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What presidential candidates are missing in their digital economy vision
While the 2024 candidates seem to be on the same page regarding the need to tap into Indonesia's digital potential, their vision statements also tend to fall short in terms of elements critical to implementation, such as cyber resilience, digital inclusion and digital market governance.
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Students use mobile devices on Aug. 15, 2023 to access the free internet service at SDN 008 elementary school in Muyub Ulu village, West Kutai regency, East Kalimantan. (Antara/Livia Kristianti)
Amid all the chatter about Indonesia's digital economy potential, the critical linchpin for enhancing competitiveness is fostering a robust digital ecosystem.
Forecasts indicate that Indonesia's digital economy could reach Rp 4.5 quadrillion (US$290 billion) by 2030, and then increase fivefold to Rp 22.5 quadrillion by 2045. Yet, a reality check reveals a notable absence of alignment with this digital imperative in the 2024 presidential candidates' vision statements.
It's like envisioning a grand symphony, only to find that key instruments are missing.
The country’s digital landscape, as outlined in the Golden Indonesia Vision 2045 and the Digital Indonesia Vision, underscores a strategic focus on enhancing the digital infrastructure.
With a 90.2 percent growth in gross merchandise value (GMV) between 2019 and 2022, current projections anticipate a $136 billion surge in GMV by 2025. E-commerce is pivotal and is expected to maintain a 63.9 percent share.
Despite setbacks due to the pandemic, the digital economy’s contribution to gross domestic product (GDP) is set to rise from 6.12 percent in 2021 to 20.7 percent and reach Rp 22.513 billion by 2045, according to the National Development Planning Agency’s 2022 forecast.
The country has remarkable digital economy potential in Southeast Asia. Its number of internet users has risen significantly from 4.76 percent in 2006 to 62.10 percent in 2021, positioning Indonesia as a key ASEAN market. The country also stands out in terms of secure internet servers, and ranked second in ASEAN at the end of 2022.
