Aadhaar draws interest as Indonesia, India sign MOU on digital transformation

The governments of India and Indonesia have entered into strategic cooperation to accelerate sustainable digital transformation.

A memorandum of understanding between Indonesia’s Ministry of Communication and Digital Affairs and India’s Ministry of Electronics and Information Technology includes language on the development of AI and Internet of Things (IoT) tech, as well as work on digital public infrastructure (DPI), cybersecurity and human resource capacity building, according to a report from the Antara news agency.

A Joint Working Group will lead the collaboration, monitor progress and convene regularly for status updates on digital ID and other initiatives.

Digital transformation is a top priority for President Prabowo Subianto’s administration, as the country looks to establish itself as a global leader in a digital world. It is among the president’s key priorities for progress, as it pursues its larger Golden Indonesia 2045 Vision, which looks to bridge the digital skills gap and establish AI innovation and governance.

Indonesia’s digital economy, among the fastest growing in Southeast Asia, is projected to exceed $130 billion by 2025, according to a report by the U.S. International Trade Administration.

Aadhaar a ‘proven, successful strategy,’ says minister

The country’s Minister of Communication and Digital Affairs Meutya Hafid says that as a partner, India has demonstrated a commitment to sharing knowledge and experience in building a “robust and impactful digital ecosystem,” which can help it achieve its goals more quickly.

She says the Aadhaar biometric digital identity system is of particular interest, calling it “a key foundation to enhance public services, transparency, and efficiency.” Noting the need for concrete solutions, the minister says Aadhaar is a “proven, successful” strategy for implementation.

India’s digital ID system makes sense as a model for Indonesia, home to the world’s fourth-largest population spread across more than 17,000 islands. As of July 2024, about 1.38 billion Indians had registered for digital ID through Aadhaar – an impressive chunk of the world’s largest population.

“Government digitalization is no longer an option but an urgent need,” Hafid says. “Indonesia is ready to collaborate with India to adopt and adapt to cutting-edge technology, especially in the development of digital identity.”

In addition to the MOU on digital transformation, India and Indonesia have further strengthened their close political ties with new pacts on maritime security, health, traditional medicine and culture.

Article Topics

Aadhaar  |  digital economy  |  digital government  |  digital identity  |  government services  |  India  |  Indonesia