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RI should digitalize in pandemic's wake: McKinsey

Mardika Parama (The Jakarta Post)
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Sat, October 24, 2020

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I

ndonesia’s industry players and the government should ramp up digitization to boost productivity and adapt to the post-pandemic world, the Indonesian branch of management consulting firm McKinsey & Company has stated.

According to McKinsey research, Indonesia has the potential to increase its economic productivity through digitization by US$121 billion by 2025. The manufacturing sector would be the biggest beneficiary from digitization with a $34 billion jump, followed by retail with $25 billion and the transportation sector with $16 billion, the research shows.

“What’s next for Indonesia? Besides thinking about economic recovery and improving resiliency, we believe that the new normal era brought new potentials for the future,” McKinsey Indonesia senior partner Khoon Tee Tan told reporters during an online press conference on Wednesday.

McKinsey also believed that the pandemic had supercharged digital disruption toward production facilities and consumer behavior.

“From the technology and innovation perspective, consumers are rapidly moving into online platforms while businesses are also using online applications for work such as Zoom,” Khoon said.

The pandemic has accelerated the adoption of digital services among consumers. A survey by Mobile Marketing Association earlier this year showed that 70 percent of customers surveyed had tried out a new digital category during the pandemic.

Meanwhile, Redseer, another management consulting company, found that the number of Indonesian online shoppers had increased to 85 million people during the pandemic, from 75 million in the pre-COVID-19 era.

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