East Ventures, one of Southeast Asia’s leading venture capital firms, released its sixth annual Digital Competitiveness Index (EV-DCI), revealing steady gains in Indonesia’s digital landscape, particularly among underdeveloped regions.
The 2025 report, produced in partnership with Katadata Insight Center, reflects rising digital inclusivity as more provinces close the gap with digitally dominant regions like Jakarta and West Java.
This year’s index registered an overall national score of 38.8, up from 38.1 in 2024 and 35.2 in 2022. The most marked improvements came from increased internet adoption among workers and broader 3G and 4G coverage in rural areas.
Papua posted the strongest gain, jumping 14 places to rank 20th amid strong economic growth of 7.8% in 2024.
While the top 10 rankings remain largely dominated by Java-based provinces, Banten climbed into third place behind DKI Jakarta and West Java. The competitiveness gap between the highest- and lowest-scoring provinces has narrowed, with Highland Papua at 21.6 versus Jakarta’s 78.4, a spread of 56.9—down from 60.4 in 2024.
East Ventures attributes the momentum to rising innovation and adoption of technologies such as artificial intelligence, blockchain, and IoT. AI investment alone reached $542.9 million by 2024, rising 141.5% from 2020 levels.
The report also highlights the growing role of AI among East Ventures’ portfolio companies. Fintech player Xendit leverages AI for fraud detection, while MSME platform Mekari supports over 30,000 businesses with AI-powered back-office solutions. Stockbit, Komunal, and Meeting.ai were also cited for embedding AI into key operational areas.
The EV-DCI 2025 is seen as a strategic blueprint aligned with Indonesia’s Golden 2045 vision, aimed at building a digitally inclusive economy. East Ventures has also committed S$300 million with SEEDS Capital to develop deep tech startups in Singapore, with anticipated spillover benefits to the Indonesian ecosystem.
Business News Asia