In 2022, the value of the digital economy in ASEAN reached US$194 billion, with Indonesia holding 40 percent of itJakarta (ANTARA) - Indonesia cornered as much as 40 percent of the Association of Southeast Asian Nations' (ASEAN's) digital economy market in 2022, according to the Coordinating Ministry for Economic Affairs.
"In 2022, the value of the digital economy in ASEAN reached US$194 billion, with Indonesia holding 40 percent of it," Rizal Edwin, the ministry's expert staff for digital transformation, creativity, and human resources, informed at the 2023 Indonesia Retail Summit in Jakarta on Monday.
With a population of 679 million, which accounts for 8 percent of the total global population, the ASEAN wields enormous market potential in the world of business, including in the retail sector, he highlighted.
Furthermore, he said that the emergence of e-commerce, or online shopping platforms, as part of information and communication technology development has provided consumers with easier access to products and services and created new business opportunities, thereby transforming the face of the retail sector in ASEAN.
"The ever-intensifying internet penetration and use of smartphones have led the region to see a highly rapid development in online trading activities, which, in turn, has brought about new opportunities to business actors," he noted.
The stable rate of economic growth enjoyed by ASEAN countries has affected the retail sector in the region, he added.
"The economic growth rate of some ASEAN countries has been recorded at figures that are higher compared to the world's average of 3.1 percent. Malaysia, Vietnam, the Philippines, Cambodia, Singapore, and Indonesia have recorded growth rates in a range between 3.8 to 8.7 percent," he pointed out.
He then affirmed that Indonesia, the 2023 ASEAN chair, has made significant contributions to driving the region to establish highly beneficial trade cooperation with partner countries, with its efforts including fighting for the finalization of the Comprehensive Economic Partnership Agreement (CEPA) with the European Union.
The expert staff also expressed optimism that Indonesia's digital economy, whose value is projected to reach US$150 billion by 2025, would serve as a crucial instrument for recovering the national economy.
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Translator: Ade irma, Tegar Nurfitra
Editor: Sri Haryati
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