Indonesia's Digital Competitiveness Rises in 2023, Driven by Human Resource Readiness and Government Role

The East Ventures-Digital Competitiveness Index (EV-DCI) has again measured digital competitiveness across all Indonesian provinces. Overall, the digital competitiveness score reached 38.5 points in 2023, an increase from 35.2 points in 2022.

The score scale is 0-100 points. Higher scores indicate better competitiveness.

The EV-DCI index is composed of three sub-indices: input, output, and supporting factors. All sub-index scores increased, driving the overall EV-DCI score increase this year.

The input sub-index reached 40.1 points in 2023, up from 35.1 points in 2022. This sub-index assesses the readiness of human resources (HR), expenditure, and technology usage.

The output sub-index achieved 31.2 points in 2023, up from 30.4 points the previous year. The output category measures the progress of digitalization, including entrepreneurship, productivity, and employment conditions.

Finally, the supporting factors sub-index scored 50.8 points in 2023, up from 42.9 points in 2022. This sub-index received the highest score among the others.

The supporting factors sub-index focuses on government support, including infrastructure, finance, and the capacity and regulations of local governments.

(See also: [This Comparison of Digital Adoption Rates for MSMEs in Indonesian Regions](https://databoks.katadata.co.id/datapublish/2022/11/20/ini-perbandingan-tingkat-adopsi-digital-umkm-di-wilayah-indonesia))

Willson Cuaca, Co-Founder and Managing Partner of East Ventures, noted that internet and digital adoption rates are becoming more widespread, although not yet perfect.

“Furthermore, many Indonesian startups have realized the importance of strengthening business fundamentals, rather than simply increasing user growth in the short term,” said Willson in the report titled *Digital Competitiveness Index 2023, Digital Justice for All Indonesian People*.

In addition to the three sub-indices, the score is also based on nine pillars and 50 indicators. The research was conducted by Katadata Insight Center (KIC) and PwC Indonesia, marking the final edition since its launch in 2020.

This index summarizes a comparison of digital competitiveness across 38 provinces and 157 cities/regencies in Indonesia. In data collection, the EV-DCI team also surveyed digital companies and startups, as well as consumers of digital applications.

The survey of company perceptions of digital competitiveness involved more than 39 digital companies and startups from November 2022 to January 2023. The survey of consumers of digital applications involved 2,209 people in December 2022.

The methods used in this survey included online questionnaire completion via website links. For digital companies and startups, surveys were conducted online and via telephone (telesurveys).

The complete EV-DCI 2023 report can be downloaded here: [http://east.vc/dci](http://east.vc/dci).

(See also: [Indonesia's Digital Competitiveness 2023, from Jakarta to the New Papua Province](https://databoks.katadata.co.id/datapublish/2023/04/05/daya-saing-digital-indonesia-2023-dari-jakarta-sampai-provinsi-baru-papua))