World Bank: Digital Transformation Key to Indonesia Economic Growth

Indonesia's economy grew 5.0% in the first nine months of 2025, and growth is projected to remain around this level through 2026 and 2027, supported by strong investment and net exports.

Labor Market Challenges

Despite macroeconomic stability, labor market challenges persist. The economy is creating jobs for most labor entrants, but mostly in low-value added sectors. Between 2018 and 2024, real wages declined by 1.1 percent annually.

Digital Infrastructure Recommendations

• Network Access: Accelerate spectrum allocation for mobile broadband and 5G
• Inclusive Connectivity: Mobilize private investment to expand fixed broadband in rural areas
• Data Infrastructure: Create a more conducive investment environment for data centers

Largest Digital Economy in ASEAN

Indonesia's digital economy remains the largest in ASEAN in 2025, but challenges remain: average internet speeds are falling behind regional peers, and many users in rural areas lack high-speed connections.