Despite a 75 percent plunge in startup funding to US$323 million (Rp5.2 billion) in 2024, Indonesia’s digital ecosystem continues to grow, driven by increased online transactions and rapid adoption of technologies like artificial intelligence (AI), according to East Ventures – Digital Competitiveness Index (EV-DCI) 2025, published in May 2025 in collaboration with Katadata Insight Center.

The nation’s Gross Merchandise Value (GMV) is projected to reach US$90 billion in 2024, a 13 percent increase from 2023, with e-commerce accounting for US$65 billion. This marks a continued reliance on the digital sector to fuel economic expansion, now contributing 4–5 percent to Indonesia’s GDP − with a government target of 20 percent by 2045.

The report highlights four structural challenges hindering inclusive digital transformation:

● Regulatory lag − especially in cybersecurity and AI governance, with key frameworks like the Data Protection Law (No. 27/2022) yet to be fully implemented;

● Infrastructure inequality, particularly in internet access and digital readiness across regions;

● Digital talent shortage, with a projected gap of 2 million workers by 2030;

● Limited access to financing for digital MSMEs.

EV-DCI recommends three core strategies:

● Accelerate national priority programs using emerging technologies;

● Strengthen digital ecosystems through legal certainty, infrastructure, and skilled talent;

● Promote digital economy equity across all regions.

Portfolio companies under East Ventures − such as Mekari, Xendit, Komunal, and McEasy − are actively contributing through AI solutions in fintech, logistics, and regional digitalization. The AI-driven platforms are also enhancing efficiency and accessibility in underserved markets.

East Ventures has launched IndoBuild AI, a collaborative platform supporting AI innovators in healthcare, education, and government. Winners like Lentera.ai and LeaseSync received backing from AWS, Google, and Alibaba Cloud. By 2030, AI is forecast to contribute US$366 billion or 12 percent of GDP, underscoring its critical role in shaping Indonesia’s digital future.