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Indonesia’s Inclusive Digital Economy Hub to build a digital economy that will reduce economic and social disparities.

Indonesia’s Inclusive Digital Economy Hub to build a digital economy that will reduce economic and social disparities.

Representatives from Mexico, Indonesia,
South Korea, Turkey and Australia, otherwise known as the MIKTA organisation,
have shown appreciation for the Inclusive Digital Economy (IDE) Hub. This is an
initiative of the Government of Indonesia that offers a solution to accelerate
the adoption of digital technology in order to reduce economic and social
disparities.

As reported
by the Ministry
of Communication and Informatics
, the IDE Hub is an Indonesian
initiative, in the form of a portal, wherein information on accelerating the
adoption and application of innovative digital business models are contained.
The knowledge it holds is deemed useful for reducing economic and social
disparities.

Special Staff of the Minister of
Communication and Informatics for Digital Economy Lis Sutjiati explained that
the experts coming from the MIKTA countries are excited with the potential of
the IDE Hub. MIKTA member countries can adopt the hub’s business model within
their own countries and be able to build a digital economy that will reduce
their country’s Gini ratio.

The Gini coefficient is a measure of
inequality of a distribution. The issue on economic disparities is encountered
not only by poor countries but also by developed and developing countries. It
was added that even rich countries face challenges on how to reduce these
problems which are brought about by access issues.

The IDE Hub platform will act as the
driving force behind the creation of a shared economy, workforce digitalisation
and financial inclusion that will greatly benefit the lower socio-economic
pyramid societies, the entrepreneurs, and the SMEs.

The idea behind IDE Hub came from how
digital economic potential can be used as a tool to suppress economic and
social disparities, which are grounded on Indonesia’s experience.

The MIKTA Innovation Group, a working group
within MIKTA that focuses on entrepreneurship and SME collaboration, will be
able to maximise the resources of IDE Hub as it explores commercialisation
opportunities for new and innovative business ideas.

Informality, flexibility and diversity are
considered the strengths of MIKTA because these principles enable members to
freely exchange ideas and be able to explore breakthroughs in discussing global
issues.

The 2-day MIKTA Experts Seminar on the
Inclusive Digital Economy Hub aimed to obtain inputs for the development and
adjustment of the IDE Hub developed by the Ministry of Communication and
Informatics, in collaboration with PricewaterhouseCooper (PwC).

Director General of Multilateral
Cooperation, Ministry of Foreign Affairs
Febrian A. Ruddyard explained, “Through this meeting we hope to get input into
Indonesia's initiative on the development of hubs (portals) used to promote the
adoption of innovative digital business models.”

PwC Indonesia Advisor Mr Malcolm Foo
explained that PwC Indonesia recognised the importance of the digital economy
for Indonesia. The company’s participation in the formulation of the concept of
IDE hub formation is in line with its core value of giving solutions to
important problems in nation development.

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