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🇮🇩 Indonesia /Economy & Trade

Airlangga Pushes ASEAN to Finalize Digital Economy Agreement

From Tempo · (7m ago) Indonesian Positive tone

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • Coordinating Minister for Economic Affairs Airlangga Hartarto urged ASEAN to finalize the ASEAN Digital Economy Framework Agreement (DEFA) by November 2026.
  • The DEFA aims to create a comprehensive regional digital economy framework, potentially doubling ASEAN's digital economy value to US$2 trillion by 2030.
  • Indonesia views DEFA as crucial for its digital transformation, aligning with its National Digital Economy Strategy and enhancing competitiveness.

Indonesia, under the coordination of Minister Airlangga Hartarto, is championing the finalization of the ASEAN Digital Economy Framework Agreement (DEFA), a move that underscores the nation's commitment to regional economic integration and digital advancement.

Our clear target is that the DEFA agreement must be signed in November of this year (ASEAN Summit), after undergoing the legal scrubbing process and domestic consultations in each country.

— Airlangga HartartoCoordinating Minister for Economic Affairs, setting a deadline for the DEFA agreement.

Minister Hartarto's push for a November 2026 deadline for DEFA's signing, following legal scrubbing and domestic consultations, reflects a sense of urgency. The digital economy's rapid evolution demands a swift and coordinated response from ASEAN, and DEFA is seen as the cornerstone for this collective effort. The agreement, initiated during Indonesia's ASEAN chairmanship in 2023, is poised to be the world's first comprehensive regional digital economy framework.

From an Indonesian perspective, DEFA is more than just a trade agreement; it's a strategic imperative. It aligns perfectly with Indonesia's own '2030 National Digital Economy Strategy' and its aspirations to join the Organisation for Economic Co-operation and Development (OECD). The potential doubling of ASEAN's digital economy value, from US$1 trillion to US$2 trillion by 2030 according to Boston Consulting Group, highlights the immense economic opportunities that DEFA could unlock for the region, and particularly for Indonesia.

The development of the digital economy is very dynamic, so ASEAN needs to respond wisely.

— Airlangga HartartoHighlighting the need for ASEAN to adapt to the evolving digital landscape.

The agreement is expected to bolster digital infrastructure, enhance digital human resources, support the transformation of Micro, Small, and Medium Enterprises (MSMEs), and strengthen cybersecurity. For Indonesia, this translates into attracting high-tech investment, reinforcing national data sovereignty, and building an inclusive, competitive digital ecosystem. The participation of other key ASEAN economic ministers in the meeting signifies a shared commitment to this digital future.

DEFA itself was initiated during Indonesia's leadership in ASEAN in 2023. The agreement is touted to be the world's first comprehensive regional digital economy framework and a driver of ASEAN's digital economy integration.

— SourceProviding background on the initiation and significance of the DEFA agreement.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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