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Creating Million New Jobs Through Digital Technology in Indonesia

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.

In addition to the use of digital technology, the economy should be developed in a more inclusive and sustainable way so that Indonesia can achieve its Net Zero Emissions target by 2060, he added. Economic recovery alone is not enough to lift the trajectory of the economy, so it is necessary to speed up economic transformation in order to both restore and lift the economy higher, the minister affirmed.

According to Monoarfa, in 2023, the Indonesia n government is optimistic of economic growth starting to accelerate or being higher than the target in 2022, which ranges from 5.3 to 5.9% year-on-year, thus helping the Southeast Asian nation maintain its status as an upper-middle-income country.

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.

For Indonesia to leverage digital technologies for greater inclusion, the new report emphasises three policy priorities. The first is to boost digital connectivity and universalize access to high-quality internet through efforts such as improving the clarity of regulations around the sharing of telecom infrastructure.

The second priority is to ensure that the digital economy works for all. This can be supported by better logistics and greater investment in relevant skills for the digital era. The third priority is using digital technologies to provide better public services, improve the quality of citizen-and-state interactions, and build trust in the digital world.

Despite the progress in expanding the internet over the past decade, the basic connectivity gap remains a major hurdle in Indonesia. Almost half of the adult population is still without access while the urban-rural connectivity divide has not narrowed. In 2019, 62% of Indonesian adults in urban areas were connected to the internet compared to 36% in rural areas, while it was 20% and 6% respectively in 2011. Indonesians in the top 10% of the income distribution were five times more likely to be connected than those in the bottom 10%.

Digitally engaged Indonesians are now experiencing how technologies reshape their lives and commercial activities contributing to a better consumer experience. However, the opportunities are often limited to a particular demographic group with a relatively higher level of skills. Digital gig work is more remunerative than other forms of informal work but is concentrated among urban male workers predominantly in the transportation, storage, and communications sector.

The report recommends the development of a national digital ID framework to enable Indonesians to prove their identity securely online, including a law on personal data protection that is backed by an independent oversight body. It calls for a reorientation from a narrow focus on e-government to a more comprehensive national digital transformation agenda.

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.

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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.

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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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