Government Puts Digital Transformation in Villages at Forefront of Economic Growth Strategy

Bena Traditional Village, location in Bajawa, one of the most you must visit in Flores Island. East Nusa Tenggara, Indonesia.

In a recent statement, the Ministry of Communication and Information (Kominfo) has emphasized its commitment to making digital transformation in rural areas a top priority. This initiative is viewed as a key driver, with the potential to generate economic growth in Indonesia that is five times greater than current levels.

Speaking directly on this matter, Fadhilah Mathar, the Chief Executive of the Telecommunication and Information Accessibility Agency (Bakti) under the Ministry of Kominfo, highlighted the significance of rural communities being the “first movers.” This strategic positioning allows for substantial growth, presenting larger opportunities compared to regions where economic growth has already reached notable levels, particularly in Java.

Fadhilah pointed out that with the presence of the internet and well-established communication infrastructure, knowledge acquisition can occur more rapidly within rural communities. This, in turn, facilitates more effective and widespread digital transformation.

During the Kominfo Media Gathering, Fadhilah expressed the national aspiration of making Indonesia a global economic player, targeting a 4th world economy ranking by 2045. He emphasized that achieving this goal requires inclusive development, especially in rural areas, as they contribute significantly to the national GDP.

Fadhilah noted that an inclusive digital transformation in villages could contribute to a substantial impact of 0.7-1 percent on Indonesia’s overall economic growth. He explained that for Indonesia to advance, a sustained growth rate of at least 6 percent annually is necessary, with an ideal target between 6.2 to 6.5 percent.

“We hope that, through inclusivity, these villages can become contributors to our national economic growth,” he asserted. The focus remains on fostering inclusive digital transformations in rural areas to ensure a more balanced and robust economic future for Indonesia.

in previous report, the government has made it a central priority to address this issue comprehensively. The ambitious goal set forth is to ensure that every village throughout the nation is seamlessly integrated into the digital landscape, boasting internet connectivity by the year 2025.

This strategic initiative was unveiled by the Telecommunications and Information Accessibility Agency (BAKTI), an integral component of the Ministry of Communication and Information, Indonesia.

Speaking on this matter, Fadhilah Mathar, the Director of BAKTI, articulated the commitment to this vision, emphasizing that by 2025, all residential villages will not only be encompassed by cellular networks but will significantly prioritize internet accessibility. This commitment signifies a multifaceted approach that encompasses a spectrum of programs aimed at strengthening the internet infrastructure across the nation.

These programs span from broadening internet access to the construction of advanced 4G Base Transceiver Stations (BTS). This year, they’ve set their sights on erecting approximately 5,000 BTS towers, an ambitious undertaking that seeks to address the prevailing connectivity gaps.