Despite Many Problems, Jokowi: ASEAN Must Become A Great Power Of Digital Economy

President of the Republic of Indonesia Joko Widodo (Photo: Setkab)

JAKARTA - The President of the Republic of Indonesia, Joko Widodo, said that ASEAN must grow to become a major force in the digital economy. The COVID-19 pandemic is not an obstacle to achieving this goal.

"We must remain optimistic. Although there are many problems, there are great opportunities. In the midst of this pandemic, we are seeing the acceleration of the development of digitalization," said Jokowi through a video that was watched on the Presidential Secretariat YouTube channel, reported by Antara, Saturday, November 14.

All parties, he said, must believe there is an opportunity in the midst of the difficulties faced. Moreover, the ASEAN region and Indonesia have enormous digital potential.

By 2025, the ASEAN digital economy is projected to be in the range of US $ 200 billion, while for the same period in Indonesia, it is estimated to reach US $ 133 billion.

"However, there are still many challenges in digital transformation. First, many types of old businesses and jobs are closed. About 56 percent of jobs in five ASEAN countries are at risk of being lost due to automation," the President said.

In addition, the digital divide in ASEAN countries is still considered very large. Internet penetration as the main infrastructure for the digital economy has not been evenly distributed across ASEAN countries.

The President revealed, of the 10 ASEAN countries, only 3 countries have internet penetration rates above 80 percent.

"We must accelerate digital transformation. Moreover, currently ASEAN digital economy activities are still small, only seven percent of the total ASEAN GDP," he explained.

For that, said the Head of State, there are a number of things that ASEAN countries must continue to encourage. First, ensuring that the digital revolution runs inclusively by paying attention to aspects of access, affordability, and ability.

"The preparation of adequate and equitable digital infrastructure throughout the region must be the main agenda, not only for urban communities, but also in villages at affordable prices and accompanied by increased literacy through upskilling and reskilling of human resources," said the President. .

Second, ASEAN must also move in order to become a big player in a digital-based economy while at the same time making the digital economy the main strength of ASEAN.

The President emphasized that ASEAN should not only become a digital market, but must grow into a major power capable of helping MSMEs in ASEAN enter the global supply chain.

President Joko Widodo believes that the acceleration of the digital transformation of MSMEs will encourage the revival of the regional economy.

The President said that Indonesia itself has a promising digital ecosystem. Indonesia has 2,193 startups in 2019, the fifth largest in the world. Indonesia also has 1 decacorn and 4 unicorns.

In addition, since 2018 Indonesia has developed a road map for Making Indonesia 4.0. "We are building manufacturing industries and developing innovation centers. We provide fiscal incentives in the form of super tax deduction for industries that invest in research and development," he said.

Finally, the Head of State said that a strong synergy between ASEAN countries was needed to create a conducive digital ecosystem in the region.