The Urgency of Digital Transformation: Challenges and Opportunities in the High-Tech Era

Jakarta, INTI - At the opening of the Indonesia Internet Expo and Summit (IIXS), part of the Indonesia Technology and Innovation (INTI) 2024 event, the Deputy Minister of Communication and Informatics, Nezar Patria, emphasized the importance of digital transformation as a key pillar in facing global developments. He highlighted that the world is currently at the peak of a technological revolution, with the adoption of digital technology accelerating and spreading across all industries.

In his presentation, Nezar Patria outlined five major trends that are currently dominating global digital transformation: Cloud and Edge Computing, Advanced Connectivity, Generative AI, Applied AI, and Next-Gen Software Development. According to the McKinsey 2024 report, the adoption of these technologies has reached significant levels, with Cloud and Edge Computing leading at 75% adoption, followed by Advanced Connectivity and Generative AI at 74%. These technologies not only support more efficient business operations but also drive extraordinary productivity growth, including in the Micro, Small, and Medium Enterprises (MSMEs) sector.

Nezar Patria pointed out that the economic potential of digital transformation cannot be ignored. Projections indicate that the global digital transformation market is expected to reach USD 964.79 billion by 2030, up from USD 397.96 billion in 2023, with a compound annual growth rate (CAGR) of 13.5%. This growth is accelerated by continuous innovation, which is the main driver for market expansion.

However, significant challenges accompany this digital transformation. Nezar identified several digital divides that need to be addressed promptly, such as the disparity in internet access between urban and rural areas, uneven infrastructure quality, and significant differences in digital skills across age groups and genders. Data from the World Bank 2023 indicates that these challenges could hinder the pace of digital transformation if not addressed swiftly.

In conclusion, Nezar Patria stated that to fully reap the benefits of digital transformation, Indonesia needs to create an inclusive and sustainable ecosystem, with full support from all stakeholders—government, private sector, and society. This is essential for digital transformation to not only serve as a catalyst for economic growth but also as a tool to address existing social and economic disparities.