Economist highlights three keys for Indonesia's digital economy to compete globally

Economist Rony P Sasmita from the Indonesia Strategic and Economic Action Institution has highlighted three key factors for creators in Indonesia’s digital economy to develop and compete in the global market. Rony emphasised that the quality and differentiation of products from Indonesian creators must be elevated from merely viral content to offerings with added value and a strong identity.

“The challenge ahead is no longer about ‘growing or not’, but ‘who will win in the global competition’, because Indonesian creators are now competing directly with creators from all over the world,” he said in Jakarta on Friday.

He noted that the growth prospects for creators in Indonesia’s digital economy are substantial and still in the early stages. He said that Indonesia’s demographic advantage, dominated by a young generation, along with high internet penetration and a large, dispersed pool of creative talent, provides a strong foundation.

“Dependence on advertising revenue alone is not enough. There must be diversification, such as brand partnerships, proprietary products, membership models, and others,” he explained.

Rony also stressed the importance of the state’s presence as a key to the development of the digital economy, not just as a regulator but as an enabler ensuring the ecosystem grows healthily, competitively, and is not left behind by other countries. He considers the government’s policy to include content creation as a business activity within the 2025 Indonesian Standard Industrial Classification (KBLI) and the requirement for a Business Registration Number (NIB) to be a step in the right direction.

“The digital economy, especially content creation, is no longer a side activity. It has become an economic sector with significant economic value. Therefore, the state needs to start ‘recognising’ and ‘administering’ this activity,” he said.