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Bridging disparities to bolster digital transformation in ASEAN
The cause for concern in this situation is how developed areas will continue to progress rapidly, while rural areas remain stagnant in their status quo, exacerbating the divide between the haves and have-nots.
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Students of SD 008 elementary school in Muyub Ulu village in West Kutai regency in East Kalimantan surf the internet thanks to free access to Wi-Fi on Aug. 15, 2023. (Antara/Livia Kristianti)
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SEAN has been actively promoting its ongoing efforts as the region advances its gleaming vision of a digitally integrated regional economy. Noteworthy progress has been made, and ongoing initiatives seem to be up to par.
However, the faster digital transformation occurs, the wider the digital divide becomes. Disparities in digital adoption have emerged among ASEAN member states, marked by some countries having sufficient digital capabilities, access and infrastructure; while others face constraints in accessing these digital technologies and are not as lucky.
To ensure a seamless transition to digitalization, ASEAN must pay greater attention to its human capital. This means focusing on the quality rather than looking only at the quantity of the ASEAN population.
The region has a population of more than 670 million people, with a significant portion being online internet users, at almost 70 percent in 2022. Although the number of online users in ASEAN, quantitatively speaking, is substantial, the resulting productivity gains have not been in proportion.
Many people still primarily use the internet for one-way consumption of social media, gaming and communication purposes. They have yet to grasp how technology can play a significant role in productivity gains and creation.
Three fundamental digital disparities in ASEAN potentially hinder the region’s digital transformation.
First, digital access. Access to digital technologies in ASEAN exhibits significant disparities, marked by the varying degrees of digital take-up within the region. Some countries have experienced rapid growth due to digitalization, while others still face difficulties in accessing these digital technologies.
