Airlangga Encourages Digitalization to Become the Mainstay of the New Economic Growth Engine

Coordinating Minister for Economic Affairs Airlangga Hartarto (Photo: Antara)

JAKARTA - The government is encouraging digitalization as a new engine of economic growth. This is to achieve the target of getting out of the middle income trap or middle class trap so that it becomes the 5th largest economy in the world.

Meanwhile, the national economy in the fourth quarter of 2023 was able to grow by 5.04 percent (yoy) or higher than the third quarter of 2023 which grew 4.94 percent (yoy).

On a full-year basis, economic growth throughout 2023 was also recorded at 5.05 percent (yoy). This growth achievement was still supported by the Household Consumption expenditure component of 4.82 percent (yoy) and Gross Fixed Capital Formation of 4.40 percent (yoy).

Spatially, all regions in Indonesia continue to experience strengthening with an economic structure that is still dominated by Java with a contribution reaching 57.05 percent.

Significant economic growth was also achieved by North Maluku Province 20.49 percent and Central Sulawesi 11.91 percent, which was supported by the performance of the base metal processing industry as an implication of the downstream policy.

"We must maintain the momentum of various good achievements together, especially because we have a target to get out of middle income and become the 5th largest economy in the two worlds as stated in the Golden Indonesia Vision 2045," said Coordinating Minister for Economic Affairs Airlangga Hartarto in his statement quoted Wednesday 21 February.

Airlangga said that in order to maintain the momentum of this achievement, the Government is relying on digitalization as a new economic growth engine that can encourage economic resilience in the future.

For this reason, increasing access to technology, increasing digital skills, and appropriate regulatory support are key in ensuring the continuity of digital transformation to support sustainable economic development in various sectors, including trade, education, health, and other services.

Based on the 2023 Google, Temasek, and Bain & Company reports, around 40 percent of the total value of digital economic transactions in ASEAN in 2023 will come from Indonesia. In nominal terms, the value of Indonesia's digital economy reached 82 billion US dollars or grew 8 percent from the previous year and is projected to continue to increase, so that Indonesia is considered a big and potential market within the scope of the digital economy.

Furthermore, Airlangga said that to realize the big and potential market in the digital economy, a number of efforts will continue to be accelerated by the Government, starting from strengthening digital talent, increasing access to quality digital services, expanding the use of technology for the welfare of society, anticipating the negative impacts of digital technology disruption, as well as encouraging research, innovation and business development or Micro, Small and Medium Enterprises.

Furthermore, as one of the Government's concrete efforts to encourage the digital economy, the Coordinating Ministry for Economic Affairs has also launched a White Paper on the National Strategy for Digital Economic Development which is a strategic basis so that Indonesia can adapt to technological changes and global dynamics.

"I am sure, with good cooperation, we can accelerate digital transformation while realizing the vision of a Golden Indonesia 2045," concluded Airlangga.