Digitalizing industry in Southeast Asia requires tailored approaches that match firms’ varying readiness and capabilities. In Indonesia, digital adoption is uneven, with most firms using basic digital tools and only a few integrating advanced technologies. Effective support should be differentiated: early-stage firms benefit from skills training and affordable solutions, intermediate firms need shared facilities and co-financing to reduce investment risk, while advanced firms require R&D partnerships. Coordination across ministries and alignment of standards and incentives are crucial to avoid fragmented policies and improve access to finance. Broad-based gains depend on building capabilities and inclusive digital transformation, reflecting lessons from successful programs in China, Japan, Korea, and Thailand.