Indonesia’s digital competitiveness score rose to 42.2 in 2026, up from 38.8 in 2025, according to East Ventures‘s Digital Competitiveness Index 2026, marking a more than 50 percent increase in the average provincial score since 2020.

The report, launched with Katadata Insight Center, measures digital competitiveness across 38 provinces and 157 cities and regencies. It found that 37 out of 38 provinces recorded an improvement in score. The top 10 provinces remain dominated by Java, with DKI Jakarta and West Java ranking first and second for the sixth consecutive year; followed by East Java, Banten, DI Yogyakarta, East Kalimantan, Bali, Central Java, Riau Islands, and South Sulawesi.

Southwest Papua recorded the largest ranking surge, climbing 15 spots, supported by growth in the infrastructure pillar driven primarily by an increase in the 4G-connected village ratio. Despite improvements across most provinces, the gap between the highest and lowest-scoring provinces has not narrowed significantly, with DKI Jakarta outperforming the lowest-ranked province by nearly 60 points.

Willson Cuaca, Co-Founder and Managing Partner at East Ventures, said Indonesia’s competitive advantage now features driving efficiency across data collection, integrated data processing platforms, and trustworthy information distribution. Those features can turn digital infrastructure into a tangible digital dividend for all Indonesians.

The report also showed that while digital adoption continues to expand, the next phase of Indonesia’s digital transformation depends on translating digital capacity into stronger productivity, digital entrepreneurship, and higher-quality employment. The pace of digital talent development has begun to moderate even as the rapid advancement of AI shifts demand toward more advanced competencies, particularly the ability to integrate AI into business processes, products, and public services, according to the report.

Based on its findings, the report identified four priorities for strengthening Indonesia’s digital competitiveness: promoting collaboration across government, private sector, and academia; expanding digital connectivity to close regional disparities; accelerating digitalization of micro, small, and medium enterprises; and building a future-ready digital workforce with stronger AI competencies.

East Ventures stays “cautiously optimistic” on Southeast Asia tech ecosystem in 2026