East Ventures, a leading venture capital firm in Indonesia and Southeast Asia, has released its latest Digital Competitiveness Index (EV-DCI) 2025 report. This report maps Indonesia’s digital landscape and ranks the digital competitiveness of 38 provinces and 157 cities or regencies nationwide. Once again, DKI Jakarta tops the list, maintaining its position as the most digitally competitive province in Indonesia. This report highlights the steady progress and growing inclusiveness of Indonesia’s digital economy.
Understanding the Digital Competitiveness Index
The digital competitiveness index measures multiple critical factors to assess the strength and potential of each region’s digital economy. These factors include:
- Digital infrastructure readiness, such as internet access and mobile network coverage
- Availability and quality of human resources skilled in digital technologies
- Digital economic activities, including startup growth and digital transactions
- Provincial government policies supporting the digital ecosystem
Since its debut in 2020, the EV-DCI consistently evaluates these areas to track how well regions develop their digital economies. The 2025 report shows an overall score increase to 38.8, up from 38.1 in 2024, reflecting positive trends nationwide.
Jakarta’s Leading Position in Indonesia’s Digital Landscape
Jakarta has held the top spot for five consecutive years, scoring an impressive 78.4 in 2025. Its leadership stems from several key advantages:
- Advanced digital infrastructure throughout the city
- A strong investment climate attracting tech startups and innovation
- Robust human capital skilled in AI, blockchain, and other emerging technologies
Willson Cuaca, Co-Founder and Managing Partner of East Ventures, remarked, as cited by Pasardana.id “The goal of East Ventures has remained consistent since the report’s inception five years ago: to present deep insights and analysis on the impact of digital economy developments across the archipelago, while promoting inclusive digital economic opportunities for all Indonesians.” Jakarta’s sustained top ranking exemplifies this progress.
Regional Progress and Narrowing the Digital Divide
The 2025 index reveals promising developments outside Java’s main hubs. Provinces in Indonesia’s Frontier, Outermost, and Underdeveloped regions (3T) show signs of catching up. For example, Papua improved its rank from 34th to 20th, driven by strong economic growth reaching 7.8% in 2024, outpacing the national average of 5.0%.
Efforts to expand internet access in villages, especially with 3G and 4G coverage, play a vital role. The digital divide between provinces is narrowing, signaling more equitable regional digital opportunities. This trend aligns with East Ventures’ mission to foster inclusive growth across all parts of Indonesia.
The Role of AI and Startup Investment in Digital Growth
Investment in AI startups has surged, reflecting the country’s embrace of advanced technology. Between 2020 and 2024, total investment in Indonesia’s AI startups jumped 141.5%, reaching US$542.9 million in 2024 alone. Technologies like artificial intelligence, blockchain, IoT, and 5G networks accelerate digital transformation and increase productivity.
East Ventures actively supports this ecosystem, partnering with SEEDS Capital to commit S$300 million toward deep tech companies in Singapore, anticipating positive spillover effects across Southeast Asia, including Indonesia.
Several East Ventures portfolio companies demonstrate AI’s impact:
- Xendit has processed over 350 million transactions, using AI for fraud detection and automation
- Komunal facilitated Rp10.6 trillion in MSME loans, speeding credit assessment with AI
- Stockbit applies AI as a co-pilot for product and service innovation
- Mekari supports 30,000+ MSMEs with AI-based accounting, tax, HR, and CRM solutions
- Meeting.ai automates administrative tasks for over 300,000 users
These examples underscore how AI adoption boosts Indonesia’s digital economy competitiveness.
The Future of Indonesia’s Digital Competitiveness
The EV-DCI 2025 report shows Indonesia on a steady path toward a more inclusive and sustainable digital economy. Willson Cuaca emphasized, “We believe this report serves as a compass providing strategic direction for Indonesia’s sustainable digital evolution. We are confident that collective capability can build a bright future for Indonesia’s digital economy, where inclusive development creates lasting value for all Indonesians.”
Achieving this vision requires strong collaboration between government bodies, the private sector, and communities to expand digital access and innovation nationwide. By accelerating digital infrastructure, investing in human capital, and encouraging AI adoption, Indonesia can maintain momentum and reduce regional disparities.
Source: pasardana.id, swa.co.id
Image: Getty Images
