Google.org Backs Indonesia Open Network to Accelerate AI-Powered Digital Commerce for Millions of MSMEs

JAKARTA, Investortrust.id — Indonesia has taken a major step toward building its next generation of Digital Public Infrastructure with the launch of the Indonesia Open Network (ION), an interoperable digital commerce ecosystem backed by Google.org, the Government of Indonesia, Networks for Humanity and a coalition of leading technology partners from Indonesia and India.

The initiative aims to connect millions of Micro, Small and Medium Enterprises (MSMEs), farmers, cooperatives and local businesses into a shared AI-enabled digital commerce infrastructure that expands access to markets, logistics, digital payments, financing and government services.

Indonesia is pursuing Digital Public Infrastructure (DPI) as a strategic foundation for inclusive economic growth ahead of its Indonesia Emas 2045 vision.

Rather than creating another standalone e-commerce marketplace, ION is designed as a national interoperability layer that allows existing marketplaces, applications and service providers to work together through open protocols. The model is intended to reduce fragmentation, lower costs for small businesses and encourage greater innovation across Indonesia's digital economy.

The initiative also reflects growing collaboration between Indonesia and India on open digital infrastructure, while highlighting Google's expanding role in supporting AI-enabled public digital ecosystems across emerging markets.

Indonesia's Ministry of Micro, Small and Medium Enterprises (Kementerian UMKM) is integrating ION into its SAPA UMKM program through PASAR SAPA, an interoperable transaction layer that transforms the platform into a nationwide digital commerce ecosystem connecting MSMEs with buyers, logistics providers, financial institutions and public services.

"Our vision is that every Indonesian MSME has an equal opportunity to participate in the digital economy, regardless of size or location," Minister of Micro, Small and Medium Enterprises Maman Abdurrahman said during the official launch in Jakarta.

"Through SAPA UMKM and the Indonesia Open Network, we are creating an open ecosystem that connects entrepreneurs with markets, logistics, finance, integrated public services, and AI-based services. This collaboration demonstrates how Digital Public Infrastructure can be a powerful engine for inclusive economic growth," he said.

ION is built around a simple principle: "Join Once. Sell Everywhere."

Instead of requiring businesses to register separately across multiple commercial platforms, MSMEs connect once and become discoverable across an expanding network of buyer applications while gaining access to interoperable logistics, digital payments, financing, insurance and other business services.

By separating digital infrastructure from commercial applications, the platform seeks to increase competition, reduce transaction friction and provide greater choice for both businesses and consumers.

Google Cloud is supporting the technical deployment of the platform by providing access to open-source technologies. Separately, Google.org, Google's philanthropic arm, is funding ION's incubation phase to help accelerate digital commerce opportunities for underserved communities, including rural entrepreneurs and micro-enterprises.

"For a rural artisan, farmer, or youth entrepreneur, DPI acts as an invisible digital highway that lowers costs and democratizes trade where traditional e-commerce falls short," said Anil Bhansali, Vice President of Engineering at Google Cloud.

"Our deep experience supporting DPI across global markets, from India to Africa, has proven that open, reusable infrastructure can successfully scale to empower neighborhood merchants and smallholder farmers. Working with ION and our global partners Beckn Labs and the World Bank, we are helping unlock direct economic opportunity for those who need it most," he added.

The initiative also welcomes Networks for Humanity (NFH) as its Knowledge Partner, contributing international expertise in building open, interoperable digital ecosystems.

Supporting ION is an expanding coalition of Founding Ecosystem Partners, including Indosat Ooredoo Hutchison, Protean e-Gov Technologies, Pidge, Remiges, Bajaj-Maxride, PlaceOrder, Haqdarshak, Integra Microsystems, Moving Tech Innovations, Infinys and Blitz.

Together, these organizations span telecommunications, Digital Public Infrastructure, Artificial Intelligence, logistics, mobility, enterprise technology, financial inclusion and digital commerce.

ION also represents one of the most significant implementations of the Memorandum of Understanding on Digital Development signed between Indonesia and India during President Prabowo Subianto's state visit to India in January 2025.

Drawing lessons from India's Open Network for Digital Commerce (ONDC), Indonesia has adapted the open-network model to suit its own geography, economy and national development priorities.

"The real strength of open networks lies in creating shared infrastructure that allows innovation to flourish across an entire ecosystem rather than within individual platforms," said T Koshy, Advisory Council Member of Indonesia Open Network and Founding Managing Director and CEO of India's ONDC.

"The support of Google.org and the commitment of our Founding Ecosystem Partners reflect growing confidence that open, interoperable Digital Public Infrastructure can become a catalyst for innovation, competitiveness and sustainable national growth," he said.

Complementing the national commerce platform is ION Hyperlokal, which is designed to build localized digital economies by connecting villages, districts, traditional markets, farmers, delivery providers and community enterprises into interoperable local commerce ecosystems.

The first phase of implementation will establish digital commerce ecosystems across selected regions of Indonesia, integrating MSMEs, logistics providers, financial institutions, buyer applications and community organizations into shared digital infrastructure.

The program is expected to strengthen economic participation among women-led businesses, rural entrepreneurs, farmers and informal workers while expanding access to payments, financing, insurance and essential digital services.

Indonesia Open Network said the initiative has been built on the principle that national Digital Public Infrastructure succeeds through collaboration between government, technology companies, financial institutions, logistics providers, developers, universities, startups and local communities.

"Indonesia has an opportunity to build one of the world's most inclusive digital economies by investing in shared digital infrastructure rather than isolated digital platforms," said Shinta Kamdani, Chairperson of the Advisory Council of Indonesia Open Network and Chairperson of APINDO.

"Indonesia's implementation represents an important evolution of these principles and demonstrates how countries can adapt open digital commerce to meet their own national priorities," she said.

As Indonesia advances toward its Indonesia Emas 2045 vision, ION positions Digital Public Infrastructure as a foundation for a more open, AI-enabled and inclusive digital economy.