Jakarta. Asia and the Pacific can become a major player in the digital economy, but the region still struggles with a severe digital divide, Indonesia told the region’s annual economic forum in Peru.

Ministers and leaders of countries belonging to the Asia-Pacific Economic Cooperation (APEC) grouping gathered in Lima for their annual summit this week. 

President Prabowo Subianto already touched down in Peru, and kicked off his Lima trip with some bilateral talks. He sent Foreign Minister Sugiono to attend the APEC ministerial meeting on Thursday local time. The session mainly focused on how the region could use digitalization as a tool to shift to the formal economy. Sugiono began his speech by pointing out the unequal access to technology.

“Today, we are facing a paradox. Asia-Pacific is home to some of the world's most advanced digital economies and innovation hubs. Yet, it is also where the digital divide looms large, threatening to leave millions behind,” Sugiono said at the APEC ministerial meeting.

The statistics from the International Telecommunication Union (ITU) painted a grim picture of the region’s digital economy. Over 1.7 billion people in Asia-Pacific lack internet access, and nearly 70 percent of the workers in the low and middle-income economies do not possess basic digital skills. Women in the region are also 20 percent less likely to have access to the internet, according to Sugiono.

“In Indonesia, we recognize that building robust digital infrastructure is a critical first step in this journey. Without equitable access to digital technologies, economic opportunities remain concentrated among the privileged, which will deepen inequalities,” Sugiono said.

He then called for the need to upskill and reskill human capital, including those in rural communities and women.

“Bridging the digital divide in our region demands a regional focus on women’s empowerment, including [by] providing affordable access to devices, skills training, and inclusive strategies to integrate women into the digital workforce,” Sugiono said. 

The APEC is a 21-strong intergovernmental organization that encompasses some of the world’s strongest digital economies, including the US and China. The digital economy in APEC’s founding member Indonesia is also on track to reach $90 billion in gross merchandise value (GMV) in 2024, according to a recent Google report. 

Prabowo came to Lima after visiting China and Washington. The Beijing trip saw Indonesian tech conglomerate GoTo partnering with the cloud service units of two Chinese giants: Tencent Cloud and Alibaba Cloud. All three agreed to help Indonesia equip its workforce with skills related to the digital economy.