The Indonesian government is undertaking a comprehensive program for the recovery of the tourism industry in the nation, which has resulted in the loss of 409,000 jobs and a decline in state revenues.
Currently, the internet penetration in Indonesia for the year 2021-2022 period reached 77.2% and based on the reported data in 2020, mobile device users reached 370.1 million or more than 100 million of the total population in the country.
“The predicted value of Indonesia’s digital economy in 2025 is worth USD 146 billion or equivalent to Rp. 2,103 trillion. In 2030 it will reach USD 330 billion or equivalent to Rp. 4,752 trillion, ”according to Mira Tayyiba, Secretary-General, Ministry of Communications and Informatics.
She added by 2030, the value of the digital economy in Southeast Asia is due to increase by one trillion dollars. This data is reinforced by Indonesia’s potential for internet expansion and has opened up opportunities for the digital economy in the country.
Sec-Gen Tayyiba cited some of the government initiatives such as: Building a 4G network in 12,548 villages (out of 83,218 villages and sub-districts that have not been reached by the 4G network); Development of a digital platform for the Tourism Network Hub; Tourism Village Assistance through English language training, Utilization of online stores and training for Digital Entrepreneurship Academy.
In 2020, on the other hand, Indonesia received a total of 4 million tourists, ranking it 44th in the world in terms of absolute numbers. Tourism alone produced approximatelyUS $ 3.53 billion for the country. This represents 0.33% of its gross domestic product and 12% of Southeast Asia’s total international tourism receipts.
Furthermore, while digitalisation provides opportunities for increased productivity, economic growth, and market expansion in Indonesia, the country recognizes that there are digital challenges that must be addressed.
There are further obstacles in the lack of access to digital infrastructure, inaccessible internet services, and a lack of digital technological proficiency. Thus, those industries that can adopt digital technology, maximize its productive use, and provide value that will survive.
In addition, the Sec-Gen explained that prioritizing economically vulnerable groups is the key to economic recovery and digital change must be inclusive, empowering, and sustainable.
Sec-Gen Tayyiba also emphasizes the term “sustainable” which achieves the 2030 Agenda for Sustainable Development Goals (SDGs). Providing digital technology to all levels of society in which citizens are empowered to use technology productively and add value to their lives.
The core purpose of the G20 has always been to recognize the importance of collective action and inclusive cooperation among major developed countries and emerging economies around the world. Understanding the challenges and the need for collective action, Indonesia will focus its G20 2022 Presidency on three main pillars: Global Health Architecture, Sustainable Energy Transition, and Digital Transformation.
Through these pillars, Indonesia will continue to take the lead in COVID-19 vaccines, as well as promoting sustainable and inclusive economic development through the participation of MSMEs and the digital economy.
While it is also committed to improving its collective capacity in nations, it is important to ensure that there is a higher standard of financing.