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Digital Economy Becomes One of Indonesia’s Chairperson Pillars at the 2023 ASEAN Summit


West Manggarai – Indonesia is hosting the 2023 ASEAN Summit. Apart from Labuan Bajo this May, a conference featuring ASEAN countries will also be held in Jakarta in September 2023.

The digital economy was appointed as one of the strategic pillars of the ASEAN Indonesia Chair for 2023 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.

The Coordinating Minister for the Economy Airlangga Hartarto said optimism for good economic performance needs to be supported by 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 stressed 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 address challenges arising from climate change, food insecurity, downstream and digitalization,” said Perry.

Perry also said that the development of Local Currency Transactions (LCT) to support cross-border trade transactions and investment in the ASEAN region is also very important.

Previously, Perry also revealed that ASEAN is one of the regions that has the fastest digital economy. Especially in terms of 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.

At this year’s ASEAN Summit, Indonesia as the host carries 3 strategic objectives or strategic thrust, namely recover-rebuilding, digital economy, and sustainability.

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