The Indonesian government is company a comprehensive program to revive the tourism sector in the country, which has been hardest hit by the Covid-19 epidemic, leading to the loss of 409,000 jobs and a drop in state revenue.
Currently, Internet penetration in Indonesia for the period 2021-2022 has reached 77.2% and based on data reported in 2020, mobile device users have reached 370.1 million, or more than 100 million the total population of the country.
“The projected value of the Indonesian digital economy in 2025 is worth USD 146 billion or the equivalent of Rp. 2,103 trillion. In 2030, it will reach USD 330 billion or the equivalent of Rp. 4,752 trillion,” according to Mira Tayyiba, Secretary General of the Ministry of Communications and Informatics.
She added that by 2030, the value of the digital economy in Southeast Asia is expected to increase by a trillion dollars. These data are bolstered by Indonesia’s Internet expansion potential and have opened up opportunities for the digital economy in the country.
Sec-Gen Tayyiba cited some of the government initiatives such as: building 4G network in 12,548 villages (out of 83,218 villages and sub-districts that were not reached by 4G network); Development of a digital platform for the Tourism Network Hub; Tourism Village Assistance through English training, use of online shops and training for Digital Entrepreneurship Academy.
In 2020, on the other hand, Indonesia received a total of 4 million tourists, which ranks it 44th in the world in terms of absolute numbers. Tourism alone generated about US$3.53 billion for the country. This represents 0.33% of its gross domestic product and nearly 12% of total international tourism receipts in Southeast Asia.
Furthermore, while digitalization offers opportunities for increased productivity, economic growth and market expansion in Indonesia, the country recognizes that there are digital challenges that need to be addressed.
There are other barriers in the form of inadequate access to digital infrastructure, inaccessible internet services and a lack of digital technology literacy. Thus, industries that can embrace digital technology, maximize its productive use, and deliver value will survive.
Additionally, The Sec-Gen explained that prioritizing economically vulnerable groups is key to economic recovery and that digital change must be inclusive, empowering and sustainable.
Sec-Gen Tayyiba also emphasized the term “sustainable” which refers to digital transformation that aims to achieve the 2030 Agenda for Sustainable Development Goals (SDGs). Inclusive digital transformation involves providing digital access and a safe digital space at all levels of society in which citizens who are empowered can use technology productively and add value to their lives.
The main objective of the G20 has always been to recognize the importance of collective action and inclusive collaboration between major developed countries and emerging economies around the world. Understanding the challenges and the need for collective action, Indonesia will focus its 2022 G20 Presidency on three main pillars: global health architecture, sustainable energy transition and digital transformation.
Through these pillars, Indonesia will continue to lead the way in ensuring equitable access to COVID-19 vaccines, as well as promoting sustainable and inclusive economic development through the participation of MSMEs and the digital economy.
While also aspiring to improve its collective ability to deliver shared prosperity among nations through various global tax reform efforts, enhanced anti-corruption cooperation, deeper infrastructure funding and cooperation more democratic and representative international community.