The country’s digital economy is expected to grow 800 percent in 2030 and, therefore, Indonesian young generation needs to make use of it by becoming entrepreneur in technology sector, a senior minister has said.

 

Trade Minister M. Lutfi said young business players must create digital economy disruption and must create added value in Indonesia.

 

“Indonesia’s digital economy will grow from Rp 632 trillion in 2020 to Rp 4,531 trillion by the end of 2030 or 800 percent growth in the next nine years,” Lutfi said during

Digital Technopreneur Festival (DTF) 2021 dan Socio Technopreneur Campus (STC) 2021 at Hotel Indonesia Kempinski in Jakarta on Friday.

 

The event was organized jointly by the Investment Ministry and Indonesian Young Businesspeople Association (HIPMI). According to Lutfi, disruption in technology is important for the new business players.

 

Export tech platform Madeinindonesia.com plays crucial role in increasing cross-border trade as it facilitates Indonesian producers to expand their business overseas. Madeinindonesia.com has also cooperated with Indonesian Embassy (KBRI) in several countries including Egypt, Qatar, Saudi Arabia, the Philippines and India.

 

According to data cited by the Trade Ministry, Indonesia’s economy or gross domestic product (GDP) in 2020 was Rp 15,400 trillion or USD1.1 trillion and in 2030 is expected to grow around 1.5 folds between Rp 24,000 trillion and Rp 30,000 trillion.

 

The largest growth of 34 percent is expected to come from electronic trade amounting to Rp 1,908 trillion or USD120 billion. No less important is the growth in education sector at 3 percent to Rp 160 trillion and health sector at 8 percent to Rp 476 trillion. Both sectors are equally important because they benefit the country’s golden generation.

 

Lutfi emphasized to improve the quality of manpower and to upgrade the education or skill of the workers it needs education technology. Likewise, health issue is equally important provide health services for the younger manpower.

 

"Therefore, we must obtain technology to provide health services to the young workforce," he added. Minister Lutfi explained, in 2020, Indonesia's digital economy, which was recorded at USD44 billion will grow eight folds to USD323.6 billion in 2030.

 

This means that it will grow six times bigger than Malaysia, seven times bigger than the Philippines, nine times bigger than Singapore, and four times bigger than Vietnam.

"If the per capita index increases from USD162.8/capita to be the same as Malaysia's at USD1,403.1/capita, then Indonesia's digital economy will grow to USD417 billion. This is one of the biggest ones,” explained Trade Minister Lutfi.

Minister Lutfi said that future trends including 5G, Internet of Things (IoT), blockchain, artificial intelligence, and cloud computing will change and affect the lives of Indonesian people.

 

“The five technologies will penetrate the boundaries of space and time. Agricultural technology [agritech], financial technology [fintech], educational technology [edutech], and health technology [healthtech] will change forever and this must be anticipated by new economic actors in the future," he added. (KH)