Indonesia has taken a significant step towards inclusive digital transformation with the launch of the Indonesia Open Network (ION), an open digital infrastructure inspired by India’s Open Network for Digital Commerce (ONDC). The initiative was officially unveiled at the 12th annual Indonesia Economic Forum (IEF) in Jakarta on 5 February 2026.
Launched under the theme “Digital Archipelago: Building Inclusive Digital Commerce in Indonesia”, ION is designed to expand market access, reduce transaction costs and enhance the competitiveness of Indonesia’s micro, small and medium enterprises (MSMEs). The network adopts the core principles of India’s ONDC—open standards, interoperability and decentralisation—while being tailored to Indonesia’s unique economic and geographic context.
Opening the forum, Sachin V. Gopalan, CEO and Founder of the Indonesia Economic Forum, said Indonesia’s digital challenge has evolved from physical connectivity to truly inclusive digital participation. He described ION as a “network of networks”, rather than a single platform, built to foster trust, openness and equitable access for businesses of all sizes.
The launch brought together senior policymakers, industry leaders and international partners from Indonesia and India, underlining the growing bilateral cooperation on digital public infrastructure. Dr Ilham A. Habibie, Chairman of the Indonesian Engineers Association (PII), stressed the importance of aligning technical systems with policy frameworks to ensure digital innovation delivers tangible industrial impact.
Highlighting the ONDC connection, Sandeep Chakravorty, India’s Ambassador to Indonesia, said ION represents the most advanced adaptation of India’s open commerce model. He noted that while conventional platforms can charge commissions of up to 20 per cent, ION is expected to operate at network fees of around 2–3 per cent, significantly lowering barriers for small businesses. He added that Indonesia could become the fastest adopter of open digital networks by learning from India’s ONDC experience.
Indonesia’s Vice Minister of Communication and Digital, Nezar Patria, said ION is a national economic strategy rather than a standalone technology project. He explained that the open, decentralised network will connect buyers, sellers and logistics providers through interoperable standards, giving MSMEs greater choice, visibility and control. The initiative will also integrate with the Garuda Spark programme, which aims to nurture two million Indonesian technopreneurs.
Addressing digital inequality, MSME Minister Maman Abdurahman said Indonesia’s 64.2 million MSMEs contribute more than 60 per cent of GDP and employ 97 per cent of the workforce, yet many remain locked into closed digital ecosystems with high costs. He said ION, inspired by ONDC’s inclusive design, is intended to create fairer access to national and digital markets.
Industry leaders echoed the need for open infrastructure. Shinta Kamdani, Chair of the Indonesian Employers Association (APINDO), said MSME readiness must be supported by scalable digital infrastructure, warning that digitalisation without openness would not deliver inclusive growth.
Beyond goods-based commerce, ION is expected to enable transactions across services such as healthcare, education, agriculture and financial services. T. Koshy, Founding Managing Director and CEO of ONDC, described ION as a shift from platform-centric to network-centric digital commerce, effectively creating an “internet of transactions” for Indonesia.
Experts also linked the initiative to the future of artificial intelligence. Dr R.S. Sharma, former Chairman of ONDC India, said inclusive transaction data from MSMEs is critical to prevent AI bias and ensure digital innovation benefits grassroots communities.
The Indonesia Economic Forum concluded that ION—drawing on India’s ONDC model—will form the backbone of Indonesia’s digital economy as it works towards becoming a top five global economy by 2045. With strong government backing, cross-sector collaboration and deepening India–Indonesia cooperation, ION is expected to reduce transaction costs, strengthen data sovereignty and position Indonesia as a regional leader in digital public infrastructure. |
