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DBS points to digital economy, EVs, infrastructure as 2021 growth drivers for Indonesia
A DBS conference on economic insights has highlighted that the economic drivers for Indonesia in 2021 will be these three sectors, propelled by pandemic-induced shifts over the past year.
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A screenshot shows the promotional poster for DBS Indonesia's "Reimagining the Future of Indonesia", a virtual discussion held on March 22, 2021 as part of its Asian Insights Conference series. (PHOTO CREDIT: www.dbs.com) (JP/Wendra Ajistyatama)
T
he digital economy, electric vehicles (EVs) and infrastructure are this year’s prominent sectors according to an economist at Singapore’s DBS Bank, who has made the projection based on accelerated digitalization and the government’s investment focus during the pandemic.
DBS Economics and Macro Strategy senior vice president Radhika Rao said the recent shift in consumers to e-commerce platforms, the government’s partnership with EV manufacturers and the recently established Indonesian Investment Authority (INA) would be key economic drivers for 2021.
“Everything has now moved online, so that the digital economy has really taken off,” Rao said at the DBS Indonesia Asian Insights Conference 2021 titled "Reimagining the Future of Indonesia", held virtually on Monday.
“And because of that, if you have seen product lines like consumer electronics, regarding semiconductors, particularly inputs that go into computers, PCs, mobile phones, all of that, those industries have done very well. So there [were] a lot of investments that went into that space,” she said.
According to the e-Conomy SEA 2020 Report by Google, Temasek and Bain & Company, with the COVID-19 pandemic quickening the pace of digitalization in the country, investments in the internet sector doubled to US$2.8 billion in the first half of 2020 from $1.4 billion in the first half of 2019.
The report also found that 37 percent of all digital consumers in the country were new, with an overwhelming majority planning to continue at least one digital service post-pandemic.
Read also: Indonesia to see double-digit growth in digital transactions this year
