Coordinating Minister Airlangga: Our Digital Economy Is the Highest in ASEAN!

Coordinating Minister for the Economy Airlangga Hartarto. PHOTO: Coordinating Ministry for the Economy
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The Coordinating Minister for Economic Affairs, Airlangga Hartanto, proudly stated that Indonesia’s digital economy is the highest in the ASEAN region.

The digital economy in Indonesia has managed to reach a value of US$70 billion or control 40 percent of the total market share.

‚ÄúThat is 40 percent of ASEAN (market share). ASEAN itself in 2025 will be around 363 billion US dollars and we know that Indonesia is the largest digital country in ASEAN,” said Airlangga.

With the fact that Indonesia’s digital economy is strong, Airlangga predicts that the value of Indonesia’s digital economy will continue to grow to reach US$146 billion in 2025.

“Moreover, Indonesia has a very large population of productive age, reaching more than 91 million people. Most of them are Generation Z and Millennial Generation, it is hoped that they can optimize digitalization opportunities in various sectors,” he said through a press release, quoted Wednesday (9/3/2022). ).

“The five sectors of the digital economy that have the largest contribution are e-commerce, fintech, edtech, healthtech, and online media,” said Airlangga in the MSME Digitization Webinar: Driving Force for Digital Ecosystems & Democratization of the Indonesian Economy on Tuesday (8/3/2022).

Airlangga explained Indonesia’s digital economy has also grown significantly. In 2020 the value of Indonesia’s internet economy is 40 billion US dollars, in 2021 with the COVID-19 situation causing a transformation, the digital economy value will reach 70 billion US dollars.

Airlangga said that the number of UMKMs in Indonesia is around 64.2 million businesses so they can contribute Rp.9,580 trillion or 60.5 percent of the total GDP. Not only that, he assessed that UMKMs also contributed to the absorption of 97 percent of the total existing workforce and could collect up to 60.4 percent of the total investment.

He stated that the government continues to support the development of UMKM as one of the drivers of the digital economy.

“The government continues to support UMKM as a digital ecosystem with various programs and policies. That way, UMKM are expected to be able to follow the development of the digitalization process and can immediately advance to class,” he explained.

Furthermore, the government will also continue to implement policies that will have an impact on the national economic recovery. Several government-facilitated programs that have begun to be implemented are Pre-Employment Cards to the National Digital Literacy Movement.

In addition, the government has also issued various policies in favor of UMKM, especially for UMKM actors affected by the Covid-19 pandemic.