2023 ASEAN Summit: Indonesia’s Momentum Encourages a Boom in the Southeast Asian Region’s Digital Economy
JAKARTA – The digital economy has been appointed as one of the strategic pillars of the 2023 ASEAN Indonesia Chair in order to be able to accelerate inclusive digital transformation to reduce the digital divide in the region. This is in line with Indonesia’s determination to strengthen ASEAN as a center for regional economic growth.
President Jokowi said that ASEAN must take more proactive steps to harness the potential of digital technology in enhancing the economy, social development, and sustainable progress.
“ASEAN’s young generation must be an important part of digital transformation. As digital natives, millennials and Gen-Z are important drivers for accelerating digital transformation,” said President Jokowi.
Meanwhile, the Coordinating Minister for the Economy, Airlangga Hartarto said optimism for good economic performance needed to be supported by the great potential in the digital sector.
“In the last two years, people’s behavior has become increasingly contactless. And one of these is supported by e-commerce and on-demand services, such as ride hailing or ojol (online motorcycle taxis), online food delivery, and also an online-based logistics business,” said Airlangga.
Airlangga explained that in 2022, Indonesia will become a major player in digital ASEAN, because 40% of the total value of ASEAN digital economic transactions will come from Indonesia. While the realization of Indonesia’s digital economic potential itself is supported by several things, namely the number of Indonesian population which is partly in productive age, Indonesia’s position as the 6th country with the largest number of startups in the world because it has more than 2,400 startups, and Indonesia’s internet penetration which has reached 76 .8%.
“We hope that Indonesia’s chairmanship at the 2023 ASEAN Summit can boost the national economy in various cities where the series of side events for the 2023 ASEAN Summit will be held as well as being a moment to show Indonesia’s economic resilience so that Indonesia is worthy of becoming a destination for foreign investment,” said Airlangga.
Meanwhile, the Governor of Bank Indonesia, Perry Warjiyo, emphasized the importance of a strong and credible economic policy framework, supported by a strong fiscal and monetary policy mix framework.
“Therefore, a systematic framework is needed to regulate macroeconomic policies and structural reforms to overcome challenges arising from climate change, food insecurity, downstreaming and digitalization,” said Perry.
Previously, Perry also revealed that ASEAN is one of the regions that has the fastest digital economy. Even more so in payment methods.
“Economic digitalization is happening everywhere, including ASEAN. Not only economic recovery, but also supporting inclusive economic finance through the introduction of payment via QR. Including embracing MSMEs, female workers, youth, millennials. “This is the importance of digitalization,” said Perry.