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Fast, affordable internet: A way out of the middle income trap

Fast, inexpensive and unlimited internet services are crucial elements for achieving effective digital transformation.

Arwin Rasyid (The Jakarta Post)
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Jakarta
Tue, June 4, 2024 Published on Jun. 3, 2024 Published on 2024-06-03T13:49:13+07:00

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Fast, affordable internet: A way out of the middle income trap COVID lessons: Students learn online during the COVID-19 pandemic on Oct. 18, 2021 atop Merona Hill in Hinas Kanan village, Hulu Sungai Tengah regency, South Kalimantan. The students traveled 5 kilometers to reach the hill to access the internet, which was not available in their village. (Antara/Bayu Pratama S.)

F

or nearly three decades, Indonesia has wrestled with the middle income trap (MIT). From 1993 to 2022, despite rising per capita income, the archipelagic nation found it challenging to achieve high and sustainable economic growth.

The 2025-2045 Long-term National Development Plan (RPJN) outlines two scenarios for Indonesia to escape the MIT over the next 20 years. The first scenario, described as transformative, anticipates an average economic growth rate of 6 percent, with the goal of exiting the MIT by 2041. The second, more optimistic scenario envisions an average economic growth rate of 7 percent, targeting an exit from the MIT by 2038.

At the Qatar Economic Forum in Doha two weeks ago, president-elect Prabowo Subianto expressed his confidence that Indonesia would achieve 8 percent economic growth in the coming years, aligning with the optimistic scenario laid out in the 2025-2045 RPJN draft.

During a presentation to the University of Indonesia Alumni Association, Chatib Basri, a former finance minister, emphasized that both scenarios required a successful economic transformation. He further highlighted that a key determinant of this success was digital transformation.

The foundation of digital transformation lies in the readiness to provide high-speed, unlimited internet access at minimal or even no cost at all, ensuring accessibility for people with limited purchasing power. Fast, inexpensive and unlimited internet services are crucial elements for achieving effective digital transformation.

Access to the internet contributes significantly to fostering economic growth and community welfare. It enables the creation of online businesses and employment opportunities in rural areas, while also accommodating remote work.

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Dependable internet access also improves online learning, facilitates Zoom meetings, supports telehealth and e-commerce and streamlines bureaucratic processes, ultimately enhancing the quality of life and economic activity, especially for those with limited financial means.

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