Everyone must synergize to develop a digital ecosystem: Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment

One of the topics discussed at the G20 Summit in Bali and the main concern of countries with the strongest economies in the world is digital transformation to support economic resilience and resilience. Asian economies are growing faster than the global economy. Indonesia’s economy has grown by more than 5%, and it is hoped that it will continue to take advantage of the momentum of economic recovery after the past pandemic.

President Joko Widodo has expressed his optimism that Indonesia will become the fourth largest economic power in the world in 2045. In fact, the growth of Indonesia’s digital economy is very rapid when compared to other countries in Southeast Asia. The value of Indonesia’s digital economy will reach USD 70 billion in 2021 and is expected to double by 2025.

2023 is a momentum and an important milestone for the government to seriously accelerate the development of the digital economy in accordance with the directions given by the President. The planning that has been developed over the course of the year must be continuously guarded in order to achieve a target that we have been sure of together.

Based on data from the Master Plan for the Development of Indonesia’s Digital Industry 2023-2045, the value of the digital economy is targeted to reach IDR 22,513 trillion in 2045, or 15 times the achievement in 2021 of IDR 1,490 trillion. I believe that the current transition of the Indonesian economy towards digital is a necessity.

However, even though the prospects for the digital economy in Indonesia look bright, there are still obstacles to overcome. One of the biggest challenges is the lack of internet access in many parts of Indonesia. We all know that the current geographical conditions of the islands, as well as the uneven distribution of infrastructure, have made it difficult for this country to achieve this goal.

We are currently unable to match the global average internet speed, according to Bappenas data. In 2020, the average internet speed in the country is 23.1 mbps. This speed is less than half of the global average internet speed of 55.7 mbps. The ideals that are on our shoulders today need to be accompanied by real efforts.

The adoption of digital technology that occurred during the past Covid-19 pandemic also needs to be balanced with digital literacy by business actors, especially in the small and medium business sector (MSMEs). Digital literacy among MSME players needs to be increased if Indonesia wants to become a digital economic power in Southeast Asia and the world. A qualified ecosystem, in addition to investment, is required for the growth of the digital economy. I believe that in the future, digital literacy will be as important as basic skills like reading, writing, and arithmetic.

Returning to President Joko Widodo’s earlier statement, the President stated that Indonesia’s digital economic potential can be fully utilized and not “taken” by other countries. For this reason, all stakeholders must work together to develop a digital ecosystem in the country.

Currently, the Government continues to encourage telecommunication players to actively build network infrastructure to remote areas. Through the Palapa Ring project and the Satria multifunctional satellite, the government is also involved in providing a backbone network. On the downstream side, the government is collaborating with a number of partners to provide digital technology skill training. 

We also conduct literacy training and business coaching so that small and medium businesses are literate in digital marketing through the Proud Made in Indonesia (Bangga Buatan Indonesia) program. And the most important thing, the government wants policies that will improve policies related to coordination issues between the Center and the Regions, which are oftenly not aligned.

In the midst of the various opportunities and challenges above, new acceleration and enthusiasm is needed to welcome this year full of uncertainties. Collaboration is a single word that must be carried out between the government, digital industry players, and the community to achieve common goals in 2045 for the prosperity of all of Indonesia’s bloodshed.

Download the EV-DCI 2023 here.