Indonesia's Digital Economy Predicted to Reach USD 130 Billion by 2025, Government Accelerates Digital Transformation Efforts

INTI,- Digital economy has emerged as one of the buffers for national economic stability amidst various global challenges. According to the Google Temasek, Bain & Company study, Indonesia's digital economy is valued at USD 77 billion in 2022, growing by 22% YoY and predicted to almost double to USD 130 billion by 2025.

Considering the potential of the digital economy, Indonesia's ASEAN 2023 Chairmanship has also raised digital transformation as one of the deliverables. In line with this, the government continues to push for the development of the digital economy through policy innovation and synergy strengthening.

"This is very important because we use the digital economy or digital platform as a buffer and accelerator of economic growth, not only in Indonesia but also in ASEAN," said Coordinating Minister for Economic Affairs Airlangga Hartarto during the opening ceremony of the Digital Economy and Finance Festival Indonesia (FEKDI) 2023 on Monday (8/05).

Strengthening digital infrastructure is one of the concrete steps taken by the government by expanding the 4G network, implementing 5G technology, utilizing Low Earth Orbit Satellites, and implementing various initiatives and programs that can support the inclusivity of communities in utilizing digital technology, including improving access to financial services or financial inclusion.

Along with the upcoming demographic bonus, the government has also sought to overcome the challenge of the digital talent and literacy gap through various programs such as the Prakerja Card Program, the National Digital Literacy Movement, Digital Talent Scholarship (DTS), Digital Leadership Academy (DLA), and Sea Labs Academy.

"What we need to remember is that the next 10 to 13 years are a very important momentum for Indonesia because the demographic bonus momentum will only last until 2038," emphasized Coordinating Minister Airlangga.

Furthermore, President Joko Widodo, who attended virtually, also gave several directions regarding efforts to accelerate the digital economy, one of which can be done by continuing to develop trust and innovation, such as regarding the provision of digital payment systems and community security protection.

"All innovations must be done carefully, paying attention and having risk anticipation, reliable security systems, and good consumer protection systems. Risk mitigation must be calculated on how regulations and supervision, monitoring and implications for exchange rates, and the sustainability of international adoption," said President Joko Widodo.

In line with President Joko Widodo's directions, the launch of innovative payment system products such as the domestic credit card called "Kartu Kredit Indonesia" and the cross-border QRIS between Indonesia and Malaysia was also announced as a tangible commitment to accelerate the digital economy and finance.

Those in attendance at the event included the Governor of Bank Indonesia, Coordinating Minister for Maritime Affairs and Investment, Minister of Home Affairs, Minister of Finance, Minister of Public Works and Public Housing, Minister of Tourism and Creative Economy, Minister of National Development Planning, and the Chairman of the Financial Services Authority Board of Commissioners. ***. Hans