Digital platforms have been proven to help ecosystem members adapt, stay resilient, and eventually recover from economic shocks like the pandemic, as well as stimulate economic recovery. The conclusions are based on the most recent research from the University of Indonesia’s Demographic Institute of the Faculty of Economics and Business (LD FEB UI).
The University’s researcher remarked, “Our research finds that during an economic shock, Indonesians persist in looking for new sources of income, and the majority of them dare to take the jump and launch digital-based businesses.” He stated that the emergence of digital platforms and their ecosystem provided a buffer against the economic shock. This is certainly relevant for individuals with no past business expertise who want to jump directly into an online business.
Indonesia can advance digital transformation, notably in the financial industry, according to the Coordinating Ministry for Economic Affairs, as evidenced by the growth of 7.07% in the second quarter of 2021. (Year-on-year). In 2020, Indonesia remained 85th out of 131 nations in the digital innovation index.
According to another survey conducted by Indonesia’s biggest e-commerce tech businesses, both companies are expected to contribute 1.6% of Indonesia’s GDP in 2021, or roughly Rp 249 trillion. In comparison to the 2019-2020 period, this contribution grew by 60%. The total amount of APBN (State Revenue and Expenditure Budget) set aside for national economic recovery is estimated to be over Rp700 trillion.
While the company contributes to the economy each year, the research found that it also allows the informal sector actors in its ecosystem, such as driver-partners and small business owners, to become more resilient and recover faster in 2021 than in 2020 by increasing income.
The potential of the company’s ecosystem to help its partners continue to expand was one of the research’s most striking findings, so they remain positive about leveraging online platforms as a source of income. The additional income, which has accelerated recovery in the second year of the pandemic, has fuelled optimism among small businesses using the food delivery platform to sell online. Merchant partners’ income increased by 66% on average in 2021 compared to 2020.
In 2021, driver-partners who joined the company’s ride-hailing services saw a 24% and 18% boost in income, respectively, over the previous year. Hence, it indicates that the digital industry’s informal sector is affected by and contributes to economic recovery.
Indonesia’s government has launched several programmes to better prepare the country to deal with the potential and problems posed by developing technologies. They are also committed to prioritising infrastructure development, particularly through enhancing connections across the country, as well as accelerating the country’s digital economy’s development. The country’s structural changes are aimed at boosting productivity and competitiveness, as well as reviving industrialisation and encouraging innovation.
OpenGov Asia reported that a privately-owned bank had launched a new digital banking app in the country for Android users, making it the latest addition to a long list of digital banks that operate in the country. The new platform is integrated with all digital infrastructure owned by the bank.
The mobile app is part of the private bank’s branchless digital bank ecosystem, which can be accessed at any time and from any location. The app is also linked to all the bank’s infrastructure, such as call centres and ATM networks. The mobile app will also be available soon on the Apple App Store.
With the launch of the mobile app, the digital banking organisation which is under the bank’s expertise offers an optimal and enjoyable banking experience with a fresher look for the younger generation, which is accustomed to transacting digitally. “The mobile app is built to be the next-generation bank for better control of managing financial matters for customers,” said the president of the digital banking organisation.
