Jakarta. Indonesia is stepping up efforts to expand international market access, attract investment and accelerate digital transformation as President Prabowo Subianto enters his second year in office amid global economic uncertainty.

The government is pursuing a dual strategy of strengthening Indonesia’s position in global markets while building a more resilient, inclusive and competitive domestic economy. The Coordinating Ministry for Economic Affairs is overseeing priority programs aimed at translating international agreements and digital initiatives into job creation and improved public welfare.

Expanding Global Market Access and Investment
Indonesia has completed substantive negotiations for the ASEAN Digital Economy Framework Agreement (DEFA), a milestone initiative launched during Indonesia’s ASEAN chairmanship. The agreement is ready for signing at the ASEAN Summit and is projected to help expand the region’s digital economy to $2 trillion by 2030, with Indonesia accounting for the largest share.

The government is also overseeing three strategic trade agreements expected to be implemented in the near future: the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), the Indonesia-Canada Comprehensive Economic Partnership Agreement (I-CA CEPA), and the Indonesia-Eurasian Economic Union Free Trade Agreement (I-EAEU FTA).

Impact assessments project that the agreements could increase Indonesian exports by $10.9 billion under the IEU-CEPA, $1.6 billion under the I-CA CEPA, and between $2.2 billion and $2.89 billion under the I-EAEU FTA.

After intensive negotiations, the IEU-CEPA has entered the technical finalization stage at the European Union Council ahead of signing and full implementation. The agreement is expected to broaden market access for Indonesian manufactured goods, remove tariff barriers and strengthen the country’s integration into global supply chains.

“Chief of Economic Affairs Minister Airlangga targets completing the IEU-CEPA ratification process in the second half of 2026, allowing implementation to begin in early 2027,” said Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs.

Indonesia is also advancing its accession to the Organisation for Economic Co-operation and Development (OECD). As the only Southeast Asian country with official candidate status, Indonesia continues to receive support from OECD member countries as it works to complete its accession roadmap, with full membership targeted for 2028.

Developing AI, Data Center Investment and Digital Talent
Alongside its global economic diplomacy, the government is promoting advanced technology as a new engine of economic growth.

Indonesia has strengthened its position in the global digital landscape by becoming a founding member of the World Artificial Intelligence Cooperation Organization (WAICO) during the World Artificial Intelligence Conference summit in Shanghai, alongside representatives from 30 countries. The initiative underscores Indonesia’s role in shaping global AI governance that is safe, ethical and centered on human sovereignty.

“AI outcomes, in my view, span many fields because the technology has such a broad scope. For countries like Indonesia, AI can be applied in agriculture, including modern farming, the energy transition and renewable energy, as well as across various digital sectors, including healthcare,” Haryo said, conveying Airlangga’s views.

“Chief of Economic Affairs Minister Airlangga believes Indonesia’s digital economy is currently worth $130 billion and is heading toward $300 billion, a figure that will multiply with the adoption of AI,” he added.

The government is pairing technology development with efforts to prepare a skilled workforce. It is overseeing initiatives to meet the national target of developing 9 million digital talents by 2030, equivalent to 600,000 people annually, through upskilling programs in artificial intelligence, data science and cybersecurity.

The government remains optimistic that stronger international economic diplomacy and inclusive digital transformation will bolster economic resilience, create quality jobs and help Indonesia move toward high-income country status.

Economic Affairs Ministry has pledged to continue overseeing the implementation of the government’s priority agenda with a focus on transparency, accountability and public welfare.

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