By: Anit Mukherjee
The following piece originally appeared as part of the series, Jakarta Edit 2025 — a new short essay series from ORF.
The Indo-Pacific region has garnered significant attention due to its strategic position with converging economic, geopolitical and security interests linked to free and open movement between the Indian and Pacific oceans. The region now accounts for over 62 percent of the world’s GDP, with countries represented in various regional and global groupings, including the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Association of Southeast Asian Nations (ASEAN), Group of Twenty (G20), BRICS, and the Quadrilateral Security Dialogue (Quad). Digital connectivity to foster an inclusive digital economy — with cross-border flows of technology, payment, and data, in addition to goods and services — is playing an increasingly prominent role, with digital public infrastructure (DPI) emerging as a key instrument of collaboration to ensure a free, open and secure Indo-Pacific.
The importance of digital connectivity and DPI was underscored during the COVID-19 pandemic, when trade and tourism – two of the most critical sectors of the Indo-Pacific region – were severely disrupted. Emerging from the pandemic, however, countries in the region possess several advantages that can be strengthened through greater cooperation and collaboration. The region is home to the world’s largest and most rapidly growing base of data consumers, accounting for a little over half of all internet users globally, with over 90 percent penetration of smartphones connected to high-speed mobile networks. The vibrant digital ecosystem is buoyed by booming e-commerce and fintech applications, many of which are local firms competing with global giants.
In response to the lessons of the pandemic, governments in the Indo-Pacific region are investing in digital infrastructure and transitioning towards “digital-first” governance, particularly for the delivery of public services, subsidies, and transfers. As geopolitics become increasingly relevant in the technology domain, countries across the region are also focusing on building both domestic capacity and trusted partnerships to harness digital transformation in line with their needs and priorities.
Digital connectivity lies at the heart of the future prosperity of the Indo-Pacific region. Universal coverage of cellular and data networks enables citizens to participate in the digital economy. It also advances financial inclusion, access to public services, and drives transformation across sectors such as agriculture, education, health, energy, and mobility. In a region facing challenges of food and energy security, disparities in education and health outcomes, and the need to build resilience in the face of a changing climate, improved digital connectivity can help better the targeting of public expenditure, catalyse investments in sectors such as e-commerce and fintech, and support sustainable development policies, including the transition to clean energy.
For this to happen, the Indo-Pacific requires a coherent framework for cooperation in the digital domain. One pathway is the development of collaborative digital public infrastructure that leverages the relative strengths of the partners. DPI is an evolving concept described as a set of shared digital systems – such as digital identification, payment, and data exchange protocols – that are secure, reliable, and interoperable. As in the case of India, these systems are supported and built by both the public and private sectors to ensure equitable access and enhance public service delivery at scale. Governed by the principle of digital sovereignty and in accordance with each country’s legal frameworks (such as identity and data protection laws), the objective of DPI is to support inclusive development and cultivate an innovation ecosystem that not only serves domestic needs but can also be deployed across borders.
The contours of DPI collaboration are already taking shape in the Indo-Pacific region. Most countries in the region now have some form of digital ID that facilitates access to financial and public services. The recently released World Bank Findex indicates that over 85 percent of adults in the region have access to a financial account, predominantly with a formal banking institution. This has spurred the growth of a fintech ecosystem that supports cross-border transactions, such as the integration between India’s Unified Payment Interface (UPI) and Singapore’s PayNow.
As more countries adopt DPI frameworks for financial transactions, there is significant scope to connect the region through trusted and secure networks, with each country maintaining sovereignty and regulatory oversight. This can have a meaningful impact on trade facilitation, cross-border e-commerce, and technology services, all of which have the capacity to generate employment for the region’s rapidly expanding workforce, particularly the digitally connected youth.
Despite notable progress in digitalisation, much of the Indo-Pacific region comprises countries that continue to face development challenges that require collaborative, well-financed solutions. At the same time, the region is replete with technological innovations aimed at improving health, agriculture, education and skilling, energy access, and rapid urbanisation — often through a DPI-led approach. Drawing from these experiences and adapting them to national or regional contexts can enable transformative change to occur within short timeframes.
With the G20 and the Quad putting their weight behind greater adoption of DPI across the region, the Indo-Pacific is poised to become an incubator for practical ideas that harness technology for the global good.
Anit Mukherjee is Senior Fellow for the Global Economics & Development program at ORF America.