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Indonesia should put digital training on foreign deals table

As Indonesia aims to become a regional digital giant, the government should also incorporate digital skills development in its foreign policy stance.

Gatra Priyandita, Benjamin Herscovitch and Dirk van der Kley (The Jakarta Post)
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Canberra
Fri, July 22, 2022

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Indonesia should put digital training on foreign deals table Southeast Asia internet economy (gross merchandise value, in billion US dollar). (e-Conomy SEA 2019/JP/Hengky Wijaya)

P

resident Joko “Jokowi” Widodo is championing a vision that Indonesia will become Asia’s third largest digital giant by 2030. With over 200 million Indonesians connected online and an internet economy expected to reach US$146 billion by 2025, it’s hard not to believe that Indonesia will reach this goal.

Yet, to remain competitive in a global economy where digital technology is becoming ever more ubiquitous, the government needs to direct both domestic and international efforts toward improving digital skills development. With major powers wooing Indonesia amid an increasingly competitive strategic environment, now is the right time to bargain for more digital training.

Indonesian officials and cybersecurity professionals are deeply aware that major skills shortages stand in the way of Indonesia having a competitive digital economy. Officials frequently quote World Bank data that the country needs 9 million additional information and communication technology (ICT) workers by 2030 to support the country’s digital economy.

Meeting this gargantuan task is not easy.

While the government has placed digital skills development as a key priority in the 2020-2024 National Digital Strategy, multiple obstacles inhibit progress, including insufficient resources and unequal internet connectivity infrastructure that limit internet usage outside Java.

Multiple stakeholders are working to help the government bridge the digital divide. Edutech start-up Ruangguru is working with the Communication and Information Ministry to set up a “digital literacy space program”, which offers free videos for building digital skills. Google is working with major start-ups like GoTo and universities to set up digital training centers. The Apple Developer Academy has also set up three campuses in the country.

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But among major companies, Huawei arguably stands out as one of the most dominant providers of digital training. In our recently released report with the Carnegie Endowment for International Peace, Localization and China’s Tech Success in Indonesia, we found that Huawei has positioned itself as a training provider of choice for many organizations.

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