ASEAN’s digital economy rulebook is nearly written

For Australia, DEFA marks the beginning of a new phase of engagement.

Research and innovation are an obvious starting point. Australian universities, research institutes and businesses are well placed to partner with counterparts across Southeast Asia to develop, test and commercialise emerging digital technologies. ASEAN’s diverse markets provide an environment to refine new solutions at scale, while giving Australian firms access to one of the world’s fastest-growing digital economies.

Australia can also contribute through digital governance. Its experience in cybersecurity, regulation and consumer protection is increasingly relevant as ASEAN members grapple with data governance, online safety and platform regulation. Australia’s move to set a minimum age of 16 for social media users (Opens in new window) has drawn interest across the region, with countries including Indonesia and Malaysia considering similar approaches. Sharing regulatory experience in these areas would complement DEFA’s ambition to build a trusted and resilient digital economy.

This is the larger opportunity. DEFA should be more than a regional integration exercise – it should become the platform for a deeper ASEAN–Australia digital partnership. If implemented well, it will strengthen regional integration and create new opportunities for businesses – including MSMEs – on both sides to innovate, invest and trade.

Ultimately, DEFA will not be judged by the agreement governments sign, but by what businesses and individuals build with it. If it enables the next generation to collaborate, innovate and scale across borders, it will become more than a trade agreement. It will provide the foundation for a more integrated, competitive and inclusive digital economy across Southeast Asia – and a stronger digital partnership with Australia.

That responsibility will increasingly fall to the next generation of entrepreneurs, developers and digital creators across Southeast Asia and Australia. They are already driving the region’s fastest-growing sectors – from e-commerce and fintech to AI, gaming and the creative economy. Their success will determine whether common rules are turned into practical innovations that create jobs, expand markets and improve services.

Australia has an opportunity to invest in these connections. The Australia for ASEAN Futures Initiative (Aus4ASEAN (Opens in new window)), including its scholarships and fellowships, together with alumni networks from the New Colombo Plan (Opens in new window), can help build enduring links between young innovators, researchers and entrepreneurs. These networks are well placed to develop locally relevant digital solutions while strengthening the long-term ties that underpin regional cooperation.

Hilman Palaon travelled as a guest of the Foreign Policy Community of Indonesia (FPCI) and the Australian Mission to ASEAN to be a panellist in the ASEAN-Australia Track 1.5 Dialogue, held at the ASEAN Secretariat in Jakarta.