President Joko Widodo reported Indonesia' digital economy valued worth of US$40 billion during 2019 - Photo by President Office

JAKARTA (TheInsiderStories) – President Joko Widodo reported Indonesia’ digital economy valued worth of US$40 billion during 2019. The amount is far beyond other Southeast Asia (ASEAN) countries, such as Vietnam, Thailand, Singapore, Malaysia and the Philippines, he adds.

According to him, the country has enormous digital economy potential for the future. Based on Google – Temasek report, by the year of 2025, Indonesia’ digital economy is predicted to touch $130 billion.

“Indonesia also has the most active startup ecosystem in Southeast Asia. Number five in the world after America, India, Britain and Canada. We have 2,193 startups. There are one decacorn and four unicorns,” he stated at one event in Jakarta, on Thursday (02/27).

This is coupled with Indonesia’ population of 267 million people and its internet penetration rate which reached 65 percent in 2019. Not to mention the completion of Palapa Ring, which connects more than 500 districts and cities throughout Indonesia which will increase this potential, he noted.

“However, the enormous potential does not necessarily make us complacent. Indonesia must take advantage of this by not letting our country only become a digital market,” he told the participants.

On the contrary, he continued, the business actors must become producers and kings in their own markets. The President said that the development of the digital economy must trigger the domestic economy, especially micro, small and medium business products, which are very numerous and able to compete.

Going forward, said the President, the digital economy must also make a significant contribution to the welfare of society. He stated, “The digital economy must also create jobs, encourage exports, lift the foreign exchange and we hope reduce the trade balance deficit.”

The government, he continued, will aims to improve the digital economic ecosystem by facilitating funding sources, providing assistance, facilitating the cooperation ecosystem with world investment institutions, and conducive regulations and bureaucracy.

At the sidelines of event, Widodo has met with American-based Microsoft Corp., CEO Satya Nadella. The tech company is looking to invest in a data center in Indonesia. 

He promised “within a week to issue a simple regulation” to support Microsoft’ investment plans in Indonesia. Widodo did not elaborate the size of the potential investment. 

Written by Staff Editor, Email: theinsiderstories@gmail.com