Jakarta (ANTARA) - Indonesia's demographic make-up, which is dominated by the millennial, Y, and Z generations, can support the development of the digital economy in the country, the acting head of the Finance Ministry’s Secretariat General said.

"This is because this generation is a generation that has been raised amid the development of digitalization in all fields. They are very easy to adapt to technology," Andin Hadiyanto informed at the opening of the “2022 Financial Profession Expo (PKE)” in Jakarta on Monday.

The momentum of the COVID-19 pandemic has accelerated changes in the Indonesian people's habits in terms of digital economy utilization, which can be seen from the surge in digitalization, especially due to online and retail applications, he noted.

Efforts to accelerate the digital transformation in the Indonesian economy have become one of the strategies to ensure the continuity of the productive economic sector to support a sustainable economy, especially in the midst of the limited physical access that has been experienced in the past two years, Hadiyanto said.

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The development of digital transformation in Indonesia has also continued to show positive and excellent performance, he added. The value of Indonesia's digital economy in 2021 was the highest in Southeast Asia at US$70 billion, and is estimated to reach US$146 billion by 2025.

"In addition, 40 percent of the share of the digital economy in Southeast Asia is also in Indonesia," he remarked.

He said the sector that supported the digital economy in Indonesia was e-commerce whose value reached US$53 billion in 2021 and is predicted to reach US$104 billion by 2025.

In addition, as of June 2022, 19.5 million micro, small, and medium enterprises (MSMEs) in Indonesia, equivalent to 30.4 percent of the total MSMEs, have joined e-commerce platforms.

Efforts to strengthen the digital economy and sustainable economic development are also among the pillars for realizing Indonesia's Vision 2045 of becoming a sovereign, equal, and prosperous nation, and one of the countries with the fifth-largest gross domestic product (GDP) in the world, Hadiyanto said.

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Translator: Agatha Olivia V, Resinta S
Editor: Azis Kurmala
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