Heaptalk, Jakarta — Indonesia’s digitalization progress has shown positive results, with the country’s digital competitiveness ranking rising to 43rd globally out of 67 countries. Over the past five years, Indonesia has consistently moved up from 56th place (2020), 53rd (2021), 51st (2022), and 45th (2023) to 43rd in 2024.
Compared to several Southeast Asian countries, Indonesia’s ranking remains behind, only surpassing the Philippines. Singapore leads in the top position, followed by Malaysia (36th), Thailand (37th), Indonesia (43rd), and the Philippines (61st). Among other Asian countries, Indonesia’s digital competitiveness ranks higher than India (51st) and Turkey (55th), which have declined over the past five years.
The ranking is based on research by the International Institute for Management Development World Digital Competitiveness Ranking (IMD WDCR) 2024. This study uses complex data and surveys with 52 criteria to assess the strengths and weaknesses of a country’s digital competitiveness.
Low broadband internet speed
These criteria are then grouped into knowledge, technology, and future readiness. These pillars are crucial for determining a country’s innovation, inclusivity, and digital transformation. “To improve digital competitiveness, a country must balance these three factors,” explained Christos Cabolis, Chief Economist of the IMD World Competitiveness Center (WCC).
Of the 52 assessment criteria, Indonesia’s broadband internet speed is ranked very low at 66th out of 67 countries. The country still needs improvements in areas such as increasing internet users (ranked 64th), reducing software piracy (ranked 63rd), technology education and training (ranked 63rd), and publishing AI research articles in Scopus journals (ranked 63rd).
WCC Senior Economist Jose Caballero further addressed the issue of the digital divide, which remains a critical issue in many developing countries. “Indonesia is among them, as evidenced by the low number of broadband internet users, likely due to unequal internet service distribution in some areas,” he stated.
Increased technology investment
In addition to uneven access to high-speed internet, the digital divide—projected to be a critical issue in 2025—is also caused by unreliable electricity and limited access to modern telecommunications networks. This lack of access restricts the participation of rural and remote communities in the digital economy.
However, the two-position rise in digital competitiveness this year was driven by significant technology investment. Indonesia has performed impressively in technology sectors such as banking and financial services (ranked 2nd), telecommunications investment (3rd), and venture capital for tech companies (5th).
Indonesia ranks 10th for its strong business agility for future readiness. Additionally, the widespread use of big data analytics (ranked 2nd) has helped boost Indonesia’s ranking among other countries worldwide.
