ASIATODAY.ID, JAKARTA – Indonesia has recorded rapid progress in the digital economic and financial ecosystem.
This is reflected in several of Indonesia’s achievements at the global level, such as an increase of 11 places in the World Digital Competitiveness Ranking (from 56th in 2019 to 45th in 2023), 6th place for start-ups globally, having start-ups the most innovative startups or 1st place in ASEAN, and has 15 unicorns and 2 decacorns that are global.
President Joko Widodo emphasized that Indonesia’s digital economic opportunities in the future will grow 4-fold by 2030, reaching US$210 to US$360 billion. Digital payments will also grow 2.5 times in 2030 to reach US$760 billion.
“The number of our Micro, Small and Medium Enterprises (MSMEs) is also very large, 64 million. Of course, digital MSMEs will boost the growth of our digital economy and digital payments. So I say, digital transformation must be inclusive, it must be fair. Communities on the outskirts, lower economic strata, micro-economies, MSMEs, all must have the same access and opportunities. Must receive the same protection. “I ask the Financial Services Authority (OJK) and Bank Indonesia (BI) to increase public protection in the digital economy sector,” said President Joko Widodo when speaking at the Opening Ceremony of the Indonesian Digital Financial Economy Festival (FEKDI) and Indonesian Creative Work (KKI) 2024, Thursday, August 1, 2024.
On the same occasion, the Coordinating Minister for the Indonesian Economy, Airlangga Hartarto, also said that Indonesia is currently ranked 2nd in the country with the largest digital investment destination in ASEAN or US$21.97 billion.
“Indonesian e-commerce accounts for 40% of the market share in ASEAN, by 2023 we will reach US$77 billion. “And of course the demographic bonus which is very technologically capable is 53% (of the population),” said Airlangga.
According to Airlangga, this digital acceleration step is a focus for future innovation and investment in two ways.
First, downstream from semiconductors. Indonesia has been selected by the United States in the Indo Pacific Economic Framework (IPEF) to be the seven priority countries and will be placed in the ITSI Fund. Special fund for semiconductors.
Second, the artificial intelligence ecosystem, this is to increase R&D and also of course to be included in several districts which are innovation zones which also develop futuristic technology.
At the end of 2023, the Government has also completed the 2030 National Digital Economy Strategy policy so that the digital sector can contribute to Indonesia’s GDP gradually and will continue to increase to reach 20% in 2045. At the regional level, Indonesia has reached an agreement to develop the ASEAN Digital Economy Framework Agreement (DEFA) to advance digitalization and interoperability.
“DEFA is the only digital economic collaboration from all regions in the world. And this is also a model in ministerial meetings at the OECD. So we are also recognized at the global level. And with this program it is hoped that the ASEAN economy, which business as usual is US$1 trillion, will increase to US$2 trillion. “So, in 2030, Indonesia’s digital economy, which is estimated at US$360 billion, will increase to US$600 billion,” concluded Airlangga. (AT Network)
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