Covid-19 has equalized digital competitiveness across Indonesia’s provinces, says East Ventures report

The accelerated digital transformation brought on by the Covid-19 pandemic has equalized the digital competitiveness across provinces in Indonesia, a report from East Ventures noted.

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The East Ventures Digital Competitiveness Index (EV-DCI) 2021 is a report by the prominent Indonesian investor that assesses the archipelago’s digital economic condition to identify opportunities that lie in the country.

In this year’s report, which can be accessed here, East Ventures found that digital adoption in Indonesia has reached new highs, touching a 73% internet penetration rate across 34 provinces and 25 major cities. Indonesia’s digital competitiveness index score increased year on year, data showed.

The median competitiveness score of the 34 provinces also increased, meaning that digital competitiveness has become more equal between areas. This signals greater untapped opportunities for economic growth.

Data from the EV-DCI report also showed that there are two drivers of growth and equality of Indonesia’s digital competitiveness amid the pandemic: more equally distributed infrastructure development and increased spending for information and communications technology across provinces.

Jakarta still leads the overall digital competitiveness on the provincial level, followed by West Java and East Java. Bali and the Riau Islands are the two provinces that saw significant increases in scores, with the former landing in fourth and the latter in seventh place.

“Like a slingshot that is being pulled backward, Indonesia’s digital economy will be ready to propel faster toward its golden era after the pandemic has subsided,” said Willson Cuaca, co-founder and managing partner at East Ventures.

Other pillars in the report that saw an increase in their scores include human capital, economy, entrepreneurship and productivity, finance, and regulations and regional government’s capacity.