors.
Moreover, tens of millions of drivers, MSME actors, and online sellers depend on digital platforms, spanning from transportation services and e-commerce to payments. The total number of users of these platform services exceeds 100 million people. “This makes Indonesia the largest digital market in Southeast Asia,” Abraham noted. He explained that this growth was partly facilitated by the government’s role in creating regulations, infrastructure, and a conducive investment climate, allowing the industry to grow rapidly. However, Abraham suggested that during this initial phase, the government primarily adopted the position of a behind-the-scene facilitator.
Now, Abraham urged, the government should be encouraged to elevate its role beyond being just a behind-the-scene facilitator to actively leading as the locomotive and catalyst for national technological growth. Furthermore, all stakeholders—including investors, academics, and business players—must be involved in pushing technological development and the digital economy ecosystem. One crucial way to do this is by increasing research and development (R&D) initiatives to foster technological innovation.
Indonesia can learn from countries like China and Singapore, which have made the technology sector a national strategic program. A core focus of their strategy is stimulating investment in technological R&D and human capital. Abraham explained that advancing technology is paramount because it is one of the main factors a country needs to escape the middle-income trap. This aligns with the recommendations in the World Bank’s report, World Development Report 2024.
“Countries that succeed not only adopt technology but also transform into technology creators, building innovation from within,” Abraham stated.
He concluded, “This is the momentum for us to change, making technology not just another economic sector, but a national strategy toward economic independence and global competitiveness.”
