Analysis: With Deadline Approaching, Only 8 Percent of Indonesians Have Adopted Digital ID
The government aimed to have 220 million citizens enrolled in its digital ID system by June 2024.
Analysis
An ambitious plan to mandate digital IDs on cellphones for all Indonesians by June 2024 is projected to fall short of its goal, with only an eight percent adoption rate reported in February of this year.
Indonesia, the largest economy in Southeast Asia with a GDP of US$1.05 trillion, is forecasted to have a digital economy worth US$130 billion by 2025.
The Digital Population Identity (IKD) initiative aimed to enhance public service accessibility, particularly for rural residents, who constitute half the country’s population as of 2022 (115,892,393 people).
The digital wallet feature of the system offers a range of services from banking to event ticketing.
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An “instant digital payments service” featuring money transfer platforms like GoPay, OVO, LinkAja, DANA, and the national payment gateway, QRIS, is part of the project.
Funded by the World Bank, the initiative receives US$250 million from the organization.
Low Adoption Attributed to Limited Financial Access
With less than eight million out of the expected 220 million activating their digital IDs, the government faces significant challenges in meeting its 2024 target.
The deadline was set by former President Joko Widodo in 2018.
