This literature study examines the development, challenges, and opportunities of implementing Indonesia’s Digital Population Identity (in Indonesian: Identitas Kependudukan Digital/IKD) and its potential contribution to strengthening the national demographic statistics system. Drawing on national and international publications, government reports, and empirical findings from regional case studies, the review highlights that IKD represents a significant step in modernizing population administration through real-time data updates, system integration, and improved accuracy of civil registration. However, implementation remains constrained by uneven digital infrastructure, low digital literacy, varying administrative capacity, and data security concerns. Comparative insights from Estonia, India, Singapore, and South Korea show that Indonesia faces challenges similar to global digital ID initiatives, particularly regarding interoperability, privacy protection, and governance. Despite these obstacles, the literature indicates substantial opportunities for IKD to enhance demographic statistics through improved accuracy of vital event recording, cross-agency data integration, and the development of big-data-driven demographic analysis. Strengthening infrastructure, capacity building, and inter-agency collaboration will be essential for maximizing the role of IKD in supporting a modern, efficient, and integrated demographic statistical system.