Indonesia Targets to Dominate Southeast Asia’s Digital Economy by 2030


Indonesia continues to intensify digitalization in all aspects, especially the economy. The Minister of SOEs, Erick Thohir, said that Indonesia’s target to dominate Southeast Asia’s digital economy could be achieved by 2030.

He recalled President Jokowi’s message before 2019, that the digital economy will be one of Indonesia’s economic growth.

“And as you can see today, the projection of Indonesia’s digital economy in 2030 will be the largest in Southeast Asia, 40 percent of the total economy in Southeast Asia for digital. Approximately Rp 4,500 trillion in value. This is a figure of extraordinary economic potential,” he said at the press conference. in front of President Joko Widodo in the Opening of BUMN Startup Day 2022, Monday (26/9/2022).

Erick continued, his party saw this momentum along with the majority of Indonesia’s young population, where now 54% are under 35 years old.

This means that Indonesia has a large market and potential human resources that are simultaneously sustainable between the digital economy and its human resources.

“We have to encourage this as a whole. From BUMN itself we are trying to initiate. We are building an ecosystem in BUMN itself. At that time we first encouraged the existence of a digital society and Alhamdulillah at that time we trained almost 19,000 who understand digital. We will do this every year. year,” explained Erick.

This big target is realistically achievable because of the demographic bonus in Indonesia where the majority of the population is millennials.

The size of the millennial population should be used as the main market and can contribute to human resources (HR) capable of boosting the performance of the national digital economy.

“We see this momentum along with the majority of Indonesia’s population being young. As many as 54 percent of the population is under 35 years old,” said Erick.

“What does this mean, Indonesia has a large market and has the potential for human resources that are the continuity between the digital economy and human resources. This is unavoidable and we must encourage it thoroughly,” he added.

On this occasion, Erick also said, to accelerate the digital economy business ecosystem, his party through the Ministry of SOEs encourages synergy and collaboration of SOE companies with Venture Capital and Indonesian startups through BUMN Startup Day 2022 activities.

This activity is divided into two major segments, namely education and business opportunities.
In the education segment, there will be panel discussions with international speakers and mentoring which will allow Indonesian startups to have intense discussions with successful startup actors and investors.

Meanwhile, in the business opportunity segment, there is business matching, or exploration of B2B collaboration, which brings together SOEs from various sectors and industries with startups to explore business collaborations, as well as investor pitching which allows startups to offer investment opportunities to VCs within SOEs.

“This SOE startup day, how do we try to encourage SOEs to be close to startups? Thank God there are 150 exhibitors, then there are 250 startups that have been adjusted to 12 clusters in BUMN. 22 SOEs are trying to see if there is a potential for matching business,” he concluded.