February 26, 2024

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Indonesia Accelerates Digital Transformation in its Tourism Sector

The Indonesian government is undertaking a comprehensive programme for the recovery of the tourism sector in the nation, which has been the hardest hit by the Covid-19 outbreak, resulting in the loss of 409,000 jobs and a decline in state revenues.

Currently, the internet penetration in Indonesia for the year 2021-2022 period was reached 77.2% and based on the reported data in 2020, mobile device users reached 370.1 million or more than 100 million of the total population in the country.

“The predicted value of Indonesia’s digital economy in 2025 is worth USD 146 billion or equivalent to Rp. 2,103 trillion. In 2030 it will reach USD 330 billion or equivalent to Rp. 4,752 trillion,” according to Mira Tayyiba, Secretary-General, Ministry of Communications and Informatics.

She added by 2030, the value of the digital economy in Southeast Asia is projected to increase by one trillion dollars. This data is reinforced by Indonesia’s potential for internet expansion and has opened opportunities for the digital economy in the country.

Sec-Gen Tayyiba cited some of the government initiatives such as: Building a 4G network in 12,548 villages (out of 83,218 villages and sub-districts that have not been reached by the 4G network); Development of a digital platform for the Tourism Network Hub; Tourism Village Assistance through English language training, Utilisation of online stores and training for Digital Entrepreneurship Academy.

In 2020, on the other hand, Indonesia received a total of 4 million tourists, ranking it 44th in the world in terms of absolute numbers. Tourism alone produced approximatelyUS$ 3.53 billion for the country. This represents 0.33% of its gross domestic product and nearly 12% of Southeast Asia’s total international tourism receipts.

Furthermore, while digitalisation provides opportunities for increased productivity, economic growth, and market expansion in Indonesia, the country recognises that there are digital challenges that must be addressed.

There are further obstacles in the form of inadequate access to digital infrastructure, inaccessible internet services, and a lack of digital technological proficiency. Thus, those industries that can adopt digital technology, maximise its productive use, and provide value will survive.

In addition, The Sec-Gen explained that prioritising economically vulnerable groups is the key to economic recovery and digital change must be inclusive, empowering, and sustainable.

Sec-Gen Tayyiba also emphasised the term “sustainable” which refers to digital transformation that aims to achieve the 2030 Agenda for Sustainable Development Goals (SDGs). Inclusive digital transformation entails providing digital access and secure digital space to all levels of society in which citizens who are empowered can use technology productively and add value to their lives.

The core purpose of the G20 has always been to recognise the importance of collective action and inclusive collaboration among major developed countries and emerging economies around the world. Understanding the challenges and the need for collective action, Indonesia will focus its G20 2022 Presidency on three main pillars: Global Health Architecture, Sustainable Energy Transition, and Digital Transformation.

Through these pillars, Indonesia will continue to take the lead in ensuring equitable access to COVID-19 vaccines, as well as promoting sustainable and inclusive economic development through the participation of MSMEs and the digital economy.

While also aspiring to improve its collective capacity in securing shared prosperity among nations through various reform efforts in global taxation, stronger cooperation in fighting corruption, deeper infrastructure financing, and pushing for more democratic and representative international cooperation.


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