ASEAN Must Pivot to Integrated Digital Ecosystem to Stay Competitive, Indonesia Tells Davos

Southeast Asia must transition from fragmented digital policies to a unified, secure, and sustainable regional ecosystem to maintain its edge in an increasingly competitive global economy, Indonesia’s communications chief told global leaders on Tuesday.

Meutya Hafid, Indonesia’s Minister of Communication and Digital Affairs. Source: Info Publik

DAVOS — Speaking at the World Economic Forum (WEF) 2026, Meutya Hafid, Indonesia’s Minister of Communication and Digital Affairs, emphasized that digital integration is now the primary determinant of ASEAN’s (the Association of Southeast Asian Nations) regional competitiveness.

Hafid highlighted Indonesia’s push for an interoperable regional economy through the expansion of cross-border payment systems—such as the Quick Response Code Indonesian Standard (QRIS)—and the acceleration of the ASEAN Digital Economy Framework Agreement (DEFA).

"QRIS is already linked with partners including Singapore, Malaysia, and Thailand. This integration reduces trade barriers, lowers transaction costs, and broadens access to regional markets," Hafid said during a keynote session titled New Pathways: ASEAN Growth & Productivity. "Beyond payments, digitalization is a fundamental driver of productivity."

The Minister positioned DEFA as a critical foundation for the 10-member bloc, designed to harmonize standards, enable seamless cross-border services, and eliminate the regulatory fragmentation that has historically hindered growth.

"DEFA sends a clear signal that ASEAN is building its own digital integration and will not merely be a follower in the global tech landscape," Hafid added.

Key Pillars of the Strategy

The Indonesian government’s roadmap for regional digital transformation focuses on three primary objectives:

• Regulatory Certainty: Creating a predictable environment for businesses to operate across borders.

• MSME Empowerment: Expanding market access for Micro, Small, and Medium Enterprises, which form the backbone of Southeast Asian economies.

• Trust and Security: Enhancing consumer confidence in cross-border digital transactions.

The push for digital unity comes as Southeast Asia seeks to capitalize on its massive internet-native population. While the Minister did not cite specific budget allocations, Indonesia continues to invest heavily in digital infrastructure, including fiber optic networks and satellite technology, to bridge the connectivity gap.

Hafid concluded by reaffirming Indonesia’s readiness to collaborate with both regional neighbors and global partners to ensure the transformation remains secure and inclusive. "We believe ASEAN can compete globally and deliver prosperity for all member states," she said.