Indonesia Launches DEAL 2026 to Drive AI, Startups, and Digital Innovation
By Sarina Tareen
Indonesia is no longer asking “how” to expand Internet access. It is asking a better question: How can digital technology generate meaningful economic value?
The government introduced Digital Ecosystem Alignment (DEAL) 2026 in June 2026. This new digital agenda unified government agencies, technology companies, start-ups, universities, investors, and local communities under one platform. It aims to make digital growth more productive and create better businesses and services for the public. The initiative is based on three principles: “alignment of interests”, “shared responsibility”, and “national prosperity”.
Over the past decade, the digital economy has been steadily expanding in Indonesia. Over 81 percent of the population now uses the internet, more than 230 million people. The country’s digital economy was estimated at around US$99 billion in 2025, which is just under one-third of the total digital economy in Southeast Asia. Communication and Digital Affairs Minister Meutya Hafid said that Indonesia must not be only a market for foreign technology companies. Rather, it should develop its own innovations, keep more digital value at home and foster local competencies in cloud services, AI and digital infrastructure.
DEAL 2026 project has a measurable impact. The implementation of IoT technology in Sleman, Banjarnegara, and Lamongan has helped to improve the productivity of farm activities for fish farmers and farmers. AI training is supporting 100 to 150 MSMEs in Wonogiri and Banyuwangi. The government is also developing a Digital Addiction Response Assistance (DARA) program for digital addiction in children and an Ecosystem Dashboard as a national digital data platform.
Artificial intelligence is a central component of Indonesia’s digital strategy. Later this year, the government plans to introduce its first comprehensive AI regulation, featuring a National AI Roadmap, ethical guidelines, and risk-based governance. Indonesia’s goal is to foster innovation while simultaneously regulating potential issues like deepfakes, fraud, and the handling of personal information, as opposed to the EU’s more stringent stance. This vision will be discussed at the Second Asia AI Infrastructure Summit 2026 in Jakarta, where policymakers and industry leaders will explore trusted and scalable AI systems.
Also, there is significant focus on infrastructure. The government will expand the use of data centers across the country, strengthen cloud computing, boost investments in artificial intelligence, and promote the establishment of digital hubs in special economic zones such as Nongsa Digital Park in Batam. Meanwhile, Indonesia is investing in digital skills and talent, as AI can’t generate economic growth without skilled people. Challenges remain. Regional disparities remain, AI skills are limited, and inter-agency coordination is complex. One thing is clear in Indonesia’s strategy, however. The next big wave of digital transformation isn’t about making more people online. It is about technology making the lives of farmers, entrepreneurs, students, and small businesses better. The success of Indonesia will not be in developing smarter technology, but in developing the smartest technology. It will help build a sustainable and equitable economy.