The figure is equivalent to 16 percent of Indonesia’s total GDP.
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has said that a quality young generation will have an important role as the driving force of national economic growth in the Society 5.0 era.

“The development of digital skills is projected to give contribution of Rp4,434 trillion to Indonesia's gross domestic product (GDP) in 2030. The figure is equivalent to 16 percent of Indonesia’s total GDP," he said in an official statement released here on Saturday.

A study conducted by Google, Temasek, and Bain & Company in 2021 pegged Indonesia’s digital gross merchandise value (GMV) at US$70 billion, or 40 percent of the total digital GMV of Southeast Asian countries.

Hence, the huge potential must be utilized for mutual prosperity as the value is estimated to continue to grow and reach US$146 billion by 2025.

"However, the development of the economic potential requires coordination and synergy with all parties, including universities, by encouraging the digitalization of learning programs," the coordinating minister said.

The development of digital talent is also expected to promote the digitization of micro, small, and medium enterprises (MSMEs) in Indonesia.

MSMEs, along with entrepreneurs, have been among the pillars of national economic growth in the midst of the COVID-19 pandemic.

However, currently, the ratio of entrepreneurs in Indonesia is only 3.47 percent of the total population.

Related news: Minister Hartarto lauds increase in MSMEs in South Sulawesi

The number is below the entrepreneurship ratio in developed countries, where it is at least 5 percent.

MSMEs also often experience challenges, including limited innovation, technology, financing, human resources, branding, and marketing access, as well as difficulties in standardization and certification.

The challenges faced by MSMEs are increasing, especially amid the pandemic, since they now need to adapt to technological developments to digitize their business and provide wide, fast, effective, and efficient services.

"The government has continued to support MSMEs as a very important digital economic ecosystem in Indonesia by issuing policy instruments that can optimize benefits for MSMEs," Hartarto added.

Related news: Ministry to create SME e-catalogue for 2022 MotoGP visitors

Translator: Sanya Susanti, Uyu Liman
Editor: Rahmad Nasution
Copyright © ANTARA 2022