Digital technology boosts Indonesia's economic growth by 1%: CSIS

Digital technology boosts Indonesia's economic growth by 1%: CSIS

Head of economy, Centre of Strategic and International Studies (CSIS) Indonesia, Yose Rizal Damuri, speaks at an online discussion here on Thursday (August 12, 2021). (ANTARA/Agathat Olivia/FR)

Jakarta (ANTARA) - Increased adoption of digital technology applications in Indonesia has boosted the national economic growth by one percent, Centre of Strategic and International Studies (CSIS) Indonesia's head of economy Yose Rizal Damuri has said.

"So, for the next 10-20 years, we really need a bigger digital technology application," Damuri remarked at an online discussion here on Thursday.

In addition, a CSIS study has indicated that districts and cities with the highest Internet penetration in Indonesia, 50 percent for instance, have recorded a higher economic growth of 0.4 percent compared to regions without Internet penetration, he pointed out.

"So, there is a significant correlation between the Internet and economic growth," Damuri said.

To this end, an increase in digital technology application access is required in the future to boost the economy, he added.

Internet usage has skyrocketed in Indonesia ever since COVID-19 struck, he said. This has been confirmed by a report by Statistics Indonesia (BPS) that has indicated a 9-percent increase in Internet usage in Indonesia within a year of the pandemic, he pointed out.

However, an increase in digital technology application cannot happen without strong and adequate digital infrastructure, Damuri emphasized.

Without quality infrastructure, Indonesia will experience numerous problems in developing digital technology and its applications, whether in economy, governance, or other social sectors, he explained.

According to the Communication and Informatics Ministry, Indonesia's post sector's revenue climbed 30 percent year-on-year in the first semester of 2019 due to the utilization of digital technology.

"I think we all agree that digital transformation has accelerated the global postal supply chain and boosted customer satisfaction, experience, and trust towards global postal services," post and informatics director general at the Communication and Informatics Ministry, Ismail, noted in a press statement released here on Thursday.

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