Indonesia Advances Digital Transformation with UNDP Partnership

Digital Nusantara Initiative aims for unified, secure digital system.

Indonesia is taking significant steps to modernize its digital infrastructure. A new partnership between the National Economic Council (DEN) and the United Nations Development Programme (UNDP) Indonesia aims to accelerate the nation’s digital transformation through the Digital Nusantara initiative.

Key Objectives of Digital Nusantara

The initiative seeks to consolidate Indonesia’s fragmented digital landscape into a single, interoperable, secure, and scalable system for over 200 million mobile internet users. This transition is based on a digital public infrastructure (DPI) approach, integrating digital ID, authentication protocols, and data exchange.

Government Priorities

Initial efforts will focus on streamlining the unified social protection system. The government intends to expand this approach to other essential services, including civil registration, health services, and a national payment platform. According to the World Bank, Indonesia has the largest digital economy in Southeast Asia, highlighting the importance of this transformation.

Statements from Leaders

Norimasa Shimomura, UNDP Indonesia Resident Representative, stated that “digital transformation is not just about technology. It is about improving how public services reach people.” He added that the program will “unlock the full potential of digital public infrastructure for inclusive and accountable governance,” supporting Indonesian President Prabowo Subianto’s mandate. This mandate aims to modernize public services and accelerate digital transformation.

Septian Hario Seto, DEN Executive Secretary, said “this integration allows services to be delivered faster, more accurately, and with greater accountability, supporting the president’s vision for a modern, inclusive and resilient economy.”

Economic Impact

Indonesia’s digital economy is projected to reach US$194.5 billion in e-commerce alone by 2030. However, this transition requires overcoming technical, institutional, and cultural challenges.

UNDP and DEN Collaboration

The UNDP and DEN partnership aims to facilitate this transition by promoting awareness of the unified system, coordinating efforts across various ministries, and guiding the project towards new DPI use cases.