Indonesia Urges ASEAN to Seal Digital Trade Deal Amid Rising Protectionism
By Asian Legal Review Staff | May 20, 2026
Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has urged Southeast Asian nations to fast-track the completion of the ASEAN Digital Economy Framework Agreement (DEFA), calling the landmark regional pact critical to sustaining growth amid global economic uncertainty, geopolitical tensions and rising protectionism.
Speaking before business leaders during the Indonesia-Philippines business forum held in Lapu-Lapu City on May 7, 2026, Hartarto stressed that ASEAN must move quickly to finalize the agreement during the Philippines’ leadership of the regional bloc, warning that prolonged negotiations could delay opportunities in one of the fastest-growing sectors of the economy. “The whole world is looking at DEFA,” Hartarto said, noting that negotiations have already gone through around 20 rounds since discussions began under Indonesia’s ASEAN chairmanship in 2023. “We don’t need perfection, but we need to move on.”
The proposed agreement aims to establish a common framework for digital trade, electronic commerce, digital payments, data governance and other areas of the digital economy across the 10-member ASEAN bloc. Analysts say the deal could help harmonize digital regulations across Southeast Asia, lower business costs and accelerate cross-border investments, particularly in fintech, e-commerce, cloud computing and digital infrastructure. Hartarto described DEFA as the region’s response to growing economic risks including energy price volatility, food security concerns and global trade tensions. “This is the economy of the younger generation. This is the economy that is not prone to tariff war,” he said.
The Indonesian minister also revealed that Jakarta had already resolved its issues related to the agreement and called on other ASEAN members to compromise to complete negotiations. “We can always evaluate implementation for every country,” he said, adding that no single nation should dictate how others implement digital policies. Beyond digital cooperation, Hartarto pushed for stronger collaboration between Indonesia and the Philippines in nickel processing, special economic zones, agriculture and fertilizer supply as both nations seek to strengthen regional supply chains.
Source: SunStar Publishing Inc., “Indonesia urges ASEAN to seal digital trade deal” (May 19, 2026).