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Indonesia Strengthens Digital Literacy to Improve Digital Economy

Equitable digital literacy can boost productivity and innovation in a variety of industries, particularly the digital economy. According to a spokesman for the Ministry of Communication and Informatics, developing human resources capable of using the internet to promote productivity and innovation, particularly in the digital economy sector, is critical. In addition, he drew attention to a study that found Indonesia’s digital economy grew by 11% between 2019 and 2020. By 2024, this figure is expected to rise to US$124 billion.

“The Ministry of Communication and Informatics believes that through digital literacy, the number of MSMEs that are onboard the digital ecosystem will continue to increase, from the current figure of 12 million MSMEs,” a spokesman for the Ministry of Communication and Informatics remarked. Heretofore, on a separate occasion, he elaborated on three key areas of the government’s focus in responding to rapid developments in the digital economy today and in the years ahead.

Digital literacy plays an important role in creating human resources that can use the internet to encourage productivity and innovation, especially in the digital economy sector.

– Ministry of Communication and Information

Initially, the digital economy sector has enormous potential to become Indonesia’s primary economic driver during the pandemic. According to data from Statistics Indonesia (BPS), the information and communication sector, which is directly related to the digital economy, grew by around 10.58% year on year.

Furthermore, the digital economy is expected to be worth Rp1,700 trillion in 2025. The internet, artificial intelligence (AI), and e-commerce platforms are the three active components in the digital economy. Approximately 81% of Indonesian MSMEs are unfamiliar with the digital space for optimising business opportunities.

OpenGov in an article reported that over the next four years, Indonesia is expected to lead Asia-Pacific in IT spending, supported by a strong shift toward cloud-related services as the Covid-19 pandemic prompts local enterprises to digitalise their operations. As per a report from a business consulting firm and a technology company, the country’s IT spending is expected to grow at a 13% compound annual growth rate (CAGR) over the next few years, bringing the sector’s value to US$6 billion by 2024.

The Covid-19 pandemic has increased demand for cloud services in Indonesia, as mobility constraints have forced businesses to cater to a remote workforce and serve increased online demand. “Indonesia is the fastest-growing IT market in the Asia Pacific, Japan, and China,” said a technology company’s president.

The ability for MSMEs to go digital can help them to be more resilient in the face of a pandemic. This is supported by a 35% increase in shipments of goods related to online sales in 2021.

This year, the Ministry of Communications and Informatics stated that it aimed to reach 12.5 million participants in the development of basic digital skills through the National Movement for Digital Cyber-Skills Literacy (GNLD Siberkreasi), 100 thousand participants in instilling mid-level digital skills through the Digital Talent Scholarship (DTS), and 300 participants in imparting advanced digital skills through the Digital Talent Scholarship (DTS) (DLA).

The National Digital Literacy Movement aims to recognise the dynamics of the digital era, which are critical for the public to understand to use the digital era properly and optimally.

Collaboration between the Ministry of Communication and Information, local governments, the National Cyber Creative Literacy Movement, and 110 institutions and community organisations has resulted in up to 20,000 activities promoting the four pillars of the curriculum and digital literacy module.

By 2024, GNLD Siberkreasi is expected to cover 50 million participants, 700 thousand participants for DTS, and 1,200 participants for DLA. “This programme becomes a stimulus that aligns with the president’s direction regarding preparations for the need for nine million digital human resources over the next 15 years to support digital transformation in Indonesia,” he then noted.


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