John Riady: Indonesia Has The Opportunity To Lead The Digital Economy Block In The Southeast Asian Region

John Riady. (Photo: Doc. Antara)

JAKARTA - Indonesia is considered to have the opportunity to lead the digital economy block in the Southeast Asian region in line with the large investment in technology startups as well as the largest market, so that it can play a significant role for the world economy.

Lippo Group Executive Director John Riady, as quoted by Antara, Monday, June 5, said Indonesia controlled almost half of Southeast Asia's population with a stable economic growth rate.

Until March 2023, Indonesia was the only Southeast Asian country to be included in the top 10 countries with the most startups.

Indonesia's total startup, as reported by Startup Ranking, reached 2,502 companies.

John assessed that with this position, Indonesia could lead Southeast Asia to maximize economic potential in the digital era as it is today. The growth of startups in Indonesia is still quite prospective.

"In the next decade, Indonesia is still enjoying a demographic bonus with solid middle class growth and a millennial generation and Z generation user market that is adaptive to technology," said John.

Another factor that makes Indonesia a motorcycle, according to him, is the development of physical infrastructure as well as broad and equitable internet penetration.

"This is also very well realized by Mr. President Jokowi, who wants Indonesia to be the main player in the digital economy in Asia Tenggara," he added.

Di sisi lain, John mengungkapkan Asia Tenggara secara regional saat ini dan masa depan bakal memiliki peran signifikan bagi perekonomian dunia.

"For this year alone, Southeast Asia's growth rate is still above the world average, predicted at around 4.7 percent," he said.

Furthermore, the population of Southeast Asia this year is estimated to reach 679.69 million, or almost 9 percent of the world's total population. In addition, according to him, the majority of the population is of productive age that supports growth and market consumption is quite large.

John predicts that in the next ten years, Southeast Asia could penetrate as the world's third-largest growth motor.

"Not only high, regional stability is maintained. This is what attracts investment from outside," he added.

He considered the momentum of the 42nd Southeast Asian Summit to be very careful in seeing the opportunities for economic unity and should be realized further. According to John, in 2015, similar efforts have begun with an agreement to form the Southeast Asia Economic Community (AEC).

For Southeast Asia, Lippo Group is also involved in developing various start-ups by investing in 40 technology companies in the region.

"That's for the early stage category, the most important thing is still in Indonesia," he said.

Previously, the development and integrity of the digital economy had become a discussion at the 42nd ASEAN Summit in Labuan Bajo, NTT, this year. The meeting reminded the important role of these Southeast Asian countries in world economic regulations.

During the meeting, President Joko Widodo emphasized that the ASEAN region should become the center of world economic growth (epicentrum of growth).

President Jokowi also conveyed a message that Southeast Asian countries always strive to improve people's welfare. The results of the summit are also very meaningful to remind the region's great potential.