While the capital city Jakarta and West Java remain at the top positions, East Ventures’ latest digital competitive index shows that other provinces are catching up fast
Bengkulu and West Papua are two provinces with improvements in digital competitiveness over the past year that slingshot past even the main provinces of DKI Jakarta and West Java.
This might be surprising, but our latest report has found that Bengkulu and West Papua made spectacular progress in the past year due to investments in two key areas: digital infrastructure and human resources.
The 2022 East Ventures – Digital Competitiveness Index (EV-DCI) maps how far each of Indonesia’s 34 provinces has walked in their journey to being a digitally competitive province.
“Indonesia is blessed with a huge population at its prime, but there is a deep chasm between regions that if left unchecked, will cause us to fall short of arriving at Indonesia’s digital golden era,” said David Fernando Audy, Operating Partner at East Ventures. “There needs to be a deeper understanding of where each region stands in the journey, so that governments can devise the right strategy for each region.”
Below are the 10 most improved provinces in 2022, measured by the highest digital competitiveness index (DCI) increase:
Ten most improved provinces in 2022, measured by the highest digital competitiveness index (DCI) increase
This year, Bengkulu is the province with the highest increase in DCI. On top of being the most improved, Bengkulu jumped seven places from 19th to 12th place.
Jobs related to ICT in Bengkulu have increased. ICT Usage has also improved because the Bengkulu provincial government has developed ICT infrastructure that has accelerated the expansion of internet network connectivity in villages.
The MSMEs of Bengkulu also play a big part in the province’s achievement. With cooperation between government and private enterprises to hold digital training initiatives, Bengkulu’s MSMEs have shown strong growth prospects that boost their overall DCI score.
2. West Papua
West Papua is the second most improved province based on DCI score, climbing eleven places from 30th to 19th position. Digital infrastructure improvement is the key for West Papua’s remarkable performance.
West Papua has significantly developed their digital infrastructure, focusing on the East Palapa Ring backbone network, 4G BTS towers, and internet connectivity that reaches remote locations.
A stable connection is the launching pad for West Papua to become more digitally competitive. The Kominfo has a digital literacy program for MSMEs, and digitalization is also endorsed in schools
3. West Sumatera
This year, West Sumatra ranks as the third most improved province. Increased ICT Usage and job opportunities have pushed the province up to ninth place, up three levels from 2021.
Unemployment has declined by 10,660 people, which shows that the local economy is recovering nicely. The construction of several key infrastructures has increased the GRDP for the sub-sector of warehousing, transportation support, post, and courier, while the development of digital infrastructure in various blank spots in West Sumatra has promoted greater ICT usage in schools, at work, and home.
4. West Sulawesi
West Sulawesi is the province with the fourth-highest DCI index increase. Despite staying at 33rd place, West Sulawesi’s big improvement is a testament to the overall growth of Indonesia’s provinces in digital competitiveness.
The students of West Sulawesi have grown in numbers and in digital capabilities, and its overall population has grown more digitally literate. More businesses in different sectors in West Sulawesi adopted digital tools and technology.
5. East Kalimantan
East Kalimantan is the province with the fifth-highest DCI index increase. The province climbed from 10th position to 7th position, mainly because the creation of new startups has opened up jobs and demand for digital talents.
6. Southeast Sulawesi
Southeast Sulawesi sits at number six for the highest DCI index increase. The province has one of the highest participation rates for higher education, which indicates readiness for the 4.0 industry era in the following years.
Lampung’s digital competitiveness index increased by 4.16 and has risen from 26th place to 20th in 2022. Lampung’s population possesses high digital capabilities and there have been more job opportunities for them. Lastly, optimized logistical connectivity has contributed to the local economy.
8. North Sumatera
The province of North Sumatera’s DCI score improved by 4 points, but had no change in rank. The people of North Sumatera improved greatly in digital literacy, alongside access to tourism and infrastructure such as the Sumatera toll road.
9. North Sulawesi
North Sulawesi has improved by 3.91 points in the DCI index. This achievement results from more students with digital capabilities, workers in digitalization-related sectors, and GRDP contribution from the information and communication sector.
10. South Kalimantan
South Kalimantan occupies 10th place for the highest DCI index increase with 3.86 points. The province saw an increase in ICT usage, ICT expenditure, and digital literacy,which are the tools and pre-requisite for further digital transformation.
Download the full EV-DCI 2022 report here.