Indonesia's digital economy has the potential to expand further, particularly amid the pandemic, which has led people to increasingly rely on technology for activities and transactions, Minister of Trade, Muhammad Lutfi, has said."E-commerce, the digital economy, is not a new trend, but will become a major topic of discussion in the midst of international trade. The size of the digital economy will be bigger and more significant in the future," the minister said while speaking at an online seminar here on Wednesday.

The value of Indonesia's digital economic transactions reached Rp632 trillion in 2020, he noted. Indonesia's digital economy is expected to grow up to eight-fold by 2030, he projected. "The digital economy will grow eightfold to Rp4,531 trillion. This will be an extraordinary growth," he remarked. E-commerce, which is expected to touch Rp1,908 trillion by 2030, is predicted to be the largest contributor to the digital economy, the minister said.

Next will be travel services, which are expected to reach Rp575 trillion, followed by digital media and entertainment platforms at Rp191 trillion, online transportation or ride-hailing services at Rp401 trillion, and digital finance or fintech at Rp224 trillion, he added.

Despite the bright prospects, Indonesia's digital economy is still at an emerging level and there are still many challenges to creating a comprehensive and efficient digital economy ecosystem in the country, Lutfi noted. The challenges include the availability of supporting technologies such as 5G connectivity, Internet of Things (IoT), cloud computing (cloud), and artificial intelligence (AI), he pointed out.To get the latest technologies, Indonesia needs to build ICT infrastructure on a massive scale, which needs to be supported by government policies, the minister advised.

Besides, Indonesia needs adequate human resources or digital talent, he added.The Trade Minister said the government is working to develop domestic digital talent by establishing coding schools. "With a supportive implementation system and policies, I am optimistic that Indonesians can go global and become hosts in their own country. (...) The digital economy is inevitable, and this will eventually string Indonesia together," he remarked.

Source: https://en.antaranews.com/news/178546/indonesias-digital-economy-has-potential-to-grow-further-lutfi