Indonesia is the fastest-growing digital economy in Southeast Asia and the 10th largest economy in terms of purchasing power parity today. Since the Asian financial crisis in 1997, the country has enjoyed consistent GDP growth and is gearing up for complete recovery from the pandemic-induced economic downturn of 2020. At the heart of its plans and preparations is its Making Indonesia 4.0, which aims to push Indonesia to the top 10 economies by 2030. 

Developing an Inclusive 
This large archipelago is made up of more than 300 ethnic groups spread over its 17,500 islands, a dispersion that resulted in microcultures within the nation. Despite this, the country is collectivistic and inclusive in its culture and economic agenda. In fact, the government’s plan aims to ensure that technological transformation will be for all, especially for the small and medium enterprises that make up most of Indonesia’s economy. 

Indonesia is in its demographic window, which explains its high level of productivity. This is a demographic stage where a more significant portion of a country’s population is in its productive years. It is a time when countries historically experience even double-digit economic growth rates. Thus, it was no surprise that Making Indonesia 4.0 was launched in 2018 when industry, OT, IT, demographics, and innovation accelerators collided. 

Managing the innovation process successfully is complicated. The focus of this discussion is on the approaches nonprofits, businesses, educational institutions, government agencies and other organizations can employ to develop an inclusive innovation ecosystem to improve their communities’ well-being. Specifically, it is argued that government can be a catalyst,” a representative coalition of collaborators, may prove to be the most significant entity in this process due to its coordinating role, fundraising capacity and results-driven orientation.   

Cloud technology could achieve the government’s goals of diversifying industries, having greater economic inclusion, and improving the distribution of wealth amongst the Indonesian nationals. The cheaper costs involved in using cloud technology ensure a lower entry barrier even for the likes of the Tokopedia and halodoc 

Boosting Government agility 

Cloud technology ensures the government’s system requirements can adjust to different workloads, ensuring the public sector’s ability to respond to the people’s demands even during peak hours. 

Creating efficiencies that impact labour productivity rate 

Information technology that complements workers’ skills and connectivity results in greater efficiency within the organisation and their counterparts globally. This will pave the way for Indonesia to open up in a more excellent way to global markets, bringing local Indonesian products and services for global consumption. 

Powering up economic diversification plans 

The government’s plan to remove the reliance on traditional businesses is empowered as cloud technology provides the flexibility to scale up or down without high capital costs. The private sector will also find it easier to explore and engage in new industries as technology is widely available to them. This facilitates government work and frees up employee time to explore other opportunities to improve and innovate services and processes for the public. 

Revolutionises communications 

Industry 4.0 involves a radical transformation for many industries as computers are connected. This connectivity includes interconnections between the public and private sectors, making governance more straightforward and efficient. Cloud technology provides the platform that enables efficient supply chain communication for Industry 4.0. 

Reduces costs of system upgrades 

Based on the experience of more digitally advanced countries, cloud technology reduces the capital costs of moving on-premises systems to the cloud. In the case of Kominfo (Ministry of ICT) Indonesia, they have reduced the Total Cost of Ownership (TCO) by 50 % to its on-premises. In the case of Singapore’s Land Transportation Authority, their move to the cloud from on-premise systems resulted in 60% cost savings. 

Ensures greater inclusion 

The lower cost of cloud technology ensures that the government will be easier to reach and have a more remarkable ability to respond to the public’s needs and demands. When coupled with the complementary infrastructure, cloud technology ensures that people, even in the far-flung islands of Indonesia, will have access to government services. 

OpenGov Asia is pleased to invite you to an exclusive OpenGovLive! Virtual Breakfast Insight that aims to provide the latest information on the benefits of cloud technology to Indonesia’s public sector. This event is by invitation only and will be an interactive session with decision-makers in the Indonesian public sector.