Indonesian Deputy for Coordination of International Economic Cooperation of the Coordinating Ministry for Economic Affairs Edi Prio Pambudi revealed that some member countries admitted their lack of readiness to implement the DEFA in 2025 during the meeting of the ASEAN Economic Community (AEC) Council in Laos last year.
Hence, he stated that Indonesia will help by offering a capacity building program to ensure that all ASEAN countries can understand and implement DEFA according to their respective capabilities.
“We will provide capacity building program for them to at least be able to figure out what is not ready yet,” Edi stated here on Wednesday.
Indonesia is encouraging all ASEAN members to promptly implement DEFA this year, given the widespread interest among several countries to collaborate in the digital economy sector.
The deputy assessed that aligning principles among ASEAN member states is essential for the successful implementation of DEFA.
Edi explained that if each country acts individually, it, in fact, risks creating inequality in the integration of the digital economy in the region later.
However, he declined to specify which countries were not ready, although he emphasized that countries with primary commodity-based economies tend to face greater challenges in digitalization.
"Yes, we know that there are countries that are indeed slower in terms of growth because they are more based on primary commodities, right? Well, when they enter digitalization, they definitely have to adjust," he explained.
He reassured these countries that the negotiation process among ASEAN members can always be resolved amicably.
"However, we always advise them not to worry because the good thing about ASEAN is that every negotiation can be completed in a brotherly spirit. It is not difficult like any other negotiation,” Edi noted.
At the AEC Council Meeting last October, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized the importance of accelerating the completion of DEFA negotiations.
DEFA covers various aspects of digitalization, such as digital talent, digital identity, cybersecurity, retraining and reskilling, infrastructure, as well as interoperability in the ASEAN.
With the implementation of DEFA, Indonesia's digital economy is projected to grow fourfold by 2030, reaching US$210 billion to US$360 billion.
Digital payments are also expected to grow 2.5-fold in 2030, reaching US$760 billion.
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Translator: Bayu Saputra, Yashinta Difa
Editor: Arie Novarina
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