Indonesia’s Economy Secret Key to Surviving During the Pandemic

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Indonesia was in a crisis period due to the Covid-19 pandemic. However, Indonesia can still survive until now. During the G20 Presidency side event, the Governor of Bank Indonesia revealed the secret key to dealing with the crisis.

According to Bank Indonesia Governor Perry Warjiyo, the key to the secret is the digital economy. He conveyed this during the G20 Presidency side event, namely the 2022 Indonesian Digital Financial Economy Festival (FEKDI) which took place in Bali today, Monday (11/7/2022).

“In this FEKDI, it is the focus on digital that has saved our economy during the pandemic, which is now and in the future a pillar of advanced Indonesia,” explained Perry.

“With close synergy and collaboration, Indonesia has survived Covid-19 and is greatly supported by the fast pace of Indonesia’s digital financial economy,” said Perry again.

The rapid acceleration of digital finance in the country, said Perry, is reflected in e-commerce transactions this year, which rose 31 percent or reached Rp. 536 trillion. Electronic money this year is also estimated to reach Rp. 360 trillion, or an increase of 18 percent.

“Moreover, digital banking, all-digital banking services, digital banking services this year are estimated to increase to Rp 51,000 trillion,” explained Perry.

Bank Indonesia as the monetary authority also continues to support digitalized payment systems, last year BI launched the digitization of toll road payments and retail transactions.

Before the Covid-19 pandemic hit, said Perry in May 2019, BI had also launched a blueprint for digitizing the Indonesian payment system.

“In five years we will digitize the payment system because there are no economic and financial transactions that do not go through the payment system,” explained Perry.

BI’s achievement in digitizing payment systems is reflected in the achievement of 18.7 million merchants connected to QRIS or more than BI’s target of 15 million merchants.

“89% of QRIS users are MSMEs and this year, God willing, 30 million users will be achieved and in the next three years 65 million MSMEs will be digitized,” Perry continued.

Previously, SOE Minister Erick Thohir said that by 2030 Indonesia’s digital economy is estimated to grow 8 times, faster than the APBN which only increased 1.5 times.

“Our digital economy figure grows 8 times faster than the state budget which is 1.5 times, the digital economy cake is IDR 4,500 trillion and will become the largest in Southeast Asia in 2030,” explained Erick in the Public Lecture on Nationality of Great Work for Advanced Indonesia in Bandung, Tuesday (21/6/2022).

Therefore, Erick hopes that the public, especially those who are currently still students, are prepared. According to Erick, the digital economy is currently entering its third wave and he hopes that Indonesia will not only be a target market.

‚ÄúTogether, as in the early days of Covid-19, we each take on our respective roles. Some are infrastructure, others are building a digital society, and digital acceleration is,” said Erick.

The Ministry of SOEs is currently focusing on developing three things to optimize Indonesia’s digital transformation, including the development of digital infrastructure, the development of a digital society, and the acceleration of the digital ecosystem.