Digital infrastructure is a critical enabler of digital competitiveness in Indonesia. However, substantive gains in competitiveness are realized only when infrastructure development is pursued in tandem with strengthened digital governance and increased technology adoption by both the public and private sectors. These insights are detailed in the latest East Ventures – Digital Competitiveness Index (EV-DCI) 2026 report.
Improvements in digital infrastructure are effectively expanding access to the digital economy. Nationally, the “Entrepreneurship and Productivity” pillar was the primary contributor to the rise in the EV-DCI 2026, underpinned by robust technology adoption, which has subsequently catalyzed increased digital economic activity.
In terms of governance and regulation, various regions have begun integrating digital-based public services, enhancing the implementation of the Electronic-Based Government System (SPBE), and broadening the scope of electronic transactions at the local government level. Consequently, the “Regional Government Regulation and Capacity” pillar emerged as one of the components with the most significant national growth.
Infrastructure and governance driving regional performance
The trajectory of EV-DCI scores across provinces reveals a diverse pattern of progress. In several regions, advancement is primarily propelled by digital infrastructure development, while others have achieved gains through strengthening digital governance, cultivating digital talent, or accelerating technology adoption.
Southwest Papua experienced the most notable acceleration in the EV-DCI 2026. Indonesia’s youngest province surged 15 places, rising from 33rd to 18th nationally, with its digital competitiveness score increasing from 34.9 to 43.8.
This improvement was driven by the expansion of digital infrastructure—most notably the increasing number of villages gaining 4G coverage and the introduction of Hyper 5G services in Sorong. This enhanced connectivity has been directly followed by a rise in digital economic activity, with QRIS transaction volume growing by 280.6% (YoY) and the number of QRIS merchants increasing by 24.5%.
In Eastern Indonesia, South Sulawesi successfully re-entered the national top 10, climbing one spot to 10th position with a score of 48.9. This improvement was largely supported by significant advances in digital government.
The “Regional Government Regulation and Capacity” pillar in South Sulawesi surged by more than 20 points, bolstered by improvements in the SPBE index, the acceleration of digital transactions by local governments, and strengthened cybersecurity measures.
Concurrently, South Sulawesi’s economy grew by 6.9% in the first quarter of 2026, with an expanding contribution from the information and communication sector.
These findings suggest that once the foundation of connectivity is established, strengthening digital governance is a primary driver of improving regional digital competitiveness.
East Kalimantan also recorded consistent growth, rising two ranks to 6th nationally with a score of 52.4. It remains the only province outside of Java to enter the top six in the EV-DCI 2026 rankings.
The “Free Village Internet” program, initiated by the East Kalimantan Provincial Government, reached 802 out of 841 villages by the end of 2025—effectively expanding access to digital public services, education, and MSME marketing. This initiative has bolstered MSME growth and contributed to a 17.4% annual increase in bank credit.
On Java, East Java rose to 3rd place nationally with a score of 58.0, driven by improved digital infrastructure quality, the expansion of 4G BTS, and the integration of digital public services.
Meanwhile, Central Java climbed to 8th position with a score of 51.7. The expansion of free internet access to 327 villages—including remote blank spots and areas experiencing extreme poverty—has strengthened the foundation for the province’s digital transformation.
From an economic perspective, Central Java recorded 5.4% (YoY) growth, a 28.9% increase in investment realization, and achieved a Local Government Transaction Electrification Index (ETPD) score above 90% across all 35 of its regencies and cities.
These achievements demonstrate that digital infrastructure development, when reinforced by strong governance and active economic engagement, can significantly accelerate improvements in regional digital competitiveness.
