Indonesia’s Divided Digital Economy

Abstract

In this essay, I discuss the nature of Indonesia’s digital economy and digital divide by reviewing previous research reports and statistics. I then analyse them in the light of original data from the ISEAS Indonesia National Survey Project (INSP) carried out in May 2017, with a nationally-representative sample of 1620 respondents drawn from all 34 provinces. The data in the survey cover economic, social, and political issues, and are not designed to focus specifically or comprehensively on ICT topics. However, as it is based on a nationally-representative sample, the findings reveal very useful insights about the use of ICTs outside urban centres. The result reveals a particular correlation between education level and internet use, highlighting the need for the government to address digital ICT literacy and education. It also reveals a prevalence of the practice of purchasing social media accounts, raising the possibility of an important relation to political and sectarian divides. I end by highlighting policy responses for narrowing the digital divide.