Indonesia Pushes ASEAN to Finalize Digital Economy Agreement

TEMPO.CO, Jakarta – Indonesian Coordinating Minister for the Economy Airlangga Hartarto attended the 27th ASEAN Economic Community Council Meeting held in Cebu, the Philippines, on May 6-7, 2026. One of the main topics discussed at the meeting was how to resolve crucial issues in negotiating the ASEAN Digital Economy Framework Agreement (DEFA).

“Our definite target is to have the DEFA agreement signed by November this year (ASEAN Summit), after going through the legal scrubbing process and domestic consultations in each country,” said Airlangga in an official statement on Thursday, May 7, 2026.

Airlangga stated that the digital economy is developing very dynamically, and that ASEAN needs to respond wisely. According to him, the DEFA document is not yet perfect, but it needs to be completed quickly and remain open to periodic review as the digital economy develops.

The DEFA initiative was launched during Indonesia’s ASEAN leadership in 2023. The agreement is touted as the first comprehensive regional digital economy framework in the world and a driver of ASEAN’s digital economic integration.

According to a study by the Boston Consulting Group (BCG), comprehensive implementation of DEFA is estimated to increase the value of ASEAN’s digital economy from US$1 trillion to US$2 trillion by 2030.

All ASEAN member countries, Airlangga said, are committed to completing all negotiation substances in the 21st round scheduled for May 2026.

Airlangga said that the ratification process in each ASEAN member country is expected to be finished within 180 days of signing. He says this shows the urgency and commitment of ASEAN countries to quickly realize the benefits of DEFA.

For Indonesia, Airlangga said, DEFA is in line with the National Digital Economy Strategy 2030 and the accession process to the Organisation for Economic Co-operation and Development (OECD). The agreement is considered to support the strengthening of digital infrastructure, the development of digital human resources, the transformation of MSMEs, and the strengthening of cyber security regulations.

Through DEFA, Indonesia is also seen as having the opportunity to strengthen policies based on international practices, attract high-tech investments, strengthen national data sovereignty, and build an inclusive and competitive digital ecosystem.

The ASEAN Economic Ministers’ meeting was also attended by several economic officials from ASEAN member countries, including the Philippines’ Minister of Trade and Industry, Ma. Cristina Aldeguer-Roque, Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, and Timor-Leste’s Deputy Prime Minister and Minister of Economic Affairs Coordinator, Francisco Kalbuadi Lay.

Read: Indonesia Calls for ASEAN Unity Through Amity, Cooperation Treaty

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