ASEAN digital economic value to double by 2030 with DEFA: Minister

ASEAN digital economic value to double by 2030 with DEFA: Minister

File - A customer makes a digital payment using QRIS in Jakarta on July 28, 2023. (ANTARA FOTO/Galih Pradipta/hp)

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has said that with the implementation of the Digital Economic Framework Agreement (DEFA), the value of ASEAN's digital economy is projected to double to US$2 trillion by 2030.

Before DEFA was in place, ASEAN's digital economy was projected to grow to US$1 trillion in 2030, he said during a symposium on digital economy and sustainability on Thursday.

DEFA is a cooperation framework that provides a comprehensive roadmap to empower businesses and other stakeholders in the ASEAN region through accelerating trade growth, increasing interoperability, creating a safe digital environment, and increasing the participation of micro, small, and medium enterprises (MSMEs).

Hartarto explained that Indonesia currently accounts for 40 percent of the ASEAN digital economy value. Therefore, with DEFA in place, Indonesia's digital economy is projected to reach US$400 billion by 2030.

Regarding the gross merchandise value (GMV) in 2022, ASEAN recorded a GMV of US$194 billion, reflecting a 90 percent increase compared to 2019.

"In Indonesia, the GMV is recorded at US$70 billion, and in 2025, it is predicted to grow to around US$150 billion. Southeast Asia hosts over 4,500 startups, with Indonesia alone boasting more than two thousand.," he remarked.

He said that with Indonesia's chairmanship in the ASEAN in 2023, his ministry continues to encourage the three main aspects of recovery-rebuilding, digital economy, and sustainability.

On the same occasion, President of the Economic Research Institute for ASEAN and East Asia (ERIA) Tetsuya Watanabe underscored the need for development of the regional digital economy to be accompanied by the aspects of sustainability.

Therefore, collaboration across sectors, from government to the private sector, is considered essential to facilitate ongoing digital economic transformation in the ASEAN and East Asian regions.

Watanabe also highlighted the need to ensure that the relevant sectors, such as transportation and finance, join with stakeholders and the private sector in realizing digital transformation, project management, and the involvement of the public and the private sector.

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