Equal distribution of digital infrastructure can improve competitiveness

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Jakarta(ANTARA) –
Coordinating Minister for Economic Affairs Airlangga Hartarto said equal distribution of digital infrastructure could serve as the basis for improving Indonesia’s digital competitiveness.

He delivered this message at the Indonesia Digital Finance Economy Festival 2024 in Jakarta on Thursday.

According to East Ventures’ Digital Competitiveness Index, regions in Java still dominate in digital competitiveness with high scores.

He explained that this was because the island’s digital infrastructure was relatively evenly distributed.

However, despite the fact that Southeast Sulawesi is not part of Java, it is one of the eight regions with the highest scores.

“Southeast Sulawesi made it to the top eight because of its location, digital infrastructure projects and the Palapa Ring (fiber optic project),” he said.

He also stressed that the continued development of the digital economy requires sufficient digital talents.

In addition, he said that to achieve the goals, it is necessary to improve financial inclusion while strengthening the foundation.

Indonesia’s National Financial Inclusion Council and third-party collaborations such as Strive with Mastercard Indonesia and Promise II Impact with the International Labour Organization (ILO) continue to encourage the implementation of several initiatives such as the Indonesian QR Code Standard (QRIS).

These collaborations aim to increase access to financial services and improve financial literacy to achieve the 90% financial inclusion target by 2024.

At the end of 2023, the Indonesian government completed the National Strategy for Digital Economy 2030, which aims to promote the digital industry to contribute to Indonesia’s gross domestic product (GDP) in stages. The industry’s contribution rate is targeted to reach 20% by 2045.

At the regional level, Indonesia also reached an agreement to develop the ASEAN Digital Economy Framework Agreement (DEFA) to advance digitalization and interoperability.

Hartarto said that under the agreement, the ASEAN digital economy is expected to reach US$2 trillion by 2030.

“As a result, Indonesia’s digital economy will grow from an estimated $360 billion to $600 billion by 2030,” he said.

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