"It is undeniable that we are entering a transitional era of digital economy for the next 10-15 years," Coordinating Minister for Economic Affairs Darmin Nasution stated.
Malang, E Java (ANTARA News) - Indonesia is currently entering a transitional period in terms of digital economy and is forecast to take 10 to 15 years to complete, according to a minister.

"It is undeniable that we are entering a transitional era of digital economy for the next 10-15 years," Coordinating Minister for Economic Affairs Darmin Nasution stated here, Thursday, while speaking on Digital Economy to Support Entrepreneurship at an event to celebrate the 54th anniversary of the University of Brawijaya, which was also attended by Communication and Information Minister Rudiantara, Public Housing and Public Works Minister Basuki Hadimuljono, and East Java Governor Soekarwo.

To optimize economic growth and equity, Indonesia needs to benefit from technological progress by implementing a regulation on digital economy.

Small- and medium-scale enterprises (SMEs) should be empowered to become a foundation of creative economy, which is capable of playing a significant role in global trade through e-commerce.

Hence, the government has envisioned that Indonesia would become the largest digital economy in Southeast Asia by 2020, according to the minister.

"The target is to create 1,000 digital start-ups, having a business value of US$10 billion, e-commerce growth of 50 percent per year, and transactions worth US$130 billion," he revealed.

The focus will be on start-ups and SME-based digital economic development.

Indonesias digital economic potential is huge, as cellular penetration is 126 percent; internet, 52 percent; young population, 30 percent; and the number of SMEs reaching 60 million.

"The contribution of SMEs to the gross domestic product is 57.6 percent. This is very strategic," he added.

Meanwhile, Indonesia has planned to cooperate with India to establish a digital economy and to support e-commerce.

"Indonesia is seeking opportunities to cooperate with India in the fields of digital economy and e-commerce. Digital economy and e-commerce in India is viewed as an area of immense potential," Investment Coordinating Board Head Thomas Trikasih Lembong had noted in New Delhi, India, last December.

Lembong said that India and Indonesia are experiencing a period of digital economic growth.

"There are digital companies growing in both countries. In Indonesia, we have heard of Tokopedia, Traveloka, and Gojek. Such digital companies are also growing in India," he remarked.

He claimed that several Indonesian e-commerce players use programming and coding services from India.

"Indonesia is experiencing a shortage of programmers in the wake of the regions booming digital economy. The same happens in India, but the deficit of programmers can be addressed," he noted.

He pointed out that this level of cooperation could be developed since India has decades of experience in developing information technology.

"I view this cooperation as very prospective," he added.(*)

Editor: Heru Purwanto
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