### Main Development: Indonesia Advances ASEAN Digital Economy Framework and Hosts Major Tech Event
Indonesia is accelerating efforts to finalize the ASEAN Digital Economy Framework Agreement (DEFA) while launching key initiatives at the BATIC 2025 event to boost its digital sector.

### Key Facts and Context
– On August 31, 2025, Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, urged faster completion of the DEFA, projecting it could grow Southeast Asia’s digital economy to $2 trillion by 2030.
– The Bali Annual Telkom International Conference (BATIC) 2025 kicked off in Bali, themed “Igniting Tomorrow’s Digital Evolution,” with hundreds of global leaders discussing AI, infrastructure, and digital innovation.
– Telkom Indonesia launched an AI Excellence to Boost National Tech Ecosystem">Center of Excellence at the event, focusing on four pillars: AI adoption, university collaborations, startup support, and aid for small businesses (UMKM).
– A new eTrade Readiness Assessment, released in partnership with UNCTAD and Indonesia’s Foreign Ministry, highlights e-commerce potential for empowering SMEs, women, youth, and remote communities, amid near-universal internet access in a population where half are under 30.
– Broader trends show Southeast Asia’s AI infrastructure investments rising from $13.7 billion in 2024 to over $30 billion by 2030, driven by tech giants like Microsoft, Google, Amazon, and Nvidia expanding in Indonesia and neighbors.

### Why This Matters
These steps position Indonesia as a digital leader in Southeast Asia, its largest market, by fostering inclusive growth in e-commerce, fintech, and AI. The DEFA could unlock massive economic value, creating opportunities for startups and jobs, but success depends on addressing inclusion gaps for underserved groups. The AI Center and BATIC event signal practical support for innovation, potentially attracting more foreign investment amid a booming regional tech ecosystem. However, uncertainties remain around regulatory hurdles and equitable access.

### What to Watch for Next
Monitor negotiations on the DEFA at upcoming ASEAN meetings, which could finalize terms by late 2025. Track outcomes from BATIC 2025, including new partnerships or funding announcements for Indonesian startups. Watch for updates on the eTrade Assessment’s implementation, as well as any investment deals from global tech firms in Indonesia’s AI and digital infrastructure.