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Cyber Resilience to Support Indonesia’s Digital Economy

Indonesia is emphasising the digital economy as one of its three ASEAN 2023 priorities. The government’s goals of speeding up the transition to a digital economy and strengthening the digital infrastructure are reflected in this effort.

The dynamics of the digital economy provide insight into the progress of digital transformation. By 2022, Indonesia’s digital economy is expected to be worth USD 77 billion, making it the largest in Southeast Asia. This amount represents 40% of the ASEAN economic market share on the internet. The value of Indonesia’s digital economy is forecast to exceed USD 130 billion by 2025, adding urgency to the need for a digital transformation.

Airlangga Hartarto, Minister of the Economy Coordinator, stressed the need for enhanced cybersecurity capabilities to foster expansion in the digital sector. By 2024, cybercrime related to data leaks might cost the global economy up to US$5 trillion. Hence, measures should be taken to ensure the privacy and security of digital data.

“I’d like to extend an invitation to everyone here, especially the attendees of the summit, to work together in support of cyber resilience and data security to hasten digital transformation and increase national economic resilience. Let’s work together to make the digital space,” Airlangga suggested when introducing the 2023 DataSecureAI Web Summit in Jakarta’s Central District.

According to the Interpol Cyber Assessment (Report 2021), 2.7 million ransomware attacks were recorded in ASEAN nations between January and September of 2020. With 1.3 million instances, Indonesia as having one of the highest cases.

On October 17, 2022, the government took a significant step towards bolstering cyber security in the country by enacting Law Number 27 of 2022 About the Protection of Personal Data (UU PDP).

Airlangga disclosed that the government is still working on a structural reform plan to achieve economic development that benefits everyone. The passage of the Job Creation Law, the pace of digitisation, and the elimination of extreme poverty all continued as part of the ongoing structural reform efforts. The government also deregulated risk-based business licencing (OSS-RBA) in the hopes that it would become a game-changer in attracting new capital.

Additionally, the downstream development of green economy industries and the improvement of Investment Management Institutions geared towards the renewable energy sector become part of the efforts. Indonesia is working to speed up the transition to green technology by developing electric vehicles (EVs) to distribute downstream goods. This approach aims to ensure that the downstream industry always has access to raw materials by increasing investment in the entire value chain for electric vehicle batteries.

President Joko Widodo has stressed the significance of the digital economy, which he said accounts for 15.5% of the global GDP and serves as the key to the future of the global economy. The internet economy has also helped many formerly underserved areas join international supply chains.

Angela Tanoesoedibjo, Deputy Minister of Tourism and Creative Economy and Deputy Head of the Tourism and Creative Economy Agency have advocated for increasing the number and calibre of people working in the digital economy. “With a projected 20% CAGR between 2021 and 2025, Indonesia’s digital economy is poised to reach USD 146 billion in 2025. It is anticipated that by 2030, this number will have increased to $US 330 billion.”

She has called on people in the digital business to be well-versed in humanities and equipped with problem-solving skills. Those future technological growth benefits businesses and contributes to national progress and individual well-being.


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