Indonesia’s digital competitiveness is improving across most of the country, yet the human talent pillar is moving in the opposite direction. The gap is becoming more urgent as the country ranks among the world’s top 10 for generative AI users.
The East Ventures – Digital Competitiveness Index 2026 found that the national median digital competitiveness score rose from 38.8 in 2025 to 42.2 in 2026. A total of 37 out of 38 provinces also recorded higher overall scores.
Human capability is the weak point
Despite the broader gains, the human resources pillar fell by 2.5 points, making it the only component to weaken in the index. The decline signals that physical digital development has not been fully matched by people with the skills to use it productively.
The weakness is reflected in indicators covering the number of students, lecturers, digital-focused study programmes, and the digital literacy index. These measures point to a talent pipeline that is struggling to keep pace with the wider digital transformation.
| Indicator | Reported figure |
|---|---|
| National median score | Up from 38.8 in 2025 to 42.2 in 2026 |
| Provinces with higher scores | 37 out of 38 |
| Human resources pillar | Down 2.5 points |
| Research and development spending | About 0.3% of GDP |
The regional divide remains substantial. Digital human resource scores in Java are about 2.3 times higher than those in Sumatra and Kalimantan, while the gap with Maluku and Papua is close to threefold.
AI opportunity meets limited capacity
Indonesia has 229.4 million internet users, creating a large base for digital services and technology adoption. Social media use for business sales has increased by 20.7 points, while the financial services sector grew by 7.9%.
This expanding activity raises the stakes for digital talent. The source report estimates that AI could lift Indonesia’s gross domestic product by as much as 12%, equivalent to US$366 billion.
However, the potential cannot be fully realised without enough people capable of developing AI technology. Research and development spending remains at around 0.3% of GDP, adding to the constraints on the domestic innovation ecosystem.
The challenge is not limited to advanced technology developers. Broader digital literacy, access to relevant study programmes, and the supply of lecturers also affect whether communities can turn better connectivity into productive economic activity.
Education and industry need faster alignment
MySkill CEO Angga Fauzan identified the slow adaptation of formal education curricula to rapidly changing industry needs as a major obstacle. He said bootcamps and edtech platforms can serve as more agile bridges for equipping people with current practical skills.
Such pathways may help workers strengthen existing capabilities and acquire new ones as technology requirements evolve. They also address the need for learning models that can respond more quickly than conventional curriculum cycles.
East Ventures partner Melisa Irene stressed the importance of cooperation between government, educational institutions, and industry. She said this collaboration is crucial for accelerating upskilling and reskilling and for building future talent capable of producing globally competitive digital innovation.
Stronger infrastructure has created a more favourable base for Indonesia’s digital economy, but human capability will determine how widely the gains are shared. Closing the talent gap across regions remains central to converting AI adoption and digital growth into broader economic value.