Minister of ICT: Indonesia Digital Economy to Reach US$ 124 billion in 2025

Minister of ICT: Indonesia Digital Economy to Reach US$ 124 billion in 2025

On September 21, during a hearing meeting with Commission I of Indonesian Regional Representative Council (DPD RI), Minister of ICT, Johnny G. Plate, stated that the government is working hard to optimize the productivity of the national digital economy to reach US$ 124 billion in 2025. According to the minister, the productivity from the digital transformation activity is expected to increase national GDP by 1% in 2021. Furthermore, the digital economy valuation is expected to grow 23% by US$124 billion in 2025. It is worth noting that the Indonesian digital economy valuation is IDR 44 billion in 2020. The latter had contributed 4% to Indonesian GDP and almost 42% to ASEAN digital economy. According to the minister, as of January 2021, Indonesia has its digital demography power from 202.6 million or 73.7% of the total population.

The minister has prepared several strategies for national digital transformation. First is the acceleration and expansion of internet coverage. The second is designing a digital transformation roadmap in some strategic sectors. The third is to expedite the integration of the National Data Center. Fourth is to prepare national digital talent. Lastly, is to prepare regulation as the base of digital transformation funding. As a matter of fact, the ministry has created Indonesia Digital Roadmap 2021-2024 that includes digital infrastructure, government, economy, and society. The latter four sectors transformation would be realized through main 100 initiatives in 10 priority sectors, including government, trade, finance, industry, media and entertainment, real estate and urban, agriculture and fisheries, transportation, education, and digital health.

On the other side, the Chairperson of Commission I of DPD RI, Fachrul Razi, appreciated the program and policies set by the Ministry of ICT, especially the effort to provide telecommunication infrastructure in 12,548 villages that have no 4G connection.


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