Indonesia striving to optimize productivity of digital economy

Indonesia striving to optimize productivity of digital economy

Minister of Communications and Informatics Johnny G. Plate during a working meeting with Committee I of the Regional Representatives Council, September 21, 2021. (ANTARA/Kominfo/rst)

Through productivity optimization, driven by digital transformation, the national GDP is estimated to increase by one percent in 2024
Jakarta (ANTARA) - The Indonesian Government is striving to optimize productivity of the digital economy which is predicted to grow around 23 percent or equals to US$124 billion by 2025, Communications and Informatics Minister Johnny G. Plate stated.

"Through productivity optimization, driven by digital transformation, the national GDP is estimated to increase by one percent in 2024. Meanwhile, the value of Indonesia's digital economy in 2025 is also forecast to grow to 23 percent, which is around US$124 billion, or equivalent to Rp1,781 trillion," Minister Plate remarked during a working meeting with Committee I of the Regional Representatives Council, Wednesday.

Indonesia's digital economy was valued at US$44 billion last year, contributing some four percent to the gross domestic product (GDP). Indonesia's digital economy accounts for nearly 42 percent of the total value of the digital economy in the Southeast Asian region, Plate pointed out.

This huge contribution was driven by the strength of Indonesia's digital demographics reaching 202.6 million people, or 73.7 percent of the total population in January 2021.

"We believe that this will be one of the driving factors for the positive movement of the national economic growth in future," he stated.

With an annual growth rate reaching 23 percent for the 2020-2025 period, the valuation of Indonesia's digital economy is forecast to continue to increase to reach Rp4,531 trillion in 2030.

"This annual growth rate makes Indonesia a country with the largest digital economic valuation in Southeast Asia. Moreover, the portrait of digital opportunities is apparent from the growth figures in the communications and informatics sector that have continued to excel and become the backbone of economic recovery," Plate remarked.

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The agenda for accelerating digital transformation is important to restore the community's activities, which have moved from a physical to digital space.

Citing the ASEAN Development Bank 2021 report, the increased adoption of digital technology in the Asia-Pacific region from an economic perspective could generate an economic dividend of US$8.6 trillion by 2025.

In addition, the adoption of digital technology can create 65 million new jobs every year worldwide.

"This transformation demonstrates the huge potential of the digital economy as the main driver of economic growth, including in Indonesia," Minister Plate noted.

His ministry has encouraged five steps to accelerate national digital transformation, with the first being to expedite access expansion, increase digital infrastructure, and offer internet services.

The second step involves preparing a digital transformation roadmap for each strategic sector, while the third measure is to accelerate the integration of the National Data Center. The fourth step entails preparing digital talent, while the last measure involves regulate funding schemes and financing for digital transformation.

The five steps are applied to the four strategic sectors available in the 2021-2024 Indonesia Digital Roadmap, specifically digital infrastructure, digital government, digital economy, and digital society.

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