This momentum must be used to push the digital transformation processJakarta (ANTARA) - Digitalization is one of the ways to push the transformation to a new economy, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.
"Digitalization is a means to push for the transformation to a new economy with added value and better competitiveness," he noted in a written statement received here on Wednesday.
According to Minister Airlangga, digital technology has opened up the possibility of greater collaboration among economic stakeholders for expediting trade, creating jobs, and improving access to public services.
"This momentum must be used to push the digital transformation process," he said.
The value of the digital economy of the Association of Southeast Asian Nations (ASEAN) has crossed US$100 billion, he noted. It is predicted to grow threefold by 2025 to more than US$300 billion, the minister said.
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The largest contributor to the ASEAN digital economy has been e-commerce, followed by transportation and food delivery, online media, and travel, Hartarto said. Aside from those, healthtech and edutech have grown into promising sectors, he observed.
Indonesia's digital economy is valued at US$44 billion, the highest in ASEAN, he said. This figure is predicted to grow eightfold by 2030, he added
Most of the value of the digital economy has been contributed by e-commerce transactions, which are estimated to increase to US$32 billion in 2025, reflecting a growth of 54 percent, the minister said.
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"The development of the digital economy in Indonesia can also be seen from the total investment in digital platforms, which is around 38.7 percent, the largest number in Southeast Asia. Strategic sectors that are the new strengths of the digital economy include agritech, fintech, edutech, and health tech," he added.
The acceleration of agritech can be seen in the development of TaniHub, one of the leading agritech start-ups in Indonesia, Hartarto noted. The development of fintech can also be seen from the distribution of peer-to-peer loans, which were recorded at US$7 billion as of March 2020, he said.
Meanwhile, the increase in the edutech sector can be seen from the growth of users, which reached 200 percent in 2020, he said. Lastly, the development of the health tech sector is reflected in the ever-increasing number of users of Halodoc, one of the leading health technology providers in Indonesia, he added.
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Translator: Kuntum Khaira R, Mecca Yumna
Editor: Fardah Assegaf
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