Digital Economy Potential To Increase 8-fold, Trade Minister: Gojek, Tokopedia And Partners Will Still Be Owned By Indonesia

Minister of Trade, M. Lutfi. (Photo: Doc. Ministry of Trade)

JAKARTA - The Minister of Trade (Mendag) Muhammad Lutfi emphasized that digital economy companies such as Gojek, Tokopedia, and Bukalapak will remain owned by Indonesia even though quite a lot of foreign investors have invested in the corporation.

According to the Trade Minister, this is a form of securing Indonesia's strategic assets, particularly in the digital economy sector.

“This digital economy can grow with investment and foreign financial support into this sector. But what must be ensured is that these companies must remain owned by the Indonesian people," he said virtually after holding a meeting with the President at the Merdeka Palace, Jakarta, Thursday, June 10.

The Trade Minister added that potentially Indonesia has a great opportunity to multiply the power of the digital economy in the future. In his notes, the digital economy today contributed Rp632 trillion, or the equivalent of 4 percent of the gross domestic product (GDP) which amounted to Rp15,400 trillion.

"The contribution of the digital economy will increase to 8 times or Rp4,531 trillion in 2030 when our GDP has reached 24,000 trillion," he said.

Furthermore, the Minister of Trade explained that the e-commerce sector will become the backbone of the digital economy, with a contribution of 34 percent in 2030 to Rp1,900 trillion.

Followed by the business-to-business digital cooperation scheme of 13 percent or equivalent to Rp763 trillion, health tech 8 percent to Rp417.6 trillion, online travel of Rp575 trillion, online media of Rp991 trillion, digital transportation companies (gojek, grab, etc.) of Rp401 trillion, and financial technology (fintech) company.

"Indonesia will control 55 percent of the GDP (gross domestic product) of the digital economy in ASEAN," he added.

In order to realize this, the government called the Minister of Trade continues to seek a number of improvements, both in terms of infrastructure and business conditions

"The government is also aware that there are several things that we must improve in the future, namely digital communication and also supporting infrastructure and competent human resources," he concluded.