Tinc Impact Report 2023: Social Media And E-Commerce Get Significant Benefits From Digital Transformation

Illustration of social media (photo: unsplash)

JAKARTA - Telkomsel launched the 2023 Tinc Impact Report which revealed the rapid growth of broadband networks over the past decade has revolutionized the digital landscape around the world.

According to Telkomsel, the transition to broadband 4G/LTE infrastructure and the implementation of 5G networks, along with government initiatives such as the Industrial Roadmap 4.0, the Digital Talent Scholarship Program, and the National Digital Literacy Movement, have accelerated the journey of national digital transformation.

Tinc Impact Report 2023 projects a number of future technological trends that have the potential to accelerate further digital transformation, such as expansion of 5G connectivity that allows Internet-of-Things (IoT) technology, Ultra HD/3D Videos, maximum internet speed, and increased adoption of Artificial Intelligence (AI) capabilities.

"With the fast internet penetration rate, about 77 percent of the population, or about 212.9 million users, now relying on the internet for communication, trading, and various other activities," said Telkomsel's Planning & Transformation Director, Wong Soon Nam in an official statement quoted Monday, August 28.

According to Soon Nam, social media and e-commerce platforms in particular, have benefited significantly from this digital transition, with 167 million social media users, or 60.4 percent of the population, actively engaging on platforms such as Facebook, YouTube, TikTok, Instagram, and X or Twitter.

The report states that the main driving factor for the development of the digital economy ecosystem in Indonesia is e-commerce, online transportation and food services, travel, and digital media consumption, which is projected to reach around $130 billion by 2025.

"With continued access and use of the internet, Indonesia has the potential to play an important role in the global digital economy by opening up inclusive and sustainable growth opportunities for businesses, governments, and individuals," he added.

In addition, in Indonesia, increasing the adoption of digital services among urban digital users opens up significant opportunities for businesses in various industries to expand reach and connect with new customers.

As many as 89 percent of urban digital users use e-commerce platforms to make purchases, and 80 percent of them are also users of online transportation platforms. Up to 59 percent of the urban population also uses online shopping platforms to buy food products.

In addition, video, music, and game services are also reported as a rising trend. With more and more people turning to digital platforms for goods, services and entertainment, it is very possible that businesses that utilize digital technology will have a better position to succeed in the Indonesian market.