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Building Digital Ecosystem in Indonesia

Most people are compelled to remain indoors and work from home in the wake of enforced quarantines and lockdowns due to the COVID-19 pandemic. In no other time in modern history has access to the internet been as crucial a form of communication to the average person as it is now.

Governments worldwide are turning to digital technology for required policy work, even as businesses are maximising their digital tools to assist online operations. Such a condition demonstrates that digital technology is at the forefront of the so-called new normal.

Digital tools will shape the global economy following the pandemic. The impact of digital tools transcends households. This has left policymakers with many lessons to learn, as well as much work to do, and propelled people and businesses to adapt and accelerate the adoption of digital technologies.

Following these developments, the Indonesian government and business circles certainly cannot remain still and left behind. For this reason, it is necessary to develop a digital ecosystem to encourage digital transformation in the country. Some efforts to develop a digital ecosystem have been carried out by the Ministry of State-Owned Enterprises (SOE) and among SOEs in Indonesia.

SOEs continue to prepare infrastructure, funding, and aggregators to develop Indonesia’s digital ecosystem and to build self-sufficiency for the digital transformation. The government will offer massive investment in the nation’s digital infrastructure. SOEs are currently implementing and will continue to carry out, various initiatives in developing Indonesia’s digital ecosystem.

Indonesia should create its own digital ecosystem and not be complacent with the abundance of natural resources and the large market, which has often been a source of economic growth for other countries. Strengthening the digital ecosystem was not only about the issue of digital infrastructure development, but also the transformation of human resources.

In fact, hiring workers with digital skills has grown substantially in the last three years across the Asia-Pacific region, highlighting the gap between workforce supply and demand and emphasising the urgent need for governments and businesses to invest in digital upskilling and reskilling of their workforces. The research finds that the digital hiring rate across the region increased three-fold between 2016 and 2019.

Digitalisation offers many opportunities and challenges, the most pressing one is to address and manage the discrepancy between industry and education and training systems, where the former moves and innovates a lot faster than the latter.

Indonesia aims to take advantage of the momentum of digital disruptions, whose presence not only provides challenges but also provides opportunities to increase Indonesia’s competitiveness in the global arena. It is estimated that the size of Indonesia’s digital economy will continue to grow to Rp1.73 quadrillion (US$120.68 billion) in 2025. To date, it has grown significantly to reach Rp560 trillion (US$39.07 billion) in 2019 and Rp616 trillion (US$42.97 billion) in 2020.

As reported by OpenGov Asia, digital technology has the potential to create new jobs for 20-45 million workers in Indonesia, according to the Indonesian National Development Planning Minister and Head of the National Planning and Development Agency (Bappenas) Suharso Monoarfa. Addressing the Statistical Society Forum, Monoarfa said Indonesia has experienced digitalisation which is projected to create new types of jobs for 20-45 million vacancies.

Indonesia must conduct economic transformation in the post-COVID-19 period, such as by improving the skills of Indonesian workers so that the national economy will not only recover but also grow higher beyond 5% per year.

While Indonesia has one of the fastest-growing digital economies in South East Asia, action is needed to ensure that all Indonesians, especially the most vulnerable, can access various digital technologies and services and realise the benefits. Although the accelerated adoption of internet-enabled services during the pandemic is likely to boost the growth of the digital economy, the benefits of such development could be unequal.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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